Instructions For Form 3 - Massachusetts Partnership Return

Line 14. Other Income or Loss

Part 2. Gross income

If reporting other income or loss from U.S. Form 1065, Schedule K,

Note: Enter all losses as “0.”

line 11, attach a statement and explain. If any income or loss from

U.S. Form 1065, Schedule K, line 11 is granted capital gains treat-

2. Gross receipts or sales from U.S. Form 1065,

ment by the federal government, omit it here and include it in lines

line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Ordinary income from U.S. Form 1065, line 4 . . . .

33 through 39, as applicable.

4. Net farm profit from U.S. Form 1065, line 5 . . . . . .

Line 15. State, Local and Foreign Income and

5. Other income from U.S. Form 1065, line 7. . . . . . .

Unincorporated Business Taxes or Excises

6. Sale or exchange of property from U.S. Form

4797, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter total state, local and foreign income and unincorporated busi-

7. Ordinary gain or loss from U.S. Form 4797,

ness taxes or excises. These taxes are deductible for U.S. tax pur-

line 18b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

poses, but are not deductible in Massachusetts.

8. Gain from disposition of property from U.S. Form

Line 17. Section 1231 Gains or Losses

4797, line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Total gross rents U.S. Form 8825, line 17 . . . . . . .

Enter any gains or losses from the sale, exchange or involuntary

10. Other gross rental income (loss) from U.S.

conversion of Section 1231 property included in line 16 above. These

Schedule K, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

amounts should be included in lines 35, 36 and 38 as applicable.

11. Interest from U.S. Schedule K, line 5 . . . . . . . . . .

Line 19. Other Adjustments

12. Dividends from U.S. Schedule K, line 6a . . . . . . .

13. Royalties from U.S. Schedule K, line 7. . . . . . . . .

Report and describe any other adjustments to Massachusetts part-

14. Sale of collectibles from U.S. Schedule K, line 9b

nership income and deductions not reported elsewhere on Form 3.

15. Other income or loss from U.S. Schedule K,

For Massachusetts tax purposes, a partnership is allowed only those

line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

expense deductions that an individually owned business is allowed.

16. Total. Add lines 2 through 15. Enter the result here and on line 1

Deductions that are itemized by an individual on Schedule A of U.S.

of Form 3. If total is $50,000 or greater, stop. You must file elec-

Form 1040, are not allowed. The deduction for a net operating loss

tronically. If total is less than $50,000, continue with

worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

carryover or carryback is not allowed to the partnership nor to an in-

dividual under Massachusetts income tax law.

Part 3. Ordinary loss from trade or business activities

Also report the deductions for 10% of the costs of renovating a

17. Enter amount of loss from U.S. Form 1065, line 22 as a positive

qualifying abandoned building located in an Economic Opportunity

amount. If the amount of loss is $50,000 or greater, stop. You

Area. Attach a statement detailing the location and cost of renovat-

must file electronically. If loss is less than $50,000, continue

with worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ing the qualifying abandoned building. The building must be des-

ignated as abandoned by the Economic Assistance Coordinating

Part 4. Receipts or losses from the sale of stock and securities

Council. For further information, contact the Massachusetts Office

18. Enter the amount from U.S. Schedule K, line 8 . . .

of Business Development, One Ashburton Place, Room 2101, Bos-

19. Enter the amount from U.S. Schedule K, line 9a

ton, MA 02108.

20. Total. Add lines 18 and 19. If the receipts or losses are $100,000

or greater, stop. You must file electronically. If total is less than

The partnership should also provide each partner with the amount of

$100,000, partnership may file paper return . . . . . . .

the partner’s share of the deductible costs of renovating a qualifying

abandoned building. Each partner should use this amount to complete

Part 1. Massachusetts Information

Forms 1 or 1-NR/PY, Schedule E, line 57; or Form 2.

Line 9. Withholding Amount

Line 21. Net Income or Loss from Rental Real

Enter the amount withheld by this partnership on behalf of its partners.

Estate Activity(ies)

Enter the net income or loss from rental real estate activity(ies) from

Line 10. Payments made with composite return

U.S. Form 1065, Schedule K, line 2.

Enter the payments made by this partnership as part of a composite

return filing of behalf of non-resident partners who are members of

Line 24. Net Income or Loss from Other Rental

this partnership or members of upper-tier entities that participate in

Activity(ies)

the composite return of this entity.

Enter the net income or loss from other rental activity(ies) from U.S.

Form 1065, Schedule K, line 3c.

Line 11. Credit for amounts withheld by

lower-tier entity(ies)

U.S. Interest, Dividend and Royalty

Enter the amount withheld on behalf of this partnership, and reported

Income

to this partnership, by lower-tier pass-through entities.

Line 27. U.S. Interest, Dividend and Royalty

Line 12. Payments made with a composite filing

Income, Not Including Capital Gains

by lower-tier entity(ies).

Add U.S. Form 1065, Schedule K, lines 5, 6a and 7 and enter the

Enter the amount of composite payments reported to this partnership

total in line 27.

by lower-tier entities.

Line 28. Interest on U.S. Debt Obligations

Massachusetts Ordinary Income or Loss

Enter the total amount of interest on U.S. debt obligations reported in

line 27 which is taxable by the federal government, but is tax-exempt

Line 13. Ordinary Income or Loss

in Massachusetts.

Enter the total amount of ordinary income or loss from U.S. Form

1065, line 22.

Instructions For Form 3 - Massachusetts Partnership Return - 2012 Page 6

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