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

For more depreciation resources, check out our Tax topics page for Schedule C where you'll find answers to the most commonly asked questions.

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

To generate a Schedule M-1 Depreciation difference:

1. Go to the Balance Sheet Miscellaneous screen:
   • Screen 25 (Partnership)
   • Screen 38 (Corporate)
   • Screen 30 (S Corporate)
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).

The adjustment amount on Schedule M-1 is calculated by Lacerte is the difference between the figure entered as Current year book depreciation, and the calculated tax depreciation as determined from inputs on the Depreciation screen (see Depreciation Schedule for breakdown per asset).

• 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).