swaitsandClaude Opus 5.5
ea180d1d8e
check / check (push) Canceled after 0s
From the IRS form instructions (now quoted in docs/spec/sources/ irs-tax-lines.md): - On Forms 1065 and 1120-S, Schedule K takes "only taxable portfolio interest", and charitable contributions are among the items the entity "must state separately". The tax summary counted both in ordinary income and deductions; they now go in TaxSummary::separately_stated, outside book_net and tax_net, and the report, MCP export, and viewer list them under "Separately stated to owners (Schedule K)". - Schedule C: "Do not include charitable contributions". The category no longer applies to Schedule C (a sole proprietor's gift is personal, an owner draw). - interest_income's note: interest earned in the business itself is ordinary income (other_income). XLSX: a cell number is a binary double and Excel honors 15 significant digits (Microsoft, "Excel specifications and limits"), so an amount over $9,999,999,999,999.99 or finer than a cent is written as its exact text, right-aligned, instead of a number Excel would show wrong. The old conversion also fell back to 0.0 silently; gone. Property test: every whole-cent amount up to 15 digits round-trips exactly. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01GWVo7x3UHw5kwCUaWxiejX
345 lines
11 KiB
Rust
345 lines
11 KiB
Rust
//! Tax categories and the tax summary. Expected numbers computed by hand.
|
||
//!
|
||
//! The fixture: a partnership's first quarter.
|
||
//!
|
||
//! | account | category | % | book | deductible |
|
||
//! |-----------------------|-----------------------|---|---------|------------|
|
||
//! | 4000 Sales | gross_receipts | | 10,000 | 10,000 |
|
||
//! | 4100 Refunds (exp.) | returns_allowances | | 250 | (250) |
|
||
//! | 6000 Platform fees | commissions_fees | | 1,500 | 1,500 |
|
||
//! | 6100 Meals | meals |50%| 333.33 | 166.67 |
|
||
//! | 6200 Penalties | nondeductible | 0%| 40 | 0 |
|
||
//! | 6300 Software | other_deductions | | 600 | 600 |
|
||
//! | 6400 Partner pay | guaranteed_payments | | 2,000 | 2,000 |
|
||
//! | 6500 Misc | (none) | | 75 | uncategorized |
|
||
|
||
use chrono::NaiveDate;
|
||
use ledger_core::tax::{TaxForm, check_category, tax_summary};
|
||
use ledger_core::{AccountType, Currency, Ledger, LedgerError, Money, Side};
|
||
use rust_decimal::Decimal;
|
||
use std::str::FromStr;
|
||
|
||
fn d(m: u32, day: u32) -> NaiveDate {
|
||
NaiveDate::from_ymd_opt(2026, m, day).unwrap()
|
||
}
|
||
|
||
fn dec(s: &str) -> Decimal {
|
||
Decimal::from_str(s).unwrap()
|
||
}
|
||
|
||
fn books() -> Ledger {
|
||
let mut l = Ledger::new(Currency::USD);
|
||
let cash = l
|
||
.add_account("1000", "Cash", AccountType::Asset, None, false)
|
||
.unwrap();
|
||
let mut acct =
|
||
|code: &str, name: &str, t: AccountType, cat: Option<&str>, pct: Option<&str>| {
|
||
let id = l.add_account(code, name, t, None, false).unwrap();
|
||
if let Some(c) = cat {
|
||
l.set_account_tax(id, Some(c), pct.map(dec)).unwrap();
|
||
}
|
||
id
|
||
};
|
||
let sales = acct(
|
||
"4000",
|
||
"Sales",
|
||
AccountType::Revenue,
