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Balance sheet

When UltraTax CS calculates Schedule M-1 and M-2 automatically

Whether UltraTax CS calculates Schedules M-1 and M-2 automatically depends on total receipts for the tax year and year-end total assets.
For some schedules, the threshold for automatic calculation is $250,000. For others, the schedule is $25,000. However, you can force UltraTax CS to calculate schedules under the threshold.
note
UltraTax CS doesn't complete Schedule M-1 when total assets are $10 million or greater for the following:
  • C Corporations
  • Cooperative associations
  • Foreign corporations
  • Property and casualty insurance companies
  • S Corporations
Automatic calculation threshold
Type of corporation
Threshold
1120
receipts more than $250,000
1120-C
receipts more than $250,000
Cooperative Associations
receipts more than $250,000
1120-S
receipts more than $250,000
1120-F
receipts more than $25,000
1120-PC
receipts more than $25,000
1120-REIT
receipts more than $25,000
If you're an S Corporation and have accumulated E and P, you have to maintain the accumulated adjustments account (AAA). This determines the tax effect of distributions you made.
If you don't have accumulated E and P, you don't have to main the AAA. However, the IRS recommends you do so. If you don't have to maintain the AAA, but don't want to print S Corporation Schedule M-2, go to the
Ms
 screen and select the
Suppress printing of Schedule M-2 field
 in the
Balance Sheet
 folder.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1120 Corporation
  • Subject: balance-sheet-m1-m3

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