Form 1120: Reconciliations and Balance Sheet

[BHRINC]

I can not get the book and tax amounts to match. The amount is off by the 50% of the meals that is nondeductible. How can this be reconciled?

[tagteam]

Try to follow the instructions in the TurboTax Help article below.

The balance sheet computation, frankly, is a weak area in TurboTax Business and most adjustments must be made manually.

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-reconcile-my-balance-sheet-in-turbota...

[BHRINC]

Following those instructions does not work. It is as if the 50% is automatically deducted in some of the automated calculations, but it is not for others.

I can not get the Income Reconciliation, Retained Earnings Reconciliation, and Balance Sheet to all be in balance. They are always off by the 50% of the meals.

If I manual enter the Book Income to match my books the Income Reconciliation and Retained Earnings can be appropriately balanced. However, the Balance Sheet is out of balance.

When I go into the Balance Sheet and follow the link to Quick Entry, the total Assets match our books; however, the manually entered amount from the Income Reconciliation is used for the Retained Earnings in the calculation for Your Liabilities and Capital. This creates a difference in the Ending Assets and Ending Liabilities, Capital and Retained Earnings. Note this difference is equal to the total meals amount when I do it this way.

If I get the Balance Sheet in balance, the Income and Retained Earnings are out of balance by the 50% of the meals expense.

[tagteam]

You most likely will have to use Forms Mode if the Step-by-Step will not accommodate the figures you are entering and/or your specific scenario.

[byrnt]

I have the same issue, and manually entering in Forms Mode does not get the sheet to balance. I'm spending HUGE time trying to get TurboTax Business to reflect accurate numbers. It's continuing to show retained earnings as negative and the Balance Sheet out of balance even though net income is positive. It continues to show schedule M-1 out of balance unless I give up and remove the perfectly allowed deduction for 50% of meals. It's as if the balance sheet forces you to underreport deductions because of the demand that it balance or else TT will not e-file your return. I'm also having the issue that Support sent a reply to my post which didn't answer the question, but there are no responses to by followup clarification to help Support understand the problem. Lots of people having this balance problem - can anyone point to a working solution? TIA

[tagteam]

@byrnt 

Please read the response to your other post.

[byrnt]

Hi tagteam and thanks for your response! I just checked my original post, but don't find any responses. I'll keep checking.

[tagteam]

@byrnt 

The post, in essence, just stated that the nature of this Q&A forum makes resolving balance sheet issues difficult as it is typically necessary to see all of the relevant figures.

[Raeka]

I cannot get TurboTax to allow me to input my cash distributions in the M-2 form. I have a negative retained earnings. I have completed our stock basis. My CPA (who uses different software) states there is no reason that this should be happening. Turbo Tax shows the figure as "distributions in excess of retained earnings" at bottom of Schedule M-2/Retained Earnings Memo Smart Worksheet" on line G. It will not allow me to put it on Line E which is line for "Less Dividends and Distributions" and which needs to be subtracted to make my balance sheet balance by increasing the Negative number.