Form 1065 U.S. Return of Partnership Income, Schedule L (Balance Sheet), Schedule M-1, and Schedule M-2 are required if criteria is met on Schedule B, Other Information, Question 4 (Question 6 in tax year 2017 and prior). 

The Schedule B Question 4 requirements: 

  • Total receipts for the tax year were less than $250,000.
  • Total assets at the end of the tax year were less than $600,000.
  • Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions).
The program will not automatically mark this question "Yes" but produces a Suggestion indicating this condition may apply.  

Follow these steps to answer yes to Schedule B Question 4:

  1. Go to the Input Return tab.
  2. Select General on the left-hand navigation bar.
  3. Click on Other Information (Schedule B).
  4. Click the checkbox for "Question 4" requirements are met.
If the "Question 4" requirements are met box is checked, then the following items will be suppressed:
  • Schedule L
  • Schedule M-1
  • Schedule M-2
  • Form 1065, page 1, Item F
  • Schedule K-1, Item L

To print these items even when the "Question 4" requirements are met box is checked:

  1. Go to the Input Return tab
  2. On the left-side navigation bar, click on Balance Sheet, M-1, M-2.
  3. Click on Balance Sheet Miscellaneous.
  4. Check the box Force Schedules L, M-1 and M-2 to print.
 

Related Topics

Form 1065 Schedule K-1 Item L Partners' Capital Account Analysis is Blank
Entering and Calculating the Schedule M-1
1065 - Calculating Schedule M-2 Line 3 when Generating a Schedule M-3