scrop - m1

[Unregistered]

Scorp balance sheet

On sch M1 I show Meal as an adj

Does sec 179 and/or charity go on sch M1?

I have $2000 diff in asset and Liability.

Thanks

[Unregistered]

Excess Scholarship Funds

Parents filing MFJ have two children ages 19 and 21. Both are students and
received scholarship funds in excess of cost for tuition, required fees, books
etc. Neither child has any other income and will not be filing tax returns.
Does the excess scholarship funds become taxable to the parents?

[Unregistered]

Parents filing MFJ have two children ages 19 and 21. Both are students and
received scholarship funds in excess of cost for tuition, required fees, books
etc. Neither child has any other income and will not be filing tax returns.
Does the excess scholarship funds become taxable to the parents?

Did you got mixedup? Or you have another question besdies mine?

[OldJack]

As you know Sch-M1 would normally show the difference between book and tax return income. That would include entries for the 50% of meals not allowed as a deduction and the difference between book depreciation and tax return which in a S-corp is going to include the §179 deduction carried forward but not the current year §179 unless not treated that way on the books. Charity would only be considered for the excess over 10% allowed. Other non-deductible expenses would be a line item on M1.

[Matt Sova]

S Corp M-1

The M-1 for an S-Corp shows the difference between Book Income and K-1 Income. The Section 179 goes to schedule K as does Charitable contributions. Only the 50% M&E amount shows up on the M-1 in your example.

I do not know why you would have a $2000 difference on the balance sheet.

Matt