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Suppressing the 1065 balance sheet in Lacerte

SOLVEDby IntuitLacerte Tax81Updated August 10, 2021

When the requirements for Form 1065, Schedule B, Question 4 are met, the balance sheet information isn't required with the return, per the Instructions for Form 1065.

In this case, the following items will be suppressed:

  • Schedule L
  • Schedules M-1 / M-2
  • Form 1065, page 1, Item F
  • Schedule K, Item L

What are the requirements for Question 4?

To meet the requirements for Form 1065, Schedule B, Question 4, the client must answer yes to all four of the following conditions:

  • The partnership's total receipts for the tax year were less than $250,000.
  • The partnership's total assets at the end of the tax year were less than $1 million.
  • Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
  • The partnership is not filing and is not required to file Schedule M-3.

If "Yes", the partnership isn't 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.

How do I answer "yes" for Question 4 in the program?

 

It's possible, but not recommended, to follow the steps below without meeting the conditions of Question 4, resulting in the balance sheet information being removed from the form.

Follow these steps to indicate that Question 4 requirements are met:

  1. Go to the Detail tab.
  2. Select Screen 5, Other Information (Schedule B).
  3. Locate the Other Information (Schedule B) section.
  4. Mark the checkbox labeled "Question 4" requirements are met.
    • If you leave this field blank, the program assumes the requirements weren't met.
    • Checking this box will suppress the following items:
      • Schedule L
      • Schedules M-1 / M-2
      • Form 1065, page 1, Item F
      • Schedule K, Item L

Can I still print the balance sheet information?

If you mark the checkbox labeled Question 4 requirements are met but still want to print the above items, go to Screen 25, Balance Sheet Miscellaneous. Enter a 1 in the field labeled Schedules L, M-1, and M-2: 1=force, 2=when applicable [O].

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