S corp gross profits over $250,000

[oceanlovin'ea]

This is a first for me. So bear with a question that seems simple. I just want to make sure I am doing the return correctly.

Company's gross profits (line 1A) were over $250,000. Their assets are not over $250,000. Is the only thing that changes because their gross income was over $250,000 is that I have to file the schedule L and M-1? I usually do those schedules but don't file with the tax return.

Thanks

Linda EA

[kathyc2]

This is a first for me. So bear with a question that seems simple. I just want to make sure I am doing the return correctly.

Company's gross profits (line 1A) were over $250,000. Their assets are not over $250,000. Is the only thing that changes because their gross income was over $250,000 is that I have to file the schedule L and M-1? I usually do those schedules but don't file with the tax return.

Thanks

Linda EA

Correct. Both gross receipts and assets need to be less than 250K to be exempt from filing L and M1. If receipts are 500K or more, you also need a 1125E.

[oceanlovin'ea]

Thanks so much. I have always had little s corps. This guy had a big contract last year.

Linda, EA