1120 - C corp return

AAE · ‎12-08-2024

Hello,

I am working on a 1120 for 2023 for a client and I am having trouble balancing schedules m-1, m-2 and L without having to move some numbers around. They had an asset they sold. On the books it is income, but for tax purposes they had a loss. Is there anything special I need to do in order to get this right or just balance it out myself?

Thanks!

Jim-from-Ohio · ‎12-09-2024

All my clients have book depreciation = tax depreciation but I will give this a shot. Balance Sheet on 1120 should be a "Book" Balance sheet, not a Tax Balance sheet. That is the first thing I would look at. Then you are probably going to have a depreciation difference on M-1. And lastly, the gain/.loss difference on M-1.