DATA-ENTRY EXAMPLES FOR STATE ALLOCATION INFORMATION UltraTax/1041

Transcription

1 DATA-ENTRY EXAMPLES FOR STATE ALLOCATION INFORMATION UltraTax/1041 Introduction... 1 Using the state allocation spreadsheet... 1 Spreadsheet for Screens C, F, and Rent... 1 Spreadsheet for Screens K1 and K1T... 2 Entering interest and dividends... 4 Processing tips... 6 Introduction This document presents an overview of the state allocation spreadsheet and the data-entry requirements for state processing in UltraTax CS. Use the examples in this document to process state allocations. Using the state allocation spreadsheet UltraTax/1041 provides a state allocation spreadsheet for Screens C, F, Rent, K1, and K1T. This spreadsheet is available only if more than one state is attached to the client s return. To open the state allocation spreadsheet and enter data, choose View > Allocation or click the Allocation button on the input screen. You may also right-click and choose Allocation from the context menu, or press CTRL+B. If allocation data is entered in the spreadsheet, the Allocation button text changes from blue to red. Spreadsheet for Screens C, F, and Rent The state allocation spreadsheet illustrated below is typical of the spreadsheet available from Screens C, F, and Rent for a return with multiple states attached. Figure 1: State allocation spreadsheet Screens C, F, and Rent Data-Entry Examples for State Allocation Information: UltraTax/1041 TL Copyright by Thomson Reuters. All rights reserved. Page 1

2 Notice the following: Although Michigan is not the first state alphabetically, Michigan s column appears first. This is an example of primary state behavior. UltraTax CS considers Michigan to be the primary state for this business unit, because the postal code entered for this unit is MI. UltraTax CS determined that the client is a nonresident of all other attached states. Because these states are not considered primary, UltraTax CS automatically assigns zero income to these states for this business unit. Non-primary states are listed in alphabetical order. For your reference, the last column displays the business unit s related federal amounts. If you process multiple state returns for a client, a column for each state appears in the allocation spreadsheet. If you process more states than those that appear on screen, use the horizontal scrollbar at the bottom of the spreadsheet to access the additional state columns. The allocation spreadsheet can accommodate as many states as can be processed in UltraTax CS. Click the Print or Preview button in the state allocation spreadsheet dialog to print or preview allocation information for future reference. If licensed, you can print reports to FileCabinet CS. Click the Cancel button in the state allocation spreadsheet dialog if, upon initial entry in the spreadsheet, you do not want to preserve the initial default calculations. After allocation amounts are saved to the spreadsheet, the button text changes from Cancel to Clear Allocation. Click the Clear Allocation button to delete all amounts for this activity in the State allocation spreadsheet. Spreadsheet for Screens K1 and K1T The state allocation spreadsheet available for Screens K1 and K1T includes additional features that are not available in the allocation spreadsheet for Screens C, F, and Rent. TL Page 2 Data-Entry Examples for State Allocation Information: UltraTax/1041 Copyright by Thomson Reuters. All rights reserved.

3 Figure 2: State allocation spreadsheet Screen K1 Notice the following: The state columns contain disabled (gray) fields and enabled (white) fields. Some states have more enabled fields than do other states. The spreadsheet contains a separate tab for each input screen section. When you click one of the Allocation buttons from within Screen K1, K1-2, or K1-3, UltraTax CS opens the spreadsheet with the appropriate tab displayed. If federal data is present in an input screen section and if you applied a percentage for allocation, UltraTax CS places a black dot in the upper-left corner of the related spreadsheet tab to indicate that allocated data exists. If you process a return with Alabama, Arkansas, California, Hawaii, Pennsylvania, or Wisconsin attached, a state-specific Total Source column is present, as well as a state-specific Source column for state source amounts. You can allocate partnership, S Corporation, estate, and trust income by specific component income, loss, expense, and deduction amounts. On a state-by-state basis, you can apply a percentage, enter specific amounts, or apply a percentage and then adjust one or two amounts (if needed). Data-Entry Examples for State Allocation Information: UltraTax/1041 TL Copyright by Thomson Reuters. All rights reserved. Page 3

