Asset depreciation issues for 1065 state returns

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.

If you enter asset information for a 1065 state or city return in the asset module, note that some 1065 state and city returns have depreciation issues. Click a state or city to view the depreciation issues.

Data calculation and transfer

After the application calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the CA column of the asset module to Form 3885P (Form 3885L for limited liability companies). The application then transfers the appropriate depreciation and amortization amounts to the various state forms, such as Form 565 (Form 568 for limited liability companies), California Schedule F, California Farm Rental Income and Expenses Worksheet, and California Form 8825 (including the California Rent and Royalty Schedule).

State adjustments and tax preference items transfer directly to the Depreciation adjustment on property placed in service after 1986 and Adjusted gain or loss fields in Screen CASepK.

State corporate ACE adjustments transfer directly to the AMT Depreciation: Total Depreciation, ACE Depreciation: Post 1997 property, 1990-1997 property, 1987-1989 property, 1981-1986 property, Sec 168(f) (1)-(4) property, Other property, and Basis adjustment on disposition fields in Screen CAMisc.

Current-year asset disposition information transfers directly to Schedule D-1, California Form 4684 and California Form 8824. The application uses the state cost and the depreciation allowed to calculate the California sales and casualty and theft dispositions.

Asset basis transfers

Basis and accumulated depreciation amounts from the Book column transfer as a default (or the CA column if no book information is entered) to Schedule L.

Data calculation and transfer

After the application calculates depreciation and amortization, depreciation and amortization amounts for assets entered in the DC column of the asset module transfer to various state forms, such as District of Columbia Form 4562, Schedule F, the Farm Rental Income and Expenses Worksheet, and the Rent and Royalty Schedule.

Current-year asset disposition information transfers directly to Screen DCDepr. The application then transfers the appropriate sales information to the various state forms, such as the District of Columbia Adjustment for Disposition of Assets Worksheet.

Data calculation and transfer

After the application calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the HI column of the asset module to Hawaii Form 4562. The application then transfers the appropriate depreciation and amortization amounts to the various state forms, such as Form N-20, Hawaii Schedule F, Hawaii Farm Rental Income and Expenses Worksheet, and Hawaii Form 8825 (including the HI Rent and Royalty Schedule).

Current-year asset disposition information transfers directly to Screen HISale. The application  then transfers the appropriate sales information to the various state forms, such as Schedule D-1 and Hawaii Form 6252.

Asset basis transfers

The application transfers the description, basis, date placed in service, and date property ceased to qualify for assets that qualify for the Idaho investment tax credit from information entered in the ID column of the asset module to Screen IDCredit. The application uses this information to complete Form 49, Idaho Investment Tax Credit and Form 49R, Recapture of Idaho Investment Tax Credit.

To indicate an asset qualifies for the investment tax credit in the Asset Detail dialog, click the Other tab, and click the Credit Information button. Next, click the ID Investment Credit tab, and mark the Qualified for investment tax credit checkbox.

Data calculation and transfer

After UltraTax CS calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the NH column of the asset module to Screen NHDepr. UltraTax CS then transfers the appropriate depreciation and amortization amounts to the Depreciation and Section 179 Adjustment Worksheet, and then to Form NH-1065.

Current-year asset disposition information transfers directly to Screen NHSale. UltraTax CS then transfers the appropriate sales information to the various state forms, such as New Hampshire Form 4797, New Hampshire Form 6252, and New Hampshire Disposition Worksheet.

Data calculation and transfer

After the application calculates depreciation, the application transfers depreciation amounts from the asset module or Fixed Assets CS to UltraTax/1065-NY. UltraTax/1065-NY then transfers the amounts to Form IT-399, Form IT-398, Form NYC-399, and Form NYC-399Z. If depreciation amounts are not entered in the asset module or in Fixed Assets CS, you must enter information in the statement dialogs in Screens NYDepr and NYCDepr for both New York State and New York City.

For assets entered with an ACRS / MACRS code in the Tax column but not in the NY column, UltraTax/1065-NY prints the depreciation adjustment information on Form IT-399 and Form NYC-399 or in statements attached to the return.

To specially allocate New York State and/or New York City and federal ACRS depreciation amounts, click the Ptr Alloc button next to the Depreciation field in Screen NYDepr for New York State and in Screen NYCDepr for New York City.

The state does not accept "various" for the date acquired; therefore, do not enter 999999 in the Date Acquired field.

Current-year asset disposition information transfers to the statement dialogs for the Disposition adjustments fields in Screens NYDepr and NYCDepr. UltraTax CS then transfers the disposition-related depreciation adjustments to the various state and city forms.

Data calculation and transfer

After UltraTax CS calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the PA and PA S/L columns of the asset module to Screen PADepr. UltraTax CS then transfers the appropriate depreciation and amortization amounts to the various state forms such, as Pennsylvania Schedule M Reconciliation, Pennsylvania Schedule E, the Farm Rental and Expenses Worksheet, the Pennsylvania Rent and Royalty Schedule, and Pennsylvania Schedules RK-1 and NRK-1.

Current-year asset disposition information transfers directly to Screens PASale and PASalePT. UltraTax CS then transfers the appropriate sales information to the various state forms such, as Pennsylvania Schedule M Reconciliation, Pennsylvania Schedule D, and Pennsylvania Schedule D-1. UltraTax CS uses the state cost and depreciation allowed to calculate the Pennsylvania sales.

Data calculation and transfer

After UltraTax CS calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the TX column of the cost of goods sold asset module to Screen TXAdj or TXAdja. UltraTax CS uses this information to complete Form 05-158 and/or the Texas Combined Worksheet, if applicable.

Data calculation and transfer

After UltraTax CS calculates depreciation and amortization, the application transfers depreciation and amortization amounts for assets entered in the WI column of the asset module to the various state forms, such as Form 3, Wisconsin Schedule F, Wisconsin Farm Rental Income and Expenses Worksheet, and Wisconsin Form 8825 (including the Wisconsin Rent and Royalty Schedule).

State adjustments and tax preference items transfer directly to the Depreciation adjustment on property placed in service after 1986 and Adjusted gain or loss fields in Screen WIK-4.

Current-year asset disposition information transfers directly to Wisconsin Form 4797, Wisconsin Form 4684, and Wisconsin Form 8824. UltraTax CS uses the state cost and depreciation allowed to calculate the Wisconsin sales and casualty and theft dispositions.

Related topic: Overview of the UltraTax CS asset module

Share This