UltraTax CS
Question
How do I specify which items transfer from an 1120 S Corporation Schedule M-1 to Schedule M-2?
Answer
UltraTax CS transfers Schedule M-1 items that have a code entered in the Sch M-2 column of the following Schedule M-1 statement dialogs in Screen Ms.
- Taxable income not on books
- Book expenses not deducted
- Income on books not on return
- Return deductions not on books
Also, if you enter code A, O, or R in the Carry book/tax differences to Schedule M-2 field in Screen Ms, UltraTax CS transfers the tax accrual adjustment, rounding adjustment, and Schedule M-1 book / tax differences for depreciation, depletion, amortization, organization or start-up deduction, and Form 4797 gain or loss to Schedule M-2.
Notes
- If you want UltraTax CS to transfer the Schedule M-1 differences to the same Schedule M-2 account for all S Corporation clients, select the desired account in the Setup > 1120 Corporation > Federal tab > Other Return Options dialog > Return Presentation tab, and do not complete the Sch M-2 column or the Carry book/tax difference to Schedule M-2 field.
- If you are preparing Schedule M-3 in lieu of Schedule M-1, see Specifying items to transfer from an 1120 S Corporation Schedule M-3 to Schedule M-2.
- You can force or delete amounts automatically transferred to Schedule M-2 in Screen StmtS3 in the Review folder.
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