Generating or suppressing Schedule M-3 in Lacerte

Lacerte will automatically generate the Schedule M-3 based on the requirements from the form instructions.

Table of contents:

Who must file per the Corporate Schedule M-3 form instructions:

• Any domestic corporation or group of corporations required to file Form 1120 that reports on Form 1120, Schedule K, Balance Sheets per Books, total assets at the end of the corporation's tax year that equal or exceed $10 million.
• A corporation filing a non-consolidated Form 1120 that reports on Schedule L total assets that equal or exceed $10 million.
• Any U.S. consolidated tax group consisting of a U.S. parent corporation and additional includible corporations listed on Form 851 required to file Form 1120, that reports on Schedule L total consolidated assets at the end of the tax year that equal or exceed $10 million.

Back to Table of Contents

Who must file per the Partnership Schedule M-3 form instructions:

• The partnership's total assets at the end of the tax year are $10 million or more.
• The partnership's adjusted total assets at the end of the tax year are $10 million or more.
• An entity that is a reportable entity partner with respect to the partnership 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.

Back to Table of Contents

Who must file per the S Corporate Schedule M-3 form instructions:

• Any corporation required to file Form 1120S that reports on Schedule L of Form 1120S total assets at the end of the corporation's tax year that equal or exceed $10 million.

Back to Table of Contents

How to force or suppress the Corporate Schedule M-3:

1. Go to Screen 39, Schedule M-1, M-3.
2. Click on Schedule M-3 from the top left navigation panel. (This will take you to Screen 39.2.)
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

Back to Table of Contents

How to force or suppress the Partnership Schedule M-3:

1. Go to Screen 27, Schedule M-1, M-3 (Book-Tax Adj.).
2. Click on Schedule M-3 from the top left navigation panel. (This will take you to Screen 27.2.)
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

Back to Table of Contents

How to force or suppress the S-Corporate Schedule M-3:

1. Go to Screen 31, Schedule M-1, M-3.
2. Click on Schedule M-3 from the top left navigation panel. (This will take you to Screen 31.2.)
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

Back to Table of Contents