Common questions about partnership M-1 in Lacerte

The following are frequently asked questions about partnership M-1 in Lacerte:

The Form 1065 Schedule M-1, line 1, net income per books, is calculated as follows:

• Schedule M-1, line 9 income (loss)(Analysis of Net Income (Loss) per return, Line 1) Subtract Line 8 from Line 5.
• + Schedule M-1, Lines 6 & 7 (increases)
• -  Schedule M-1, Line 4 (decreases)
• = Schedule M-1, Line 1 (net income per books)

Lacerte will automatically generate most increases and decreases based on your entries throughout the return that indicate a difference between book and tax amounts. 

If you need to enter an M-1 adjustment manually, or override an automatic increase or decrease:

1. Go to Screen 27.1, Schedule M-1 (Book-Tax Adjustments).
2. There are many inputs and/or overrides that affect lines 2,3, 4, 6 & 7.
3. Lines 2, 3, 4, 6 & 7 do have the Jump to Input feature available.
4. To access the Jump to Input feature:
5. Click on the amount box for lines 2 & 3
6. Click on the dashed lines for Lines 4, 6 & 7

NOTE: The Jump to Input feature on Lines 3, 4a, 4b, & 7a will take you to input detail screens here than Screen 27.1. Adjustments can be made in those screens or in the corresponding inputs in Screen 27.1

• How does Lacerte calculate the Schedule M-1