New (tax) year, new help!

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 is beginning capital allocated to the partners?

Answer

Beginning capital is allocated, or not allocated, based on whether the client was proforma'd, converted, or new.

• Proforma'd clients - No action is necessary. UltraTax CS automatically proformas the total ending capital for all partners from the prior year to the Capital account - beginning of year field in Screen M1M2. In addition, UltraTax CS proformas the partners' specific amounts for the Ptr Alloc button.
• Converted clients - The UltraTax CS Data Conversion Service converts only the total beginning capital for all partners and enters the amount in the Capital account - beginning of year field in Screen M1M2. Click the Ptr Alloc button, and allocate this amount by absolute dollar to the partners.
• New clients - UltraTax CS does not automatically allocate beginning capital. Enter the total beginning capital for all partners in