A few comments:
- Sch M-2 line 3 should equal Sch M-1 line 1
- Since this sale should have been recorded on the books, and most likely was, I would expect this income to already be included in Sch M-2 line 3.
- Your key lines are
- Sch M-1 line 1 and Sch M-2 line 3 should be equal
- Sch M-1 line 9 should agree to the analysis of net income line 1 (the top of page 5 of form 1065)
- Sch M-2 line 9 should agree with Sch L line 21
- If some of the above don't agree, then you have an issue to address
- If you still have issues, provide some additional facts and hopefully we can work this out for you
*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.
