This article applies to:

Remove Schedule M-1 book-tax difference

Before you follow these steps, be sure to review your asset data entry and the IRS instructions to make sure the book-tax difference isn’t required.

Go to the

Ms

screen (for 1120S) or the

M1M2

screen (for 1065) in the Balance Sheet
folder.

In the 4797 gain or loss - book
input field, enter

0

(zero) to remove the entire book-tax difference, or enter the amount you want to report on Schedule M-1.

note

Alternatively, for 1120S returns, you can go to the

StmtS2

screen in the Review
folder and enter

0

(zero) in the Form 4797 Book/Tax Difference Book Income
field.