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

by Intuit Updated 1 month ago

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
Lacerte Tax

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