Passive activities overview (1120)

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UltraTax/1120 automatically combines information you enter throughout the return and determines the allowed losses for an activity. UltraTax CS reports the allowed passive activity amounts on Form 4835, Schedule F, Page 1, and the Rent and Royalty Worksheet. In addition, adjustment amounts are calculated that transfer to Schedule D and Form 4797.

UltraTax/1120 produces non-submittable worksheets to support passive activities. If the losses or credits from the activity are limited by passive activity limitation rules, UltraTax CS provides a detailed audit trail showing the prior-year suspended amount, the current-year generated amount, the current-year utilized amount, and the amount suspended to next year. The worksheets that provide this detail are the Passive Activity Deduction Worksheet, Passive Activity Credit Worksheet, PTP - Passive Activity Deduction Worksheet, PTP - Passive Activity Credit Worksheet, Schedule F Passive Activity Deduction Worksheet (Regular Tax and AMT), Farm Rental Passive Activity Deduction Worksheet (Regular Tax and AMT), and Rent and Royalty Passive Activity Deduction Worksheet. For more information on passive activities, click the following links.

Supported forms and schedules

Other forms and schedules

Passive activity codes

Passive activity carryovers

Disposition of passive activities

Former passive activities

Publicly Traded Partnerships

Passive credits

Other issues

Passive worksheets

Related topic: Passive loss information FAQs

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