Please assist in checking an S Corporation 1120S Tax Return. For the form 1120S, I am struggling to reconcile Line 18 on the schedule k with Line 8 on the Schedule M-1. I have provided all relevant information needed for the project. I do not know where I have gone wrong in getting the numbers to match.

Transcribed Image Text:

TYPE OR Number, street, and room or suite no. If a P.O. box, see instructions. 456 TEAL COURT PRINT C Check if Sch. M-3 attached City or town, state or province, country, and ZIP or foreign postal code GREEN BAY, WI Form 1120-S Department of the Treasury Internal Revenue Service U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Go to www.irs.gov/Form1120S for instructions and the latest information. 2023, ending For calendar year 2023 or tax year beginning A S election effective date 1/1/2011 B Business activity code. number (see instructions) 315290 Name UP AND COMING, LLC OMB No. 1545-0123 2023 , 20 D Employer identification number 39-8593585 E Date incorporated 2/4/2008 F Total assets (see instructions) $ G Is the corporation electing to be an S corporation beginning with this tax year? See instructions. Yes No H Check if: (1) Final return (2) Name change (3) Address change (4) Amended return (5) S election termination Enter the number of shareholders who were shareholders during any part of the tax year J Check if corporation: (1) Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes Caution: Include only trade or business income and expenses on lines 1a through 22. See the instructions for more information. 2 1a Gross receipts or sales 320,000 b Less returns and allowances SALES RETURNS c Balance 1c 320,000 2 Cost of goods sold (attach Form 1125-A) . 2 75,000 Income 3 Gross profit. Subtract line 2 from line 1c 3 245,000 4 Net gain (loss) from Form 4797, line 17 (attach Form 4797) 4 5 Other income (loss) (see instructions-attach statement) 5 6 Total income (loss). Add lines 3 through 5 6 245,000 Deductions (see instructions for limitations) % 1 7 Compensation of officers (see instructions-attach Form 1125-E) 7 45,000 8 Salaries and wages (less employment credits) 8 9 10 11 234567802222 Repairs and maintenance Bad debts Rents. 12 Taxes and licenses. 9 10 11 15,000 13 Interest (see instructions) 14 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 15 Depletion (Do not deduct oil and gas depletion.) 16 Advertising 17 Pension, profit-sharing, etc., plans 18 Employee benefit programs 19 Energy efficient commercial buildings deduction (attach Form 7205) Other deductions (attach statement) 21 Total deductions. Add lines 7 through 20 Ordinary business income (loss). Subtract line 21 from line 6 22120722222 9,000 13 14 2,266 15 16 5,000 18 5,000 19 12,000 93,266 151,734 23a Excess net passive income or LIFO recapture tax (see instructions) 23a b Tax from Schedule D (Form 1120-S) 23b C Add lines 23a and 23b (see instructions for additional taxes) 23c Tax and Payments 24a Current year's estimated tax payments and preceding year's overpayment credited to the current year 24a b Tax deposited with Form 7004 24b C Credit for federal tax paid on fuels (attach Form 4136) 24c d Elective payment election amount from Form 3800 24d Z Add lines 24a through 24d 24z 2222 25 Estimated tax penalty (see instructions). Check if Form 2220 is attached 25 26 27 28 Sign Amount owed. If line 24z is smaller than the total of lines 23c and 25, enter amount owed Overpayment. If line 24z is larger than the total of lines 23c and 25, enter amount overpaid Enter amount from line 27: Credited to 2024 estimated tax Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 26 27 Refunded. 28 Here Signature of officer Print/Type preparer's name Date Title Preparer's signature Date Paid Preparer Firm's name Use Only Firm's address May the IRS discuss this return with the preparer shown below? See instructions. Yes No Check if self-employed Firm's EIN Phone no. PTIN For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H Form 1120-S (2023) TYPE OR Number, street, and room or suite no. If a P.O. box, see instructions. 456 TEAL COURT PRINT C Check if Sch. M-3 attached City or town, state or province, country, and ZIP or foreign postal code GREEN BAY, WI Form 1120-S Department of the Treasury Internal Revenue Service U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Go to www.irs.gov/Form1120S for instructions and the latest information. 2023, ending For calendar year 2023 or tax year beginning A S election effective date 1/1/2011 B Business activity code. number (see instructions) 315290 Name UP AND COMING, LLC OMB No. 1545-0123 2023 , 20 D Employer identification number 39-8593585 E Date incorporated 2/4/2008 F Total assets (see instructions) $ G Is the corporation electing to be an S corporation beginning with this tax year? See instructions. Yes No H Check if: (1) Final return (2) Name change (3) Address change (4) Amended return (5) S election termination Enter the number of shareholders who were shareholders during any part of the tax year J Check if corporation: (1) Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes Caution: Include only trade or business income and expenses on lines 1a through 22. See the instructions for more information. 2 1a Gross receipts or sales 320,000 b Less returns and allowances SALES RETURNS c Balance 1c 320,000 2 Cost of goods sold (attach Form 1125-A) . 2 75,000 Income 3 Gross profit. Subtract line 2 from line 1c 3 245,000 4 Net gain (loss) from Form 4797, line 17 (attach Form 4797) 4 5 Other income (loss) (see instructions-attach statement) 5 6 Total income (loss). Add lines 3 through 5 6 245,000 Deductions (see instructions for limitations) % 1 7 Compensation of officers (see instructions-attach Form 1125-E) 7 45,000 8 Salaries and wages (less employment credits) 8 9 10 11 234567802222 Repairs and maintenance Bad debts Rents. 12 Taxes and licenses. 9 10 11 15,000 13 Interest (see instructions) 14 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 15 Depletion (Do not deduct oil and gas depletion.) 16 Advertising 17 Pension, profit-sharing, etc., plans 18 Employee benefit programs 19 Energy efficient commercial buildings deduction (attach Form 7205) Other deductions (attach statement) 21 Total deductions. Add lines 7 through 20 Ordinary business income (loss). Subtract line 21 from line 6 22120722222 9,000 13 14 2,266 15 16 5,000 18 5,000 19 12,000 93,266 151,734 23a Excess net passive income or LIFO recapture tax (see instructions) 23a b Tax from Schedule D (Form 1120-S) 23b C Add lines 23a and 23b (see instructions for additional taxes) 23c Tax and Payments 24a Current year's estimated tax payments and preceding year's overpayment credited to the current year 24a b Tax deposited with Form 7004 24b C Credit for federal tax paid on fuels (attach Form 4136) 24c d Elective payment election amount from Form 3800 24d Z Add lines 24a through 24d 24z 2222 25 Estimated tax penalty (see instructions). Check if Form 2220 is attached 25 26 27 28 Sign Amount owed. If line 24z is smaller than the total of lines 23c and 25, enter amount owed Overpayment. If line 24z is larger than the total of lines 23c and 25, enter amount overpaid Enter amount from line 27: Credited to 2024 estimated tax Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 26 27 Refunded. 28 Here Signature of officer Print/Type preparer's name Date Title Preparer's signature Date Paid Preparer Firm's name Use Only Firm's address May the IRS discuss this return with the preparer shown below? See instructions. Yes No Check if self-employed Firm's EIN Phone no. PTIN For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H Form 1120-S (2023)