I have a LLC filing form 1065 where one of the partners receives a guaranteed payment. The instructions for Form 1065 Schedule M-2 line 3 state that this is generally the amount entered on line 9 of schedule M-1. They go on to state if net income includes income from guaranteed payments made to partners, remove such income on line 7.
Turbotax is not entering Schedule M-1 line 9 directly on Schedule M-2 line 3. It is subtracting guaranteed payments from the amount reported on Schedule M-1 line 9 in the smart worksheet. This seems to go against the instructions which state to adjust for guaranteed payments on line 7 - other decreases.
Has anyone else ran into this? Is Turbotax incorrectly calculating Schedule M-2? Should I go with Turbotax or override?
