1065-US: Requirements for completing Schedule M-3, Parts II and III

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Question

What are the requirements for completing Schedule M-3, Parts II and III?

Answer

A partnership must complete Parts II and III if ending total assets are $50 million or more. A partnership is not required to complete Schedule M-3, Parts II and III if ending total assets are less than $50 million, or if the partnership is filing Schedule M-3 as a voluntary filer. If the partnership chooses not to complete Parts II and III and ending total assets are less than $50 million, Schedule M-1 must be completed.

  • To complete Schedule M-1 (instead of Schedule M-3, Parts II and III) for all clients, choose Setup > 1065 Partnership, click the Other Return Options button, and mark the Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III when total assets are less than $50 million checkbox.
  • To complete Schedule M-1 (instead of Schedule M-3, Parts II and III) or to override the global selection in the Other Return Options dialog on a client-by-client basis, select Yes or No in the Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III field in Screen M3.

Note: Entries in the Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III field in Screen M3 and the Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III when total assets are less than $50 million checkbox in Other Return Options will be ignored if total ending assets are $50 million or more.


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Schedule M-3 FAQs (1065)

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