Remove Schedule M-1 book-tax difference

Before you follow these steps, be sure to review your asset data entry and the IRS instructions to make sure the book-tax difference isn’t required.
  1. Go to the
    Ms
    screen (for 1120S) or the
    M1M2
    screen (for 1065) in the
    Balance Sheet
    folder.
  2. In the
    4797 gain or loss - book
    input field, enter
    0
    (zero) to remove the entire book-tax difference, or enter the amount you want to report on Schedule M-1.
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