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Federal input screens

Screen M3 - Schedule M-3 - Financial Information and Reconciliation (1065)

General Information

Enter
X
 to suppress printing of Schedule M-3. UltraTax CS automatically completes Schedule M-3 if the schedule is required to be filed or if any data is entered in the M3, M3-2, or M3-3 Screen. If Schedule M-3 is suppressed, UltraTax CS completes Schedule M-1.
Enter a
1
 to complete the Schedule M-1 instead of Schedule M-3, Parts II and III when filing Schedule M-3 and total assets at the end of the tax year are less than $50 million. Enter a
2
 to complete the Schedule M-3 in its entirety. Entry in this field is ignored and the Schedule M-3 will complete in its entirety if assets are $50 million or more.
UltraTax CS automatically transfers book and tax amounts and calculates the necessary temporary or permanent differences for a number of items on Schedule M-3 (indicated with an asterisk before the description in the M3-2, M3-3, and 8916A Screens). However, due to the complexities of Schedule M-3, UltraTax CS does not automatically transfer all items of income, expense, gain, or loss to Schedule M-3. Additional data entry may be necessary in Screens M3-2, M3-3, and/or 8916A to balance Schedule M-3 with Form 1065.
Enter
X
 to balance Schedule M-3. When you mark this field, UltraTax CS calculates the difference between the Net income (loss) on Form 1065, Page 5, Analysis of Income and Schedule M-3, Part II, line 26(d) and enters the amount on Schedule M-3, Part II, line 25, columns (a) and (d). Also, 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(d) and enters the amount on Form 8916-A, Part I, line 7, columns (a) and (d).
Adjusted total assets are defined as total assets at the end of the tax year plus capital distributions, losses, and adjustments that reduce total capital. UltraTax CS automatically calculates adjusted total assets on the Adjusted Total Assets Worksheet. Enter an amount, including 0 (zero), to use an amount different from the calculated amount.
Total receipts are defined as the sum of gross receipts or sales; all other income; income reported on Schedule K, lines 3a, 5, 6a, and 7; income or net gain reported on Schedule K, lines 8, 9a, 10, and 11; and income or net gain reported on Form 8825, lines 2, 19, and 20a. UltraTax CS automatically calculates total receipts. Enter an amount, including 0 (zero), to use an amount different from the calculated amount.
Enter the identifying number, name, and maximum percentage owned or deemed owned for each reportable entity partner, or select no more than two reportable entity partners in the Federal tab in the Partner Information window in Partner Data Entry. A reportable entity partner owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss on any day during the tax year of the partnership and was required to complete Schedule M-3 on its most recently filed U.S. income tax return.
For any tax year in which the partnership has more than two reportable entity partners, the partnership must provide all of the information for the two reportable entity partners having the largest maximum percentage of actual or deemed ownership for the tax year of the partnership.

Net Income (Loss) Reconciliation

UltraTax CS calculates worldwide consolidated total assets for Schedule M-3, Page 1, line 12a as the total end-of-year assets on Form 1065, Schedule L, plus the total assets of all entities included on Schedule M-3, Part I, lines 5a through 6b. Enter an amount, including 0 (zero), to override the calculated amount.
UltraTax CS calculates worldwide consolidated total liabilities for Schedule M-3, Page 1, line 12a as the total end-of-year liabilities on Form 1065, Schedule L, plus the total liabilities of all entities included on Schedule M-3, Part I, lines 5a through 6b. Enter an amount, including 0 (zero), to override the calculated amount.
Use the statement to enter the name, employer identification number, net income, total assets, and total liabilities from nonincludible foreign entities. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net loss from nonincludible foreign entities
 field and includes the total on Schedule M-3, Page 1, lines 12a and 12b.
Use the statement to enter the name, employer identification number, net loss, total assets, and total liabilities from nonincludible foreign entities. Enter losses as positive amounts. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net income from nonincludible foreign entities
 field and includes the total on Schedule M-3, Page 1, lines 12a and 12b.
Use the statement to enter the name, employer identification number, net income, total assets, and total liabilities from nonincludible U.S. entities. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net loss from nonincludible US entities
 field and includes the total on Schedule M-3, Page 1, lines 12a and 12c.
Use the statement to enter the name, employer identification number, net loss, total assets, and total liabilities from nonincludible U.S. entities. Enter losses as positive amounts. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net income from nonincludible US entities
 field and includes the total on Schedule M-3, Page 1, lines 12a and 12c.
Use the statement to enter the name, employer identification number, net income (loss), total assets, and total liabilities of other foreign disregarded entities. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net income (loss) of other US disregarded entities
 field and includes the total on Schedule M-3, Page 1, line 12d.
Use the statement to enter the name, employer identification number, net income (loss), total assets, and total liabilities of other U.S. disregarded entities. UltraTax CS combines total assets and liabilities entered in this field with the amounts entered in the
Net income (loss) of other foreign disregarded entities
 field and includes the total on Schedule M-3, Page 1, line 12d.
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