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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Does UltraTax CS automatically reduce tax attributes?

Answer

UltraTax CS displays the tax attributes, calculated as of the last printing or previewing of the return, available for reduction if you enter X in the Display available credits and carryovers field in Screen 982 or 982S (as applicable). While all available attributes are displayed, only some are automatically reduced when a corresponding amount is entered in the Excluded Gross Income column.

The following tax attributes are automatically reduced.

• Net operating loss attributes - Any reductions are reported on the Adjusted Net Operating Loss Carryover Worksheet or the Adjusted Patronage Net Operating Loss Carryover Worksheet, as applicable. These worksheets are located in the 982 CO folder.
• General business credit attributes - The general business credit attributes are reduced on the Adjusted General Business Credit Carryover Worksheet, which is located in the 982 CO folder.
• Minimum tax credit attributes - The minimum tax credit attributes are reduced on Form 8827, line 9. A worksheet is provided on the bottom of the form to show how the carryover was reduced.
• Capital loss attributes - The capital loss attribute is reduced on the Adjusted Capital Loss Carryover Worksheet, which is located in the 982 CO folder.
• Foreign tax credit attributes - The foreign tax credit attributes are reduced on the Adjusted Foreign Tax Credit Carryover Worksheet, which is located in the 982 CO folder.

The following tax attributes need to be manually reduced.

• Passive activity loss attributes - To reduce the passive activities, override the reduced amount for the applicable activity in the Suspended Losses to Next Year column in the Passive Activity Deduction Worksheet, which is located in the 8810 folder. The amounts entered directly on this form will proforma to the following year.
• Passive activity credit carryovers - To reduce the passive activity credit carryovers by the amount excluded from income, override the Suspended Credits to Next Year column in the applicable Passive Activity Credit Worksheet, which is located in the 8810 folder. The amounts entered directly on this form will proforma to the following year.

Related topic: 1120-US: Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness FAQs

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