Our book income does reflect the sale of the asset, and our book income also matches M-1 line 1. This company is not that big and all the TT data is entered manually. So we are left wondering why, within the realm of TT, a properly entered section 179 asset sale is not accounted for in the TT-generated M-2?
So TT picks up the sale properly in M-1 line 6 and in the K-1's, but ignores it in M-2. Last year we had PPP forgiveness shown on M-1 line 6 and it also showed up as part of M-2 line 3 without issue. Similar situation in that it results in an increase of the capital accounts.
We will make a manual adjustment on M-2 line 4 and move on.
