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Entering nondeductible expenses on Form 1065 in Lacerte

SOLVEDby IntuitLacerte Tax3Updated July 27, 2021

You can enter nondeductible expenses in 3 locations in the partnership module in Lacerte:

1. Enter nondeductible expenses on Screen 27, Schedule M-1, M-3

  1. In Detail, select Screen 27, Schedule M-1, M-3 (Book Tax Adj.).
  2. Under Expenses Recorded on Books not included on Schedule K, enter your nondeductible expenses in the Other field. Screenshot highlighting input fields for nondeductible expenses in Lacerte

2. Enter nondeductible expenses on Screen 20, Passthrough K-1's:

  1. In Detail, select Screen 20, Passthrough K-1's.
  2. Under Line 18Tax-Exempt Income and Nondeductible Expenses, enter your nondeductible expenses in the Nondeductible expenses (C) field.Where to enter nondeductible expenses in Passthrough K-1's in Lacerte

3. Enter nondeductible expenses on Screen 22, Other Schedule K Items

  1. In Detail, select Screen 22, Other Schedule K Items.
  2. Under Tax-Exempt Income and Nondeductible Expenses, enter your nondeductible expenses in the Nondeductible expenses [A] field.Where to enter nondeductible expenses on Screen 22, Other Schedule K Items in Lacerte

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