|
||
Some("gross_receipts"),
|
||
None,
|
||
);
|
||
let refunds = acct(
|
||
"4100",
|
||
"Refunds",
|
||
AccountType::Expense,
|
||
Some("returns_allowances"),
|
||
None,
|
||
);
|
||
let fees = acct(
|
||
"6000",
|
||
"Platform fees",
|
||
AccountType::Expense,
|
||
Some("commissions_fees"),
|
||
None,
|
||
);
|
||
let meals = acct("6100", "Meals", AccountType::Expense, Some("meals"), None);
|
||
let pen = acct(
|
||
"6200",
|
||
"Penalties",
|
||
AccountType::Expense,
|
||
Some("nondeductible"),
|
||
None,
|
||
);
|
||
let soft = acct(
|
||
"6300",
|
||
"Software",
|
||
AccountType::Expense,
|
||
Some("other_deductions"),
|
||
None,
|
||
);
|
||
let gp = acct(
|
||
"6400",
|
||
"Partner pay",
|
||
AccountType::Expense,
|
||
Some("guaranteed_payments"),
|
||
None,
|
||
);
|
||
let misc = acct("6500", "Misc", AccountType::Expense, None, None);
|
||
let mut post = |dr, cr, amt: &str| {
|
||
let e = l.create_entry(d(2, 1), "x");
|
||
l.add_line(e, dr, Side::Debit, Money::new(dec(amt), Currency::USD))
|
||
.unwrap();
|
||
l.add_line(e, cr, Side::Credit, Money::new(dec(amt), Currency::USD))
|
||
.unwrap();
|
||
l.post_entry(e).unwrap();
|
||
};
|
||
post(cash, sales, "10000");
|
||
for (a, amt) in [
|
||
(refunds, "250"),
|
||
(fees, "1500"),
|
||
(meals, "333.33"),
|
||
(pen, "40"),
|
||
(soft, "600"),
|
||
(gp, "2000"),
|
||
(misc, "75"),
|
||
] {
|
||
post(a, cash, amt);
|
||
}
|
||
l
|
||
}
|
||
|
||
#[test]
|
||
fn the_summary_groups_by_category_and_applies_deductible_percents() {
|
||
let l = books();
|
||
let ts = tax_summary(&l, d(1, 1), d(3, 31), Some(TaxForm::Form1065)).unwrap();
|
||
let rows = |lines: &[ledger_core::TaxSummaryLine]| -> Vec<(String, Decimal, Decimal)> {
|
||
lines
|
||
.iter()
|
||
.map(|l| (l.category.clone(), l.book, l.tax))
|
||
.collect()
|
||
};
|
||
// Refunds (an expense account) reduce receipts as negative income.
|
||
assert_eq!(
|
||
rows(&ts.income),
|
||
[
|
||
("gross_receipts".into(), dec("10000"), dec("10000")),
|
||
("returns_allowances".into(), dec("-250"), dec("-250")),
|
||
]
|
||
);
|
||
// Catalog order; meals at 50% (333.33 → 166.665 → 166.67, half away
|
||
// from zero); penalties at 0%.
|
||
assert_eq!(
|
||
rows(&ts.deductions),
|
||
[
|
||
("commissions_fees".into(), dec("1500"), dec("1500")),
|
||
("guaranteed_payments".into(), dec("2000"), dec("2000")),
|
||
("meals".into(), dec("333.33"), dec("166.67")),
|
||
("other_deductions".into(), dec("600"), dec("600")),
|
||
("nondeductible".into(), dec("40"), dec("0")),
|
||
]
|
||
);
|
||
assert_eq!(ts.uncategorized.len(), 1);
|
||
assert_eq!(ts.uncategorized[0].account, "6500 Misc");
|
||
assert_eq!(ts.uncategorized[0].book, dec("75"));
|
||
// Book: 9,750 − 4,473.33 = 5,276.67. Tax: 9,750 − 4,266.67 = 5,483.33.
|
||
assert_eq!(ts.book_net(), dec("5276.67"));
|
||
assert_eq!(ts.tax_net(), dec("5483.33"));
|
||
}
|
||
|
||
#[test]
|
||
fn an_override_beats_the_category_default() {
|
||
let mut l = books();
|
||
let meals = l.chart().find_by_code("6100").unwrap().id;
|
||
// A company party is 100% deductible: override the 50% default.
