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Line 3 Decoupling Modification from a Pass-through Entity Use line 3 for decoupling modifications reported by a pass-through entity. If the net change decreases taxable income enter as a negative amount -. 5. Net Decoupling Modification. If less than 0 enter as a negative amount -. 2. NOL Deductions. 3. Decoupling Modification from a Pass-through Entity. Enter the decoupling modification from the PTE on line 3 of Form 500DM. Also use this amount to adjust the income from the PTE on the pro...
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