I've always completed Schedule M2 for my S Corp, even though assets/rev,$250k. IRS guidelines do not state that M2 does not need to be filed. TT skips M1 & M2. Why so?

Forum|Forum|7 years ago
June 1, 2019
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This is my first year using TT for Business. I've used a CPA, and then HR Block. CPAs (and the IRS guidelines for completing the 1120s) gave me the impression that the M2 can't be skipped. Even if your assets and revenues are less than $250k. Am I not understanding this correctly? I know I can skip Schedule L, but M2?

TurboTax Business Windows

Best answer by DexterS

There are a bunch or questions for you to answer on form 1120.

Question 13 on page 4 of Form 1120 says

"Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets are the end of the tax year less the $250,000?

If yes the corporation isn't required to complete Schedules L, M-1 and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax yea."

So, you're fine not preparing M2 if you meet the above criteria.

D

DexterSAnswer

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