Preparing New Mexico returns when the state and federal groups are the same

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Use this procedure to ensure the correct preparation of New Mexico consolidated and combined income tax returns if the members of the New Mexico unitary business group are the same as those included in the federal consolidated group.

  1. Add New Mexico to the parent client, the eliminations client, and the applicable subsidiary clients. Complete all data entry for these member clients. Each member's state return should be complete and correct before proceeding to the next step.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. The same apportionment method must be used by the parent client and the applicable subsidiary clients. Apportionment data entry is accessed through View > Apportionment.

  2. Add New Mexico to the federal consolidated client.

    Note: When adding New Mexico to a consolidated federal client, the state automatically defaults to being a consolidated return.

    If the state is added as a C Corporation to a federal consolidated group, the consolidated functionality does not take place. The amounts from each member are not consolidated or combined, and the consolidated or combined forms are not available.

  3. Review all New Mexico consolidated or combined client input screens and complete any necessary remaining data entry. For each category not marked in the File > Client Properties > Advanced Properties > Options dialog, enter the necessary data in the applicable input screens.

    Note: If a category is not marked, enter the data on the applicable input screens in the consolidated or combined client. For a list of categories and related input screens, see Categories and related New Mexico input screens.

    Any changes made to the File > Client Properties > Advanced Properties > Options dialog affect both the federal and state return.

  4. Click the Consol/Combined folder in the New Mexico folders block. Complete the necessary information in Screen NMCAdj.
  5. To make manual adjustments in other areas of the return, click the Group View button or press F7 in the input screen field you want to adjust, and then enter the adjustment amount in the Group View dialog.
  6. To change amounts entered in the New Mexico parent, eliminations, or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake when you entered the apportionment of the first subsidiary, close the consolidated client and reopen the first subsidiary. Choose View > Apportionment for that client and correct the data. Close the subsidiary client and reopen the consolidated client. The correct amount is now a part of the consolidated group return.
  7. Print and review the New Mexico consolidated or combined tax return.

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