GST/HST reassessment

Hi kentwood,

Welcome to the QuickBooks Desktop community! I know how important it is to keep your books accurate. Sales tax adjustments allow you to fine-tune your sales tax filings in the program. I'll be happy to assist you with this.

Adjusting your return in the system can be done in a few steps.

1. Go to the Sales Tax menu, click Manage Sales Tax and then click Adjust Tax Owing.
2. Choose an Adjustment Date.
3. Fill in the Entry No. field.
4. (Optional) If you track classes, select a class for this adjustment.
5. Click the Tax Agency drop-down list and choose the agency to which the adjustment applies, such as Receiver General.
6. Click the Sales Tax Item drop-down list and select the sales tax item for the return line you want to adjust, such as GST Adjustments.
7. Click the Adjustment Account drop-down list and choose an account.
8. In the Amount section, enter the amount of the adjustment.
9. (Optional) Enter a memo to describe the adjustment.
10. Click OK.

Here's an article for your reference: Process sales tax adjustment

I also encourage you to reach out to your accountant to make sure everything is lining up correctly for your business needs. If you don't have an accountant, you can connect with one on our Find-a-Proadvisor website.

I hope this helps! Have a nice day.

Hi

I am wondering if you can help me.  In 2019 CRA reassessed our rental corporation and disallowed several itc's on the filed 2018 HST return. I paid the amount owing to CRA along with the interest incurred out of the General Chequing (Cash) account and parked the itc adjustment in a liability account called HST Reassessed Taxes and the interest went in an interest expense account. It has stayed in this Acct. till now , but we have now sold the property and I must clean up all the entries.  My question is how do I clear it out of this account without throwing off Retained Earnings, Accts. Payable, HST Payable and the Cash Acct.? I hope I have explained the situation so that it makes sense to you.  Thanks, for any help you can provide.

Hello SP60. Thanks for chiming in on this thread. In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. 

Let me know if this info helps. Otherwise, feel free to ask questions in the comments below.