This is my first year using TT for Business. I've used a CPA, and then HR Block. CPAs (and the IRS guidelines for completing the 1120s) gave me the impression that the M2 can't be skipped. Even if your assets and revenues are less than $250k. Am I not understanding this correctly? I know I can skip Schedule L, but M2?
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There are a bunch or questions for you to answer on form 1120.
Question 13 on page 4 of Form 1120 says
"Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets are the end of the tax year less the $250,000?
If yes the corporation isn't required to complete Schedules L, M-1 and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax yea."
So, you're fine not preparing M2 if you meet the above criteria.
There are a bunch or questions for you to answer on form 1120.
Question 13 on page 4 of Form 1120 says
"Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets are the end of the tax year less the $250,000?
If yes the corporation isn't required to complete Schedules L, M-1 and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax yea."
So, you're fine not preparing M2 if you meet the above criteria.
TT did not help you fill the M-2 once you started to fill it manually?
Here is how to turn off the balance sheet ... so if you want/need it on take the other path :
https://ttlc.intuit.com/community/business/help/how-do-i-turn-off-the-balance-sheet/00/25955
Did you ever figure out why TT didn't fill out the M-2 sections? I'm having the same problem? My last year's return had it filled out, but this year it isn't filled out. However, my Schedule L (Balance sheet) and M-1 Sections are filled out.
Note: this is the second year I'm in business and I'm also an S-Corp.
Thanks,
No. I went back to HR Block Business last year
Does this section matter if you make less than $250k? I can't seem to get a clear answer on that.
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