Before you start
- To determine why an S-Corporate balance sheet is out of balance, view the balance sheet on Form 1120S, page 4, and determine which line or lines is incorrect or causing the balance sheet to be out of balance.
- Some lines are direct input and output, and some are automatically calculated by Lacerte unless an entry is made in Screen 29, Balance Sheet for that item.
- The balance sheet (Schedule L) and Schedule M-1 aren't required if the corporation’s total receipts for the tax year and its total ending assets are less than $250,000. See Form 1120S instructions.
- To force these schedules when not required,
- enter a 1 in Screen 30, Balance Sheet Miscellaneous, Schedule L and M-1: 1=force, 2=when applicable under the Other section.
- for all clients under Settings > Options > Tax Return > Federal Tax Options by selecting Force in Schedules L and M-1.
Review these asset and liability items for tips to resolve an out of balance sheet:
Items that are directly entered in Lacerte
To review and make changes to these items, go to Screen 29, Balance Sheet, then select Assets or Liabilities and Equity.