Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More
Section references are to the Internal Revenue Code unless otherwise noted.
2011
Table of Contents
- General Instructions
- What's New
- Purpose of Schedule
- Where To File
- Who Must File
- Other Issues Affecting Schedule M-3 Filing Requirements
- Other Form 1120 Schedules Affected by Schedule M-3 Requirements
- Entity Considerations for Schedule M-3
- Consolidated Schedule M-3 Versus Consolidating Schedules M-3 for Form 1120 Groups
- Completion of Schedule M-3 and Certain Allocations, Limitations, and Carryovers
- Specific Instructions for Part I
- 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. Questions Regarding Income Statement Period and Restatements
- Line 3. Questions Regarding Publicly Traded Voting Common Stock
- Line 4a. 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 Foreign Disregarded Entities, Other Includible U.S. Disregarded Entities, and 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 10a. Intercompany Dividend Adjustments To Reconcile to Line 11,Line 10b. Other Statutory Accounting Adjustments To Reconcile to Line 11, and Line 10c. Other Adjustments To Reconcile to Amount on Line 11
- Line 11. Net Income (Loss) per Income Statement of Includible Corporations
- Line 12. Total Assets and Liabilities of Entities Included or Removed on Part I, Lines 4, 5, 6, and 7
- Specific Instructions for Parts II and III
- General Format of Parts II and III
- Reporting Requirements for Parts II and III
- Part II. Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return
- 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. Section 78 Gross-Up
- Line 5. Gross Foreign Distributions Previously Taxed
- Line 6. Income (Loss) From Equity Method U.S. Corporations
- Line 7. U.S. Dividends Not Eliminated in Tax Consolidation
- Line 8. Minority Interest for Includible Corporations
- Line 9. Income (Loss) From U.S. Partnerships and Line 10. Income (Loss) From Foreign Partnerships
- Line 11. Income (Loss) From Other Pass-Through Entities
- Line 12. Items Relating to Reportable Transactions
- Line 13. Interest Income
- Line 14. Total Accrual to Cash Adjustment
- Line 15. Hedging Transactions
- Line 16. Mark-to-Market Income (Loss)
- Line 17. Cost of Goods Sold
- Line 18. Sale Versus Lease (for Sellers and/or Lessors)
- Line 19. Section 481(a) Adjustments
- Line 20. Unearned/Deferred Revenue
- Line 21. Income Recognition From Long-Term Contracts
- Line 22. Original Issue Discount and Other Imputed Interest
- Line 23a. Income Statement Gain/Loss on Sale, Exchange, Abandonment, Worthlessness, or Other Disposition of Assets Other Than Inventory and Pass-Through Entities
- Line 23b. Gross Capital Gains From Schedule D, Excluding Amounts From Pass-Through Entities
- Line 23c. Gross Capital Losses From Schedule D, Excluding Amounts From Pass-Through Entities, Abandonment Losses, and Worthless Stock Losses
- Line 23d. Net Gain/Loss Reported on Form 4797, Line 17, Excluding Amounts From Pass-Through Entities, Abandonment Losses, and Worthless Stock Losses
- Line 23e. Abandonment Losses
- Line 23f. Worthless Stock Losses
- Line 23g. Other Gain/Loss on Disposition of Assets Other Than Inventory
- Line 24. Capital Loss Limitation and Carryforward Used
- Line 25. Other Income (Loss) Items With Differences
- Line 26. Total Income (Loss) Items
- Line 27. Total Expense/ Deduction Items
- Line 28. Other Items With No Differences
- Line 29a. 1120 Subgroup Reconciliation Totals
- Line 29b. PC Insurance Subgroup Reconciliation Totals
- Line 29c. Life Insurance Subgroup Reconciliation Totals
- Line 30. Reconciliation Totals
- Part III. Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return—Expense/
Deduction Items
- Lines 1 Through 6. Income Tax Expense
- Line 7. Foreign Withholding Taxes
- Line 8. Interest Expense
- Line 9. Stock Option Expense
- Line 10. Other Equity-Based Compensation
- Line 11. Meals and Entertainment
- Line 12. Fines and Penalties
- Line 13. Judgments, Damages, Awards, and Similar Costs
- Line 14. Parachute Payments
- Line 15. Compensation With Section 162(m) Limitation
- Line 16. Pension and Profit-Sharing
- Line 17. Other Post-Retirement Benefits
- Line 18. Deferred Compensation
- Line 20. Charitable Contribution of Intangible Property
- Line 21. Charitable Contribution Limitation/Carryforward
- Line 22. Domestic Production Activities Deduction
- Line 23. Current Year Acquisition or Reorganization Investment Banking Fees
- Line 24. Current Year Acquisition or Reorganization Legal and Accounting Fees
- Line 25. Current Year Acquisition/Reorganization Other Costs
- Line 26. Amortization/Impairment of Goodwill
- Line 27. Amortization of Acquisition, Reorganization, and Start-Up Costs
- Line 28. Other Amortization or Impairment Write-Offs
- Line 29. Section 198 Environmental Remediation Costs
- Line 31. Depreciation
- Line 32. Bad Debt Expense
- Line 33. Corporate Owned Life Insurance Premiums
- Line 34. Purchase Versus Lease (for Purchasers and/or Lessees)
- Line 35. Research and Development Costs
- Line 36. Section 118 exclusion
- Line 37. Other Expense/ Deduction Items With Differences
- Line 38. Total Expense/ Deduction Items
- Part I. Financial Information and Net Income (Loss) Reconciliation
- Instructions for Schedule M-3 (Form 1120) - Additional Material
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