2018 UltraTax CS
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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
How are amounts allocated to the partners?
Answer
UltraTax CS automatically allocates most amounts for federal partner forms, schedules, and worksheets using the profit sharing percentages. UltraTax CS automatically allocates most amounts for state partner forms, schedules, and worksheets as follows.
- For state amounts that do not have a direct correlation to a federal amount, UltraTax CS allocates the state amount using the profit sharing percentages.
- For state amounts that have a direct correlation to a federal amount, UltraTax CS allocates amounts to partners based on the selection of the Default state partner special allocations to the corresponding federal special allocation field in Screen CltOptns.
- If the Default state partner special allocations to the corresponding federal special allocation field is not marked then UltraTax CS allocates most amounts using the profit sharing percentages.
- If the Default state partner special allocations to the corresponding federal special allocation field is marked then UltraTax CS uses the correlating federal allocation to allocate the state amount. In the state input screens the Ptr Alloc button will automatically display in red, indicating the amount is being allocated other than by the profit sharing percentages.
Notes
- To mark the Default state partner special allocations to the corresponding federal special allocation field one time for all new clients, mark the Default state partner allocations to federal allocated amounts (Screen CltOptns) field in the Return Presentation tab in the New Client Options dialog. To open this dialog, choose Setup > 1065 Partnership, and click the New Client Options button.
- For information on how to print a report detailing the state allocations that are defaulting to a federal amount and what allocation it defaults to, see Printing partner information reports for an open client's return.
Use the Ptr Alloc buttons in the 1065 input screens to allocate an amount to the partners using a method other than the default method being used.
Notes
- You can click the applicable Ptr Alloc button for an item to view the amounts UltraTax CS automatically allocated to the partners.
- To enter the profit sharing percentages, choose View > Partner Information, and click the Allocations button
- See What items are automatically allocated using the loss sharing percentages (FAQ) for the list of federal items that default to the loss sharing percentages for Schedule K-1 and other partner forms and worksheets.
- If there is a change of ownership during the tax year, UltraTax CS defaults to using the calculated prorated sharing percentages. To calculate the partners' distributive share amounts based on the sharing percentage for each ownership period, annualize the partnership's share of current year income, deductions, credits, and other items in View > Interim Closing Annualization.
Related topic: Allocating partnership items to partners FAQs (1065)
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