RichardK
New Member

Business & farm

Additional paid in capital (APIC), does not go on either Schedule M-1, or Schedule M-2. 

Schedule M-1 is a reconciliation of book income or loss to tax income or loss, and APIC does not affect income. 

Schedule M-2 is the S corporation's version of the C corporations retained earnings, again not impacted by APIC.

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