Schedule M-1 Depreciation Adjustment (Partnership Corporate S Corporation) in ProConnect Tax

Problem Description

How do I make the program automatically compute the book/tax difference on the M-1?

Solution Description

1. Go to the Balance Sheet Miscellaneous screen:
2. Locate the Book Depreciation subsection.
3. Select or enter an amount in, Current year book depreciation (Ctrl+T or amount) (if applicable).
4. Locate the Book Amortization subsection.
5. Select or enter an amount in, Current year book amortization (Ctrl+T or amount) (if applicable).
6. Locate the Book Depletion subsection.
7. Select or enter an amount in, Current year book depletion (Ctrl+T or amount) (if applicable).

• If the book depreciation is greater than the tax, an adjustment for the difference will print on Schedule M-1 line for Expenses recorded on books this year not included on Schedule K (1065, Schedule M-1, line 4) and (1120S, Schedule M-1, line 3) or Expenses recorded on books this year not deducted on this return (1120, Schedule M-1, line 5).
• If the book depreciation is less than the tax depreciation calculated by the program, an adjustment for the difference between book and tax will show on Schedule M-1 line for Deductions included on Schedule K not charged against book income this year (1065, Schedule M-1, line 7) and (1120S, Schedule M-1, line 6) or Deductions on this return not charged against book income (1120, Schedule M-1, line 8).