Schedule M-1 gain or loss on installment sale dispositions with prior section 179 in Lacerte

When assets with prior section 179 have been disposed of with a current year installment sale Lacerte generates the Schedule M-1 adjustment using the following calculation:

• Sales Price
• Plus: Adjusted basis, calculated as:
  • Cost/Basis
  • Minus: Previous Section 179 Expense
  • Minus: Depreciation Allowed/Allowable
• Minus: Gross Profit (6252, Line 16)
• Plus: Installment Sale Income (6252, line 24)

If you want to adjust or remove the M-1 adjustment, you can override the amount by:

1. Open the return to the Detail tab
2. Go to the Schedule M-1 screen:
   • Partnership: Screen 27.1
   • S-Corporation: Screen 31.1
3. Scroll down to the Income Recorded on Books Not Included on Schedule K (-) section
4. Enter the Gain (loss) on dispositions of section 179 assets [O]
   • -1 can be used to remove the amount