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Suspend calculation of Schedules L, M-1 and M-2 for Form 1065, 1120S or 1120 in ProSeries

by Intuit Updated 1 month ago

When both the gross receipts and total assets are less than the applicable threshold the Schedules L, M-1, and M-2 may not be required and can be suspended. See the thresholds and how to suspend the calculation for your return type:

Partnerships are not required to complete Schedules L, M1, and M2 when:

  • Gross receipts for the tax year were less than $250,000.
  • Total assets at the end of the tax year were less than $1,000,000.

To suspend the Schedule L, M1, and M2 calculations in the 1065 return:

  1. Open the 1065 Federal return.
  2. Go to Form 1065 Pages 1-3.
  3. Scroll down to the Schedule B on Page 2.
  4. Go to Line 6d and check Yes next to the line labeled: If Yes the partnership is not required to complete Schedules L, M-1, and M-2: Item F on page 1 of Form 1065: or item L on Schedule K-1.
  5. Check No to the question listed on the Completion of Schedules L, M-1, M-2, etc Smart Worksheet.

S Corporations are not required to complete Schedules L, M1, and M2 when:

  • Gross receipts for the tax year were less than $250,000.
  • Total assets at the end of the tax year were less than $250,000.

To suspend the Schedule L, M1, and M2 calculations in the 1120S return:

  1. Open the 1120S Federal return.
  2. Go to the 1120S Pages 1-2.
  3. Scroll down to the Schedule B on Page 2.
  4. On line 11b check the box that states: Check this box to suspend the Schedule L, and M-1 calculations.

Corporations are not required to complete Schedules L, M1, and M2 when:

  • Gross receipts for the tax year were less than $250,000.
  • Total assets at the end of the tax year were less than $250,000.

To suspend the Schedule L, M1, and M2 calculations in the 1120 return:

  1. Open the 1120 Federal return.
  2. Go to Form 1120 Pages 3-5.
  3. Scroll down to the Schedule K, Page 4.
  4. After Line 13, check the box labeled: Check here to suspend the Schedule L, M-1, and M-2 calculations.
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