Balance sheet for cash basis tax return.

[user17651340416]

I am filing a cash basis return. My gross receipts are above 250k but I have almost no assets, definitely below 250k. Will I be required to file a balance sheet with my return?

[M-MTax]

Are you a sole proprietor who files a Schedule C to report business income and expenses?

If so, you don't have to file a balance sheet. You may, however, have assets that are subject to cost recovery (i.e., depreciation) to report.

[user17651340416]

I am a multi member LLC.

[M-MTax · Accepted solution]

---

@user17651340416 wrote:

I am a multi member LLC.

---

Question 4 on Form 1065:

4 Does the partnership satisfy all four of the following conditions? 

a The partnership’s total receipts for the tax year were less than $250,000.
b The partnership’s total assets at the end of the tax year were less than $1 million.
c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
d The partnership is not filing and is not required to file Schedule M-3.

If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; item F on page 1 of Form 1065 or item L on Schedule K-1.

[Mike9241]

The answer to 4a on page 2 of the 1065 "gross receipts less than $250K" would be "no" so the answer to all four questions in 4 would not be "yes". Thus, the balance sheet is required. Turbotax should not let you e-file if a required form or schedule is not completed.