2nd follow-up:
- The retained earnings on Sch L line 24 is essentially a "plug" if all other balance sheet amounts are correct.
- I wouldn't include the leased vehicles unless you are absolutely sure that the lease is a capital lease.
- There are insufficient facts and a forum such as this is not suitable to make that determination.
- This decision has a number of implications that affect your tax reporting. I would make sure you consult with a tax professional who can make the appropriate decision.
- Based on the above, your retained earnings should then be $110,239. This should result in line 15 being $299,350 and line 24 being the same amount; and of course I am referring to the end of the year balance sheet column.
- This has no impact on Sch M-2 (AAA) since that is tracking taxable income / loss, and distributions. Based on your facts, the beginning of the year AAA should be correct.
*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.
