Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Calculation

Automatic calculations for Schedule M-3

Schedule M-3 automatic calculations

Show all hidden content
UltraTax CS/1065 automatically transfers book and tax amounts and calculates the necessary temporary or permanent difference for the following items on Schedule M-3.
Income (loss) from U.S. partnerships
Income (loss) from foreign partnerships
Income (loss) from other passthrough entities
Income statement gain/loss on sale of assets other than inventory, excluding amounts from passthrough entities
Gross capital gains from Schedule D, excluding amounts from passthrough entities
Gross capital losses from Schedule D, excluding amounts from passthrough entities
Net gain/loss reported on Form 4797, line 17
Other gain/loss on disposition of assets other than inventory, excluding amounts from passthrough entities
Foreign current income tax expense, excluding amounts from passthrough entities
Meal expenses from all activities
Guaranteed payments from all activities
Pension and profit-sharing, excluding amounts from passthrough activities
Charitable contributions of cash and tangible property, excluding amounts from passthrough entities
Other amortization or impairment write-offs from all activities
Depletion—other than oil and gas
Intangible drilling and development costs, excluding amounts from passthrough entities
Depreciation from all activities, other than Form 1125-A
Bad debt expense
Conservation expenses from Schedule F and the Farm Rental Income and Expenses Worksheet
Tax credit adjustment for Forms 6765, 8820, 8826, 8846, 8881, 8882, 8932, 8941, and 8994
Rounding adjustment, if applicable

Form 8916-A automatic calculations

Show all hidden content
UltraTax CS/1065 also automatically transfers book and tax amounts and calculates the necessary temporary or permanent difference for the following items on Form 8916-A.
Other section 263A costs
Depreciation, Form 1125-A
Other items with no differences
Tax-exempt interest income, excluding amounts from passthrough entities
Other interest income, excluding amounts from passthrough entities
Other interest expense

Adjustments

In addition to the automatic calculations above, if you select
Calculate adjustment to balance Schedule M-3
 on the M3 screen and
Other items with no differences
 in the input screen is blank, UltraTax CS/1065 makes the following adjustments.
  • If
    Other items with no differences
     on the M3-2 screen is blank, UltraTax CS calculates the difference between the income (loss) on Form 1065, Page 5, Analysis of Income, line 1, and Schedule M-3, Part II, line 26(d), and enters an adjustment on Schedule M-3, Part II, line 25, columns (a) and (d).
  • If
    Other items with no differences
     on the 8916A screen is blank, UltraTax CS calculates the difference between the cost of goods sold on Form 1125-A, line 8, and Form 8916-A, Part I, line 8, and enters an adjustment on Form 8916-A, Part I, line 7, columns (a) and (d).
Because of the complexity of Schedule M-3, you'll need to carefully review these amounts and make changes if you need to.
On the M3-2, M3-3, and 8916A screens, an asterisk (*) shows which fields have automatic calculations. To override a calculation, enter an amount, including 0 (zero), in the field.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close