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
- In Detail, select Screen 27, Schedule M-1, M-3 (Book Tax Adj.).
- Under Expenses Recorded on Books not included on Schedule K, enter your nondeductible expenses in the Other field.
2. Enter nondeductible expenses on Screen 20, Passthrough K-1's:
- In Detail, select Screen 20, Passthrough K-1's.
- Under Line 18, Tax-Exempt Income and Nondeductible Expenses, enter your nondeductible expenses in the Nondeductible expenses (C) field.
3. Enter nondeductible expenses on Screen 22, Other Schedule K Items
- In Detail, select Screen 22, Other Schedule K Items.
- Under Tax-Exempt Income and Nondeductible Expenses, enter your nondeductible expenses in the Nondeductible expenses [A] field.