|
||
l.set_account_tax(meals, Some("meals"), Some(dec("100")))
|
||
.unwrap();
|
||
let ts = tax_summary(&l, d(1, 1), d(3, 31), None).unwrap();
|
||
let m = ts
|
||
.deductions
|
||
.iter()
|
||
.find(|x| x.category == "meals")
|
||
.unwrap();
|
||
assert_eq!(m.tax, dec("333.33"));
|
||
}
|
||
|
||
#[test]
|
||
fn categories_must_fit_the_account_and_the_return() {
|
||
let mut l = books();
|
||
let sales = l.chart().find_by_code("4000").unwrap().id;
|
||
let meals = l.chart().find_by_code("6100").unwrap().id;
|
||
let bad = |r: Result<(), LedgerError>| matches!(r, Err(LedgerError::InvalidTaxCategory(_)));
|
||
assert!(
|
||
bad(l.set_account_tax(sales, Some("meals"), None)),
|
||
"deduction on revenue"
|
||
);
|
||
assert!(
|
||
bad(l.set_account_tax(meals, Some("no_such"), None)),
|
||
"unknown key"
|
||
);
|
||
assert!(
|
||
bad(l.set_account_tax(meals, Some("meals"), Some(dec("101")))),
|
||
"over 100%"
|
||
);
|
||
assert!(
|
||
bad(l.set_account_tax(meals, None, Some(dec("50")))),
|
||
"percent without category"
|
||
);
|
||
// Guaranteed payments exist only on a partnership return.
|
||
assert!(
|
||
check_category(
|
||
"guaranteed_payments",
|
||
AccountType::Expense,
|
||
Some(TaxForm::Form1065)
|
||
)
|
||
.is_ok()
|
||
);
|
||
assert!(
|
||
check_category(
|
||
"guaranteed_payments",
|
||
AccountType::Expense,
|
||
Some(TaxForm::ScheduleC)
|
||
)
|
||
.is_err()
|
||
);
|
||
assert!(
|
||
check_category(
|
||
"officer_compensation",
|
||
AccountType::Expense,
|
||
Some(TaxForm::Form1120S)
|
||
)
|
||
.is_ok()
|
||
);
|
||
// Clearing works.
|
||
l.set_account_tax(meals, None, None).unwrap();
|
||
assert!(l.chart().get(meals).unwrap().tax_category.is_none());
|
||
}
|
||
|
||
#[test]
|
||
fn forms_parse_from_common_spellings() {
|
||
for (s, f) in [
|
||
("schedule_c", TaxForm::ScheduleC),
|
||
("Schedule C", TaxForm::ScheduleC),
|
||
("1065", TaxForm::Form1065),
|
||
("Form 1065", TaxForm::Form1065),
|
||
("1120s", TaxForm::Form1120S),
|
||
("1120-S", TaxForm::Form1120S),
|
||
("1120", TaxForm::Form1120),
|
||
] {
|
||
assert_eq!(TaxForm::parse(s), Some(f), "{s}");
|
||
}
|
||
assert_eq!(TaxForm::parse("990"), None);
|
||
}
|
||
|
||
#[test]
|
||
fn cost_of_goods_reduces_net_like_a_deduction() {
|
||
let mut l = books();
|
||
let cash = l.chart().find_by_code("1000").unwrap().id;
|
||
let cogs = l
|
||
.add_account("5000", "Cost of sales", AccountType::Expense, None, false)
|
||
.unwrap();
|
||
l.set_account_tax(cogs, Some("cost_of_goods_sold"), None)
|
||
.unwrap();
|
||
let e = l.create_entry(d(2, 1), "x");
|
||
let m = Money::new(dec("1000"), Currency::USD);
|
||
l.add_line(e, cogs, Side::Debit, m).unwrap();
|
||
l.add_line(e, cash, Side::Credit, m).unwrap();
|
||
l.post_entry(e).unwrap();
|
||
let ts = tax_summary(&l, d(1, 1), d(3, 31), Some(TaxForm::Form1065)).unwrap();
|
||
assert_eq!(ts.cost_of_goods.len(), 1);
|
||
assert_eq!(ts.cost_of_goods[0].book, dec("1000"));
|
||
assert_eq!(ts.cost_of_goods[0].tax, dec("1000"));
|
||
// The fixture's nets, less 1,000 of cost of goods sold.
