Follow these steps to enter tax-exempt in the Partnership module:
- Go to Screen 27, Schedule M-1, M-3 (Book-Tax Adj.).
- In the Section list, select Income Recorded on Books not Included on Schedule K.
- Enter any applicable amount(s) in the appropriate field(s).
- Go to the Forms tab.
- Make sure the amounts on the Schedule M-1, Schedule M-3 and the Schedule K/K-1 (line 18) are correct.