Schedule M-2 Book income off by Guaranteed Payments in a 2020 1065 return in CCH Axcess™ Tax and CCH® ProSystem fx® Tax.
- Article Type:
- Problem Resolution
- Last Modified:
- 06/20/2023
Symptoms
Schedule M-2 book income off by guaranteed payments.
Environment
- CCH ProSystem fx Tax
- CCH Axcess Tax
- 1065
Cause
N/A
Resolution
The Schedule K, line 4 - Guaranteed payments for services and capital will be automatically included in the calculation of the Schedule K-1, Item L, Current year net income(loss).
The following option is available with release 2020.02040 / 2020-2.4:
The following option is available with release 2020.02040 / 2020-2.4:
- Go to Partners > General Options worksheet.
- Expand Section 2 - Schedule K-1 Calculation Options.
- In Line 30 (Interview Form 5A, Box 94) - Code to include or exclude partners' guaranteed payments for services and capital from Schedule K-1, item L and Schedule M-2, select from the following options:
- Option 1 - Include all guaranteed payments in current year net income amounts - This is the default option and will include all guaranteed payments in the calculation of the current year net income(loss).
- Option 2 - Exclude all guaranteed payments from Schedule K-1, Item L and Schedule M-2 - No guaranteed payments will be included in the calculation of the current year net income(loss).
- Option 3 - Exclude guaranteed payments for services from Schedule K, Item L and Schedule M-2 – The guaranteed payments for services will be excluded from the calculation of the current year net income (loss).
- Option 4 - Exclude guaranteed payments for capital from Schedule K, Item L and Schedule M-2 - The guaranteed payments for capital will be excluded from current year net income (loss).
- Calculate the return.
- ProSystem fx® Office Manager > Configure Applications / CCH Axcess™ Dashboard > Application Links > Return Configuration Sets.
- Select the relevant Office Group / Return Configuration Set.
- Select Miscellaneous Options.
- In Field Reserved for future use 1, input applicable of Options 1-4 listed above.
- Select OK / Save and Close, to save this change.
- The option code will be the default selected the next time a return assigned to the Return Group / Return Configuration Set is opened and calculated.
Additional Information
N/A
Solution Id | 000244555/Schedule-M-2-Book-income-off-by-Guaranteed-Payments-in-a-2020-1065-return-in-CCH-Axcess-Tax-and-CCH-ProSystem-fx-Tax |
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