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Entering tax-exempt interest on Form 1065 in Lacerte

by Intuit Updated 11 months ago

Follow these steps to enter tax-exempt in the Partnership module:

  1. Go to Screen 27, Schedule M-1, M-3 (Book-Tax Adj.).
  2. In the Section list, select Income Recorded on Books not Included on Schedule K.
  3. Enter any applicable amount(s) in the appropriate field(s).
  4. Go to the Forms tab.
  5. Make sure the amounts on the Schedule M-1, Schedule M-3 and the Schedule K/K-1 (line 18) are correct.
  6. Adjustments can be entered in Adjustments, Screen 40. If the Tax-exempt income is coming from a Passthrough it is entered in Passthrough K-1's, Screen 23

A 1065 needs to report Tax Exempt income for a variety of states. Where can I find the appropriate entries?

Tax exempt interest is entered in State Tax-exempt interest (U.S. bonds, T-bills, etc.) (screen 27.1, Schedule M-1) and should be sourced to the appropriate State.

Adjustments can be entered in Adjustments, Screen 40. If the Tax-exempt income is coming from a Passthrough it is entered in Passthrough K-1's, Screen 23.

Lacerte Tax

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