Schedule M-1 ADDS back non-deductibles to tax-basis further reducing LOSS. Error: "Form 1120S p3-5: M-1, difference line - Schedule M-1 is out of balance by $-1433.00"

Forum|Forum|3 years ago
February 17, 2023
1 reply
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Book income is negative (loss). Sched M-1 correctly shows tax basis Loss after removing non-deductibles. However it ADDS back (positive) non-deductibles to the (negative) tax basis loss to calculate book income but instead reduces the loss by that amount instead of increasing the lass to book income/loss.

TurboTax Online

Best answer by nick@grbdesignbu

Thanks, but I think I solved the problem. I opened Forms and it displayed the M-1 schedule. I changed the sign on the non-deductible item from positive to negative. The recalculated book value was then correct and everything balanced. Review did not find any problems.

AliciaP1

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

At the top menu in the black line at the top of the page go to Online.

From the menu, select Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@nick@grbdesignbu

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