Question

1065 Schedule L, M-1 & M-2

Forum|Forum|3 years ago
March 10, 2023
1 reply
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I have hit a wall trying to figure out the errors. Can not determine why the reconciliation of income per books vs. the return. The smart worksheets are not helpful. The Return net income is $683 less than the Books income. but the Book income is calculated on M-1 is not what I have on my spreadsheet. My spreadsheet net income is a lot lower than what is calculated by TT.

Pg 5 Analysis of Net income per return line 1 shows what I have on my spreadsheet: Pg 1 line 22 Ordinary business income plus line 10 Guaranteed payments to partners less depreciation. But Schedule M-1 line 1 shows a different higher amount that is added to line 3 guaranteed payments plus travel resulting in a much higher Income on Schedule M-1 line 9. Income Reconciliation and Capital Reconciliation are not in balance.

Not sure what to do.

TurboTax Business Windows

R

RobertB4444

You should be going through the balance sheet line by line and finding where the differences are so that you can locate the $683. With that size discrepancy my immediate thought is the non-deductible portion of meals or charitable donations or a transposition error.

Go to forms view and run through all of the lines on the balance sheet to find the difference between your spreadsheet and the version that TurboTax has. Then figure out what needs to be changed in order to match.

@TS27

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