How does Ln. 10a Buildings and other depreciable assets b) Less accumulated depreciation on Form 1120S Schedule L supposed to be booked in relation to a client's books/records? How also does it relate to Ln. 14 of the Form 1120S? Could someone please refresh my memory?
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Schedule L Balance Sheet
The Schedule L Balance Sheet should be the "Book" balance sheet.
There should be an M-1 adustment for the difference between the book and the tax depreciation. This difference does not carry to line 14.
Line 14 comes from form 4562.
If you list depreciation in the COGS on form 1125-A (this is typically done for manufacturers), then the amount on line 14 is adjusted so as to avoid "double dipping".
Happy tax season
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My tax software takes the difference between ending and beginning accumulated depreciation (per books) as the book depreciation, and automatically carries it to line 3 or line 6 of the M-1.Comment
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