I appreciate the information and suggestions. Here is my M-2 for 2022 on an Excel sheet. Note that my tax returns were completed by a CPA for the past 15 years. So, the Line 1 amounts are from the CPA 2021 return (the OAA is the balance from my forgiven PPP loan). TT for Business matched all the numbers except for Line 7 $14,242 which takes Line 8 to -$1,427. TT is forcing Line 7 to $12,815 and Line 8 to 0. I understand that Line 8 cannot go negative due to Distributions, but it's not really the Distribution, but rather the initial balance of -$39,224 that makes it negative. I reviewed several of my past returns and there are several situations that have a Distribution larger that Line 6 and Line 8 is negative.
To some extent, who cares except with the Distribution forced to a smaller amount, Schedule L Retained Earnings is off. Obviously, I can override values but then my returns do not match my Excel sheet forever going forward.
Any thoughts on this?
| | TAX YEAR | 2022 |
| LINE | | AAA | OAA |
| 1 | Balance beginning of year | -39,224 | 35,995 |
| 2 | Ordinary income | | |
| 3 | Other additions | 64,190 | |
| 4 | Loss page 1 line 21 | -12,151 | |
| 5 | Other reductions | | |
| 6 | Combine 1-5 | 12,815 | 35,995 |
| 7 | Distributions | 14,242 | 35,995 |
| 8 | Balance end of year. Subtract
line 7 from line 6. | -1,427 | 0 |
| | | | |