|
||
assert_eq!(ts.book_net(), dec("4276.67"));
|
||
assert_eq!(ts.tax_net(), dec("4483.33"));
|
||
}
|
||
|
||
#[test]
|
||
fn forms_have_their_irs_names() {
|
||
let labels: Vec<&str> = TaxForm::ALL.iter().map(|f| f.label()).collect();
|
||
assert_eq!(
|
||
labels,
|
||
["Schedule C", "Form 1065", "Form 1120-S", "Form 1120"]
|
||
);
|
||
// A label parses back to its form.
|
||
for f in TaxForm::ALL {
|
||
assert_eq!(TaxForm::parse(f.label()), Some(f));
|
||
}
|
||
}
|
||
|
||
/// A small book with portfolio interest (125) and a donation (300) besides
|
||
/// sales (1,000), for where each lands by return.
|
||
fn interest_and_gift() -> Ledger {
|
||
let mut l = Ledger::new(Currency::USD);
|
||
let cash = l
|
||
.add_account("1000", "Cash", AccountType::Asset, None, false)
|
||
.unwrap();
|
||
let mut acct = |code: &str, t, cat: &str| {
|
||
let id = l.add_account(code, code, t, None, false).unwrap();
|
||
l.set_account_tax(id, Some(cat), None).unwrap();
|
||
id
|
||
};
|
||
let sales = acct("4000", AccountType::Revenue, "gross_receipts");
|
||
let interest = acct("4200", AccountType::Revenue, "interest_income");
|
||
let gift = acct("6900", AccountType::Expense, "charitable_contributions");
|
||
let usd = |s: &str| Money::new(dec(s), Currency::USD);
|
||
for (dr, cr, amt) in [
|
||
(cash, sales, "1000"),
|
||
(cash, interest, "125"),
|
||
(gift, cash, "300"),
|
||
] {
|
||
let e = l.create_entry(d(2, 1), "x");
|
||
l.add_line(e, dr, Side::Debit, usd(amt)).unwrap();
|
||
l.add_line(e, cr, Side::Credit, usd(amt)).unwrap();
|
||
l.post_entry(e).unwrap();
|
||
}
|
||
l
|
||
}
|
||
|
||
/// Oracle: docs/spec/sources/irs-tax-lines.md. On Forms 1065 and 1120-S,
|
||
/// Schedule K takes "only taxable portfolio interest", and charitable
|
||
/// contributions are among the "items ... must state separately": both
|
||
/// leave the ordinary-income net (1,000 here, not 825) and are listed
|
||
/// apart. On Form 1120 they stay in it (lines 5 and 19).
|
||
#[test]
|
||
fn pass_throughs_state_interest_and_gifts_separately() {
|
||
let l = interest_and_gift();
|
||
for form in [TaxForm::Form1065, TaxForm::Form1120S] {
|
||
let ts = tax_summary(&l, d(1, 1), d(12, 31), Some(form)).unwrap();
|
||
let keys: Vec<&str> = ts
|
||
.separately_stated
|
||
.iter()
|
||
.map(|x| x.category.as_str())
|
||
.collect();
|
||
assert_eq!(
|
||
keys,
|
||
["interest_income", "charitable_contributions"],
|
||
"{form:?}"
|
||
);
|
||
assert_eq!(ts.book_net(), dec("1000"), "{form:?}");
|
||
}
|
||
let ts = tax_summary(&l, d(1, 1), d(12, 31), Some(TaxForm::Form1120)).unwrap();
|
||
assert!(ts.separately_stated.is_empty());
|
||
assert_eq!(ts.book_net(), dec("825"));
|
||
}
|
||
|
||
/// Oracle: Schedule C instructions, Part V ("Do not include charitable
|
||
/// contributions"): the category is refused for a Schedule C business.
|
||
#[test]
|
||
fn a_sole_proprietor_cannot_deduct_a_gift_on_schedule_c() {
|
||
assert!(matches!(
|
||
check_category(
|
||
"charitable_contributions",
|
||
AccountType::Expense,
|
||
Some(TaxForm::ScheduleC)
|
||
),
|
||
Err(LedgerError::InvalidTaxCategory(_))
|
||
));
|
||
assert!(
|
||
check_category(
|
||
"charitable_contributions",
|
||
AccountType::Expense,
|
||
Some(TaxForm::Form1120)
|
||
)
|
||
.is_ok()
|
||
);
|
||
}
|