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Suspend Calculation of Schedules L M-1 and M-2 for Form 1065 1120S or 1120

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Intuit

Suspend Calculation of Schedules L M-1 and M-2 for Form 1065 1120S or 1120

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:

For 1065 Partnership returns

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 the box 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. In the Completion of Schedules L, M-1, M-2, etc Smart Worksheet check No to the question listed.

For 1120S S Corporation returns

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. After line 10b check the box that states: Check this box to suspend the Schedule L, and M-1 calculations.

For 1120 Corporation Returns

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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