Preparing Idaho returns when the state and federal groups are different and there are members with at-risk or passive activitie

Alerts and notices
Leave feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Use this procedure to ensure the correct preparation of Idaho combined income tax returns if the members of the Idaho unitary business group are not the same as those included in the federal consolidated group and the federal group contains members with at-risk or passive activities.

  1. Clone the parent, subsidiary, and eliminations clients. Open each member one at a time, choose File > Save As, enter a new client ID for the client, and click the Save button. The new client will have the same EIN and name as the original client. Creating new clients is necessary so that the federal at-risk and passive calculations for the original consolidated and member clients are not changed when the group members are changed.
  2. Add Idaho to the parent, eliminations client, and applicable subsidiary clients. Complete all data entry for these member clients. Each member's state return should be complete and correct before proceeding to the next step.

    Notes

    • Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. The same apportionment method should be used by the parent client and applicable subsidiary clients. Apportionment data entry is accessed through View > Apportionment.
    • Including an eliminations client as part of a consolidated group is optional. Idaho apportionment eliminating entries must be entered in the member returns. If preparing a multi-state return with eliminating entries for apportionment, Idaho eliminating entries must also be entered in the apportionment grid in the eliminating client.
  3. Create a new consolidated client using the Consolidated entity type in File > Client Properties.
  4. Select the appropriate members to be included in the Idaho combined group. Choose File > Client Properties and click the Advanced Properties button. In the Group tab, remove or add subsidiary clients as necessary. If applicable, remove the current eliminations client that was used by the federal client and then add the eliminations client created in step 2. Click OK to close the Advanced Properties dialog. Click OK again to close the New Client or Client Properties dialog.
  5. Add Idaho to the new consolidated client.

    Note: When adding Idaho to a consolidated federal client, the state automatically defaults to being a combined return.

    If the state is added as a C Corporation to a federal consolidated group, the consolidated functionality does not take place. The amounts from each member are not combined and the combined return worksheets are not available.

  6. Review all Idaho combined client input screens and complete any necessary remaining data entry. For each category not marked in the File > Client Properties > Advanced Properties > Options dialog, enter the necessary data in the applicable input screens.

    Note: If a category is not marked, enter the data on the applicable input screens in the combined client. For a list of categories and related input screens, see Categories and related Idaho input screens.

    Any changes made to the File > Client Properties > Advanced Properties > Options dialog affect both the federal and state return.

  7. Click the Combined folder in the Idaho folders block. Complete the necessary information in Screen IDAffil.
  8. To make manual adjustments in other areas of the return, click the Group View button or press F7 in the input screen field you want to adjust, and then enter the adjustment amount in the Group View dialog.
  9. To change amounts entered in the Idaho parent, eliminations, or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake when you entered the apportionment of the first subsidiary, close the consolidated client and reopen the first subsidiary. Choose View > Apportionment for that client and correct the data. Close the subsidiary client and reopen the consolidated client. The correct amount is now a part of the consolidated group return.
  10. Print and review the Idaho combined tax return.

Example of when an Idaho group is different from a federal consolidated group and the federal group contains members with at-risk or passive activities.

Share This