Changes to MD Form 500DM for tax year 2025

For tax year 2025, you can no longer report a single total for PTE decoupling because the generic code "dp" is reserved and blocked out on Form 502SU.

Instead, the amount on Line 9 of your Form 500DM must be broken down and entered onto the corresponding lines of that same form based on the specific categories provided on your Maryland Schedule K-1 (510/511).

• PTE Statement: Your Pass-Through Entity is required to provide a breakdown of your share of the net decoupling modification by type (e.g., Depreciation, R&E Expensing, or Business Interest).
• Form 500DM Mapping: Enter each specific amount from your K-1 into the relevant lines of Form 500DM (Lines 1 through 8).
• Alpha Code Flow: Entering these amounts on their specific lines ensures they flow to your Form 502 or 502SU with the correct individual alpha codes (such as "l/bb" for depreciation, "da" for R&E, or "db" for interest limits) as required by the 500DM instruction chart.
• Please enter the adjustments in the MD 500DM input, or in the K-1 input screen in the MD section, in order to have the amounts flow thru the 500DM and to the Form 502 or 502SU with the correct alpha codes