| The purpose of this article is to help you prepare Form | | | | and the total asset amount gets reported in Item F. If |
| 1120S, Page 1, Item F, which asks you to report the | | | | that's the case, the Item F amount should be the same |
| total assets of your corporation. Read on to find out | | | | as the amount on Schedule L, Line 15, Column (d), |
| whether or not your corporation is required to show an | | | | which is the total asset line from the Balance Sheet. |
| amount in this field, and if so, where to get that number. | | | | A Word of Warning. |
| Item F Reporting Requirements. | | | | Now that you know the requirements for Item F, |
| Here's some potentially good news for smaller | | | | please give this suggestion some serious consideration: |
| businesses: If the corporation's total receipts and its | | | | Most smaller corporations will not be required to |
| total assets are both less than $250,000, the | | | | prepare a Balance Sheet for the corporate tax return; |
| corporation is not required to put an amount in the Item | | | | nor will those smaller corporations be required to put a |
| F field. | | | | number in Item F. But there is good reason for you to |
| Here's the reason why: corporations with receipts and | | | | do a Balance Sheet anyway, even if you don't show |
| assets under $250,000 are also not required to | | | | the numbers on the return. |
| complete Schedule L or Schedule M-1, both of which | | | | What is the purpose of a Balance Sheet? It serves a |
| are found on Page 4 of Form 1120S. Schedule L is the | | | | critical function in the life of any business by providing a |
| Balance Sheet, which is a financial report that lists the | | | | snapshot of the corporation's financial condition at any |
| assets, liabilities and shareholder equity of the | | | | given point in time. It lists the assets and liabilities of the |
| corporation. So, if you don't have to prepare the | | | | company. Shouldn't every business know how much it |
| Balance Sheet (which includes the total asset amount), | | | | owns and how much it owes? Absolutely. So please |
| then you also don't have to show that total asset | | | | don't let the Form 1120S filing requirements stop you |
| amount on Page 1, Item F. | | | | from keeping a complete set of books. The success |
| Of course, just the opposite is also true: if your | | | | of your business depends on knowing the numbers, |
| corporation's receipts and assets are greater than | | | | regardless of how big or small they may be. |
| $250,000, Schedules L and M-1 must be completed, | | | | |