Entering special allocations (1065)

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UltraTax CS automatically assigns the profit-sharing percentage allocation to most amounts of a partnership. The loss sharing percentage allocation is used for qualified non-recourse liabilities and recourse liabilities. Use these procedures to specially allocate partnership amounts to the partners in a manner that differs from the default allocation method. When you specially allocate an amount, UltraTax CS allocates the amount to the partners according to the allocation scheme you define for that amount. The resulting allocated amounts transfer to the partners' Schedules K-1.

Note: You can specially allocate depreciation for assets just like other amounts; however, you enter special allocations for assets in the asset module (click the Asset tab in the Income & Deductions, Farm, Farm Rental, Schedule K, or Rent & Royalty folders) and not according to the following procedures. See Entering depreciation special allocations (1065) for details about entering special allocations for depreciation data.

You can enter special allocations on a field-by-field basis using the Special Allocation of dialog accessible from the input screens, or you can enter all special allocations in the Allocations window in Partner Data Entry.

Entering special allocations for a field in the Special Allocation of dialog

  1. Enter the total amount to be allocated in the amount field of the partnership amount you want to allocate.
  2. Click the Ptr Alloc Partner Allocation button button to open the Special Allocation of dialog.
  3. In the Allocation scheme group box, mark the Specially allocate checkbox.
  4. Select the appropriate option.
    • Click the US: <allocation name> option to default a state allocation to a federal allocated amount.
    • Click the Percentage option to use a single percentage column.
    • Click the Units option to use a single unit column.
    • Click the Absolute dollar option to use a single absolute dollar column.
    • Click the Loss option to use the Loss column in Partner Data Entry.
    • Click the Advanced option to use multiple allocation scheme methods (for example, to use both an absolute dollar column and a percentage column). Then, proceed to define the advanced allocation scheme.

      Note: The US: <allocation name> option is only available on a state allocation that has the ability to default to a federal allocated amount.

  5. Enter each partner's allocated percentage, amount, or unit in the allocation grid.

    Note: You can enter a partial percentage or amount of the allocation and then click the Distribute Distribute button button to distribute the remaining percentage or amount equally or pro rata to selected partners. The Distribute button is available only if there is a percentage or amount that still needs to be distributed.

  6. Click OK to save the allocation information and to close the Special Allocation of dialog.
  7. Repeat steps 1 through 6 for each partnership amount you want to specially allocate to the partners.

Notes

  • To remove the special allocation for an amount, clear the Specially allocate checkbox.
  • To add a custom percentage or unit allocation, click the Percentage option or the Units option to select the allocation method, and enter the partner's allocation. Then, click the Custom checkbox, and enter the unique title.
  • To re-use a previously-defined percentage or unit custom allocation, click the Percentage option or the Units option to select the allocation method. Then, click the Custom checkbox, and select the previously-defined custom allocation.

Entering special allocations in the Allocations window

  1. Enter amounts needed to complete the partnership return in the appropriate input screens.
  2. Choose View > Partner Information, and click the Allocations button to open the Allocations window in Partner Data Entry.
  3. In the Allocation list, focus to the amount you want to specially allocate by selecting the application > folder > screen > field of the partnership amount.

    Note: You must select All Allocations with Amounts from the drop-down list in the Allocation list to add special allocations in the Allocations window.

  4. In the Allocation scheme group box, mark the Specially allocate checkbox.
  5. Select the appropriate option.
    • Click the US: <allocation name> option to default a state allocation to a federal allocated amount.
    • Click the Percentage option to use a single percentage column.
    • Click the Units option to use a single unit column.
    • Click the Absolute dollar option to use a single absolute dollar column.
    • Click the Loss option to use the loss column in Partner Data Entry.
    • Click the Custom option to use a previously-defined custom allocation for the special allocation. Use the drop-down list to select the desired custom allocation. Choose Edit > Create Custom to create a custom allocation.
    • Click the Advanced option to use multiple allocation scheme methods (for example, to use both an absolute dollar column and a percentage column). Then, proceed to define the advanced allocation scheme.

      Note: The US: <allocation name> option is only available on a state allocation that has the ability to default to a federal allocated amount.

  6. Enter each partner's allocated percentage, amount, or unit in the allocation grid.

    Note: You can enter a partial percentage or amount of the allocation and then click the Distribute Distribute button button to distribute the remaining percentage or amount equally or pro rata to specific partners. The Distribute button is available only if there is a percentage or amount that still needs to be distributed.

  7. Repeat steps 3 through 6 for each partnership amount you want to specially allocate to the partners.

    Note: To remove the special allocation for an amount, clear the Specially allocate checkbox.

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