Question
1065 Schedule L not matching Schedule M-2
Hi Everyone,
I've searched and I can't seem to find my answer. I only do a few small partnership returns a year, but this one needs a Schedule L. I've got everything balanced except Schedule L, Line 22 doesn't match Schedule M-2, line 9. The difference is the book to tax adjustments, depreciation not taken on the books and some non 100% meals on the books. My understanding is the M-2 is tax basis and Sch L is book basis. So some differences would be normal? Is that correct? Do I need to make a note or adjustment somewhere?
Thanks in advance for your time.
