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Federal input screens

Screen Mc - Income Reconciliation and Retained Earnings (1120)

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Schedule M-1 - Reconciliation of Income (Loss)

Complete Schedules M-1 and M-2 when not required
Enter
X
 in this field to force the completion of Schedules M-1 and M-2 when total receipts for the tax year and total assets at the end of the year are less than $250,000.
To set this option for all future clients, choose Setup, 1120 Corporation, Federal tab, then Other Return Options, and mark the
Complete Schedule M-1 and C Corporation M-2 when receipts and assets are less than $250,000
 checkbox.
note
If this field is not available to mark in the Mc screen, the option in Setup, 1120 Corporation, Federal tab, then Other Return Options is already selected.
Suppress printing Form 1120, Page 6 when not required
Enter
X
 in this field to suppress the printing of Form 1120, Page 6 when total receipts for the tax year and total assets at the end of the year are less than $250,000.
To set this option for all future clients, choose Setup, 1120 Corporation, Federal tab, then Other Return Options, and mark the
Suppress printing of Form 1120, Page 6 when receipts and assets are less than $250,000
 checkbox.
note
If this field is not available to mark, the option in Setup, 1120 Corporation, Federal tab, then Other Return Options is already selected.
Net income (loss) per books from accounting product
The net income (loss) from the accounting application is displayed for informational purposes only. To use this amount on Schedule M-1, enter the amount displayed in the
Net income (loss) per books
 field.
Net income (loss) per books
If this field is blank, Schedule M-1, Net income (loss) per books automatically calculates by adjusting the amount on Form 1120, Taxable income before net operating loss deduction and special deductions.
PPP loan forgiveness
The amount of PPP loan forgiveness is excluded from taxable income. The PPP loan forgiveness on Schedule M-1 is reported as income on books not on return.
4797 gain (loss)
If you have a section 1231 gain or loss from a pass through entity that is included in your book income, enter the total book gain or loss in the Force field to prevent UltraTax CS from generating a Schedule M-1 adjustment. If you have a gain or loss on assets that were disposed of in a casualty or theft, or were traded in a like kind exchange, and the gain or loss is included in your book income, enter the total book gain or loss in the Force field.
Expenses paid with PPP loan proceeds (State use only)
The expenses paid with PPP loan proceeds are deductible for federal tax purposes. This field is for state purposes only and is used for states that do not conform to the federal treatment of the expenses paid with PPP loan proceeds.

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