1120-US: Determining patronage and nonpatronage business activity on Form 1120-C (FAQ)

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Question

How does UltraTax/1120 determine if the business activity is patronage or nonpatronage?

Answer

Business activity from all sources (both patronage and nonpatronage) should be entered in Screen Inc in the appropriate fields. Business activity from patronage sources should be entered in the Allocation of Patronage Income and Deductions section of Screen 1120C. UltraTax/1120 assumes all business activity is from nonpatronage sources unless specified otherwise in Screen 1120C.

Related topic: 1120-US: Form 1120-C - Cooperative associations FAQs

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