turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jletts
New Member

I have a book/tax difference that I believe is related to non-deductible meals and entertainment. How can I reconcile on the return?

Can I file the return with a book/tax difference?  I believe it's related to the non-deductible meals.  My books show the entire amount spent, but the return is disallowing about $1800, resulting in an overage on net income of about $1200.  Or, should I amend my books?  I'm not really sure what to do here.

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
DDollar
Expert Alumni

I have a book/tax difference that I believe is related to non-deductible meals and entertainment. How can I reconcile on the return?

Yes you can file with a book - tax difference.  When you have non-deductible expenses like 50% of meals it creates a permanent book- tax difference.  If your business is filing as an S-Corp, the difference is shown on Schedule M-3 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return.   If your business is filing a Form 1065, that is Schedule M-1.  The difference will carry forward and be your starting point for next year's reconciliation.


View solution in original post

2 Replies
DDollar
Expert Alumni

I have a book/tax difference that I believe is related to non-deductible meals and entertainment. How can I reconcile on the return?

Yes you can file with a book - tax difference.  When you have non-deductible expenses like 50% of meals it creates a permanent book- tax difference.  If your business is filing as an S-Corp, the difference is shown on Schedule M-3 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return.   If your business is filing a Form 1065, that is Schedule M-1.  The difference will carry forward and be your starting point for next year's reconciliation.


jletts
New Member

I have a book/tax difference that I believe is related to non-deductible meals and entertainment. How can I reconcile on the return?

I'm using Turbo Tax and it's telling me Schedule M-1 is out of balance by -917.  Do I leave it as is or make the correction?  If it's the latter, I have no idea how to do that.  Suggestions?
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies