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This article applies to:

  • Product: UltraTax CS
  • Return type: 1120 Corporation,1065 Partnership

Balance sheet is out of balance due to book/tax depreciation difference

A balance sheet can be out of balance because the book depreciation needs to be equal to the tax depreciation.
UltraTax CS generates Schedule M-1 adjustments based on the book or tax differences in the asset module. Making the book and tax treatments identical often removes unneeded M-1 adjustments.
  • If Schedule M-1 still contains depreciation adjustments, review data entry on the
    Ms
     or
    Mc
    screens, located under the
    Balance
     folder. Be sure the
    Force
     fields on the
    Book/Tax Information
     section of the input screen don't contain any amounts.
  • If you also use Fixed Assets CS, you can use the Fixed Assets CS Template client to make the book and tax treatments identical for all clients.

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