@RobertB4444
Thanks for the reply! I don't want to change the depreciation on the return. I want the program to understand there is a difference in basis on the return vs on my books. In previous years on the return, I took Section 179 Depreciation, but I did NOT take Section 179 on my books. Therefore, on the return, the asset has a basis of $0, but on my books, the asset has a basis of $5667. In 2023, I sold the asset. TT has calculated a gain on the sale and (because we have an S-Corp), the gain is going straight to the Schedule K. TT is showing the the gain as a permanent difference between the return and the books on the Schedule M-1 -- it is assuming the gain calculated for the Schedule K is the same gain on my books (in actuality, I have a loss on my books). Is there a way to prevent the Permanent Difference from being populated on my M-1? Or a way to let the program know the gain/loss for the asset on my books?
