Question

In which situation would a partnership be required to complete Schedule L. M-1, and

m-2 on page 5 of Form 1065?

Answer 1

A partnership is required to complete the Schedule L, M-1, and m-2 in the Form 1065 if the following four conditions are not satisfied.

The following conditions are as follows:

1. In a tax year if the total receipt of the partnership is found to be lesser than $250,000

2. At the end of the tax year if the total assets of the partnership are found to be lesser than $1 million

3. If the schedules K-1 are filed along with the return and it is further made available to the partners on or prior to the due date with the extension of the partnership return

4. Schedule m-3 is not necessary to file if the filing of the partnership is not occurring.