I'm a little confused on your reply:
- The M-2 tracks actual S corp pass through items on an annual and then cumulative basis
- Where exactly is this amount showing up?
- In the year of forgiveness, this amount should have been reflected on the M-2 column (a) line 3
- This then arrives at a net figure on line 8 balance at the end of the year
- Then the following year line 8 amount should be reflected in column (a) line 1
- At this point, the figure is gone as it is just a part of the cumulative AAA
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
