Question
Schedule M-1 DRD Increasing Net Income on Line 1
Hello all,
On Schedule M-1 of an 1120 C-Corp Tax Return:
I'm running into an issue where I input the Dividends Received Deduction in "Deductions not Charged Against Book Income" section. This is for a Book - Tax adjustment. Pro Connect says you have to manually enter this adjustment which makes sense.
However, when I input the $40,000 DRD it also increases the Net Income (loss) per books on line 1 thereby completely throwing off the M-1 and M-2 calculations.
Any ideas? Your time is greatly appreciated.