4 In the following example, Michigan and California source amounts have been allocated by percent, and those amounts are in blue. The California Total Source amounts have been entered as specific amounts, and those amounts are in black. For Arizona, none of the amounts are state source, so all the fields display zero. Figure 3: State allocation spreadsheet Screen K1T Entering interest and dividends Use the statement dialogs for the Interest income and Dividends fields in Screens K1 and K1T to complete all allocations for interest and dividends. Note: The postal code for the activity is not the default postal code for the interest and dividends data. If no postal code is entered in the statement dialog for an interest or dividend item, UltraTax CS automatically assigns the postal code entered in the State of residency field on Screen You should enter the appropriate postal code in the statement dialogs for the Interest income and Dividends fields, if different from the state of residency postal code on Screen TL Page 4 Data-Entry Examples for State Allocation Information: UltraTax/1041 Copyright by Thomson Reuters. All rights reserved.

5 You should pay particular attention to the InState Source ($ or %) field. UltraTax/1041 states do not include interest or dividend amounts with in-state source income unless an in-state source amount or percentage is entered. In the example, percent of the First Savings Bank entry is Arizona state source. Figure 4: Interest Income statement dialog Screen K1 When you process returns with multiple states attached, you should pay attention to the Postal Code field. UltraTax/1041 states include only interest or dividend amounts with their specific postal code. In the example, because the client s return includes both Arizona and California, a second line has been added with an S (state) in the first column so the First Savings Bank entry is also included in the California return. Note: The federal return disregards entries coded S. Data-Entry Examples for State Allocation Information: UltraTax/1041 TL Copyright by Thomson Reuters. All rights reserved. Page 5

6 Processing tips You should keep in mind the following processing tips when you enter multiple-state data. UltraTax CS displays a column for each state attached to the return in the allocation spreadsheet. If you delete a state from a client s return, UltraTax CS also deletes the related allocation amounts within the return for that state, including any of that state s related entries in the State, if different fields on federal Screens K1 and K1T. If you process another state return, UltraTax CS automatically assigns another primary state to the State, if different fields. If the deleted state is later re-attached to the client s return, you must re-enter the allocated amounts. If you change a postal code on an allocable federal screen after you enter an allocation, you may need to re-enter the allocation amounts for affected states. If you change the federal income and expense amounts after you enter an allocation, you should review any state allocation spreadsheet amounts that were present and re-allocate the new federal net income for that unit if necessary. If you delete an allocable federal screen, UltraTax CS also deletes the related state allocation amounts for that unit. Some states calculate with pre-passive amounts. Interest and dividend information is not affected by any state allocation spreadsheet entries. If you leave the Postal Code field in the statement dialogs for the Interest income or Dividends field blank, amounts transfer only to the state of residency entered on federal Screen The postal code entered on Screen K1 or K1T has no bearing on determining state source amounts for interest and dividend income. For nonresident returns, in the statement dialog for the Interest income or Dividends field, enter the in-state source amount or percentage to indicate the amount that UltraTax CS should use for that state s return. Calculated data entered in the SID fields on the input screens transfers into the state allocation grid as blue data. If an amount is entered to overrule the calculated amount, the overrule amount appears in black. To delete the overruled amount and restore the original transferred amount, right-click the field and choose Delete overrule or enter the original amount in the field. To confirm the accuracy of the overruled amount, right-click the field and choose Acknowledge overruled data. UltraTax CS then disables the acknowledge functionality from the right-click menu. To restore the original amount later, you will need to manually enter that amount. If desired, you can set a user preference to mark fields for which you overruled the transferred amounts and to list all overruled amounts in the Diagnostics window. To set this user preference, choose Setup > User Preferences and mark the Distinguish overruled input screen fields checkbox in the Data Entry tab. TL Page 6 Data-Entry Examples for State Allocation Information: UltraTax/1041 Copyright by Thomson Reuters. All rights reserved.