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Form 1065-B North Carolina: What You Should Know

Form 1065. If you do not know how to identify Line 1 on Schedule K, federal, read the instruction, Form 1065, for how to enter the total. If Schedule M, North Carolina income tax return. Line 1 must have the total of all business profits line 2 and the total of line 9. Line 2 — Enter each line 3 on one line. Line 2 is your total of line 3, line 3; line 3 is not a business profit line. If line 3 does not have a “1” at the end, you are not entitled to claim the loss on line 1 on your joint federal return. Line 3 may not include the value of any inventory property, a business property, or any real property. It may not include other items such as income earned from a small business or certain capital gain property. If line 3 does include one or more line 9 items, the combined total of line 9 for all line 9 items is entered on line 3. If you do not know how to identify line 3 for Schedule M, North Carolina, read the instruction, Form 1065, for how to enter the line 3. If line 3 does not have a “1” at the end, you are not entitled to claim the loss on line 1 on your joint federal return. If line 3 does not include one or more line 9 items, the combined total of line 9 for all line 9 items is entered on line 3. Enter each line 4 on one line. Line 4 is your total of line 4, line 4; line 4 is not a business profit line. It may not include the value of any inventory property, a business property, or any real property. It may not include other items such as income earned from a small business or certain capital gain property. If line 4 does include one or more line 9 items, the total of line 9 for each line 9 item is entered on line 4. Enter each line 5 on one line. Line 5 is your total of line 5, line 5; line 5 is not a business profit line. It may not include the value of any inventory property, a business property, or any real property. It may not include other items such as income earned from a small business or certain capital gain property. If line 5 does include one or more line 9 items, the total of line 9 for each line 9 item is entered on line 4. Enter each line 6 on one line.

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