Purpose of Schedule L
Schedule L calculates standard deduction for tax filers reporting state/local real estate taxes, vehicle purchase taxes, or net disaster loss. It lists partnership assets, liabilities, equity on first and last days of tax year.
Schedule M-2
Schedule M-2 reports shareholder equity changes for corporations issuing preferred shares or changing share structure.
Requirements for Schedule L Filing
Who should file Schedule L? Partnerships and multi-member LLCs taxed as partnerships. Not subject to federal income tax. Reports revenue and expenses from partnership operation.
Form 1120S Schedule L
What is form 1120S Schedule L used for? To complete the Schedule L, from the main menu of the tax return (Form 1120S) select Schedule L. The first section, the Asset Menu, will open.
Filing Form 1120
How to fill out Form 1120? You can file Form 1120 either electronically or by mail. The format follows basic accounting principles for completing a balance sheet.
Reporting on Schedule L Balance Sheets
What is reported on Schedule L balance sheets per books? The information from the corporation’s books and records. It is not solely generated by the tax return. Represents assets, liabilities, equity on first and last day of tax year.