Some follow-up questions:
- Where is your balance sheet coming from in that it is out of balance?
- Are you importing your balance sheet from somewhere? Is it in balance there, but not when importing?
- Not sure how you are out of balance unless you are trying to mix your book and tax balance sheets.
- Almost sounds as if your problem is that you need to have an M-1 to reflect income (unrealized gain on the books) on the books but not on the tax return.
- I agree with @Anonymous_ in that you may not be required to reflect a balance sheet on the tax return, however, I believe it is just a helpful item to have and maintain. It does require understanding that there will most likely be book and tax reconciliation items as noted above.
*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.
