Table of Contents

• Instructions for Schedule M-3 (Form 1065) - Introductory Material
• General Instructions
  • Purpose of Schedule
  • Where To File
  • Who Must File
    • Reportable Entity Partner Reporting Responsibilities
    • Other Issues Affecting Schedule M-3 Filing Requirements
  • Other Form 1065 Schedules Affected by Schedule M-3 Requirements
    • Schedule L
    • Schedule M-2
    • Entity Considerations for Schedule M-3
    • Completion of Schedule M-3
• Specific Instructions
  • Item D. Reportable Entity Partner
  • Part I. Financial Information and Net Income (Loss) Reconciliation
    • When To Complete Part I
    • Line 1. Questions Regarding the Type of Income Statement Prepared
    • Line 2 and 3. Questions Regarding Income Statement Period and Restatements
    • Line 4. Worldwide Consolidated Net Income (Loss) per Income Statement
    • Line 5. Net Income (Loss) of Nonincludible Foreign Entities
    • Line 6. Net Income (Loss) of Nonincludible U.S. Entities
    • Line 7. Net Income (Loss) of Other Includible Entities
    • Line 8. Adjustment to Eliminations of Transactions Between Includible Entities and Nonincludible Entities
    • Line 9. Adjustment to Reconcile Income Statement Period to Tax Year
    • Line 10. Other Adjustments To Reconcile to Amount on Line 11
    • Line 11. Net Income (Loss) per Income Statement of the Partnership.
  • Parts II and III
    • General Reporting Information
    • When To Complete Columns (a) and (d)
    • When To Complete Columns (b) and (c)
    • Reporting Requirements for Parts II and III
  • Part II. Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return
    • Lines 1 Through 6. Additional Information for Each Entity
    • Line 1. Income (Loss) From Equity Method Foreign Corporations
    • Line 2. Gross Foreign Dividends Not Previously Taxed
    • Line 3. Subpart F, QEF, and Similar Income Inclusions
    • Line 4. Gross Foreign Distributions Previously Taxed
    • Line 5. Income (Loss) From Equity Method U.S. Corporations
    • Line 6. U.S. Dividends
    • Line 7. Income (Loss) From U.S. Partnerships and Line 8. Income (Loss) From Foreign Partnerships
    • Line 9. Income (Loss) From Other Pass-Through Entities
    • Line 10. Items Relating to Reportable Transactions
    • Line 11. Interest income
    • Line 12. Total Accrual to Cash Adjustment
    • Line 13. Hedging Transactions
    • Line 14. Mark-to-Market Income (Loss)
    • Line 15. Cost of Goods Sold
    • Line 16. Sale Versus Lease (for Sellers and/or Lessors)
    • Line 17. Section 481(a) Adjustments
    • Line 18. Unearned/Deferred Revenue
    • Line 19. Income Recognition From Long-Term Contracts
    • Line 20. Original Issue Discount and Other Imputed Interest
    • Line 21a. Income Statement Gain/loss on Sale, Exchange, Abandonment, Worthlessness, or Other Disposition of Assets Other Than Inventory and Pass-Through Entities
    • Line 21b. Gross Capital Gains From Schedule D, Excluding Amounts From Pass-Through Entities
    • Line 21c. Gross Capital Losses From Schedule D, Excluding Amounts From Pass-Through Entities, Abandonment Losses, and Worthless Stock Losses
    • Line 21d. Net Gain/Loss Reported on Form 4797, Line 17, Excluding Amounts From Pass-Through Entities, Abandonment Losses, and Worthless Stock Losses
    • Line 21e. Abandonment Losses
    • Line 21f. Worthless Stock Losses
    • Line 21g. Other Gain/Loss on Disposition of Assets Other Than Inventory
    • Line 22. Other Income (Loss) Items With Differences
    • Line 24. Total Expense/ Deduction Items
    • Line 25. Other Items With No Differences
    • Line 26. Reconciliation Totals. Combine lines 23 through 25.
  • Part III. Reconciliation of Net Income (Loss) per Income Statement of Partnerships With Income (Loss) per Return — Expense/ Deduction Items
    • Lines 1 Through 4. Income Tax Expense
    • Line 5. Equity-Based Compensation
    • Line 6. Meals and Entertainment
    • Line 7. Fines and Penalties
    • Line 8. Judgments, Damages, Awards, and Similar Costs
    • Line 9. Guaranteed Payments
    • Line 10. Pension and Profit-Sharing
    • Line 11. Other Post-Retirement Benefits
    • Line 12. Deferred Compensation
    • Line 14. Charitable Contribution of Intangible Property
    • Line 15. Organizational Expenses as per 1.709-2(a)
    • Line 16. Syndication Expenses as per 1.709-2(b)
    • Line 17. Current Year Acquisition/Reorganization Investment Banking Fees
    • Line 18. Current Year Acquisition/Reorganization Legal and Accounting Fees
    • Line 19. Amortization/ Impairment of Goodwill
    • Line 20. Amortization of Acquisition, Reorganization, and Start-Up Costs
    • Line 21. Other Amortization or Impairment Write-Offs
    • Line 22. Section 198 Environmental Remediation Costs
    • Line 23a. Depletion—Oil & Gas
    • Line 23b. Depletion—Other than Oil & Gas
    • Line 24. Intangible Drilling and Development Costs (IDC)
    • Line 25. Depreciation
    • Line 26. Bad Debt Expense
    • Line 27. Interest Expense
    • Line 28. Purchase Versus Lease (for Purchasers and/or Lessees)
    • Line 29. Other Expense/ Deduction Items With Differences
    • Line 30. Total Expense/ Deduction Items