1065-US: Entering information for Schedule M-3 (FAQ)

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Question

Where do I enter information for Schedule M-3?

Answer

Use Screens M3, M3-2, and M3-3 in the Balance Sheet folder to complete Schedule M-3. Depending on the nature of the difference, each account may have either a temporary or permanent difference and should be entered according to the adjusting entry made on the taxpayer's books.

Use Screen M1M2 in the Balance Sheet folder to enter the book amounts for depreciation, section 179 expense, amortization, and Form 4797 gain or loss for use in calculating the book / tax differences on Schedule M-3. Use the Ptr Alloc buttons in Screen M3-2 and M3-3 to allocate these amounts to partners when using a ratio other than the profit percentages.

Note: UltraTax CS ignores all other data entered in the Reconciliation of Income (Loss) per Books section in Screen M1M2 when Schedule M-3, Parts II and III are being completed.

Use Screen 8916A in the Balance Sheet folder to complete Form 8916-A. UltraTax CS automatically transfers the calculated amounts from Form 8916-A to Schedule M-3 as follows:

Use Screens K1, K1-2, and K1-6 in the K1 1065, 1041 folder to enter book amounts and to enter or modify the M-3 statement detail for each passthrough entity. UltraTax CS automatically transfers the passthrough information to Schedule M-3. Page 2, lines 7, 8, and 9 based on the type and address of the passthrough entity. Use the Ptr Alloc buttons in Screen M3-2 to allocate these amounts to partners using a ratio other than profit percentages.

Related topic: Schedule M-3 FAQs (1065)

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