NC-PE: NC Additions and Deductions for Pass-Through Entities, Estates, and Trusts (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form NC-PE reports North Carolina additions to and deductions from federal income for pass-through entities, estates, and trusts for 2024. It totals these adjustments for entry on the entity’s applicable North Carolina tax return.
Who files this form
A pass-through entity, estate, or trust must attach Form NC-PE to its applicable North Carolina tax return if it must add certain items to federal income or is allowed to deduct certain items from federal income.
The 2024 form includes North Carolina adjustments applicable to individuals, but not every adjustment applies to every entity. Check the instructions for your specific entity.
What you'll need
- Both pages of the 2024 Form NC-PE, even if you complete only one part.
- The applicable North Carolina tax return to which Form NC-PE must be attached.
- The instructions for your entity’s North Carolina return, which explain which adjustments apply and where to enter the totals.
The form also asks for the entity’s legal name and federal employer ID number.
How to file
- Enter the entity’s legal name and federal employer ID number. Use capital letters. On page 2, enter the first 10 characters of the legal name.
- Complete the applicable additions in Part A. Add lines 1 through 15 and enter the total on line 16 and the appropriate line of the North Carolina tax return.
- Complete the applicable deductions in Part B. For line 41, add lines 17 through 22, 23f, 24f, 25 through 37, 38c, 39, and 40. Enter that total on line 41 and the appropriate line of the North Carolina tax return.
- Attach both pages of Form NC-PE to the applicable tax return, even if you completed only one part.
See the instructions for your entity’s return for details about where to enter the totals.
Common mistakes
- Attaching only one page. Both pages are required, even if you complete only one part. The Department may be unable to process the return if both pages are not attached.
- Assuming every adjustment applies to your entity. The form includes adjustments applicable to individuals that may not apply to every entity. See the instructions for your specific entity.
- Not using capital letters. The form directs filers to use capital letters.
Questions people ask
Do I need to attach both pages if I only have deductions?
Yes. Both pages must be attached even if you complete only one part of the form.
Does every adjustment on Form NC-PE apply to my entity?
No. Form NC-PE is identical to Form D-400, Schedule S and includes all North Carolina adjustments applicable to individuals. The form says these adjustments may not apply to every entity and directs you to your entity’s instructions.
Where do the addition and deduction totals go?
Enter total additions on line 16 and total deductions on line 41. Also enter each total on the appropriate line of the North Carolina tax return. See the instructions for the applicable return for details.
Where is taxed pass-through entity income or loss listed?
Taxed pass-through entity loss is listed in Part A on line 14. Taxed pass-through entity income is listed in Part B on line 38, with separate fields for North Carolina sourced and non-North Carolina sourced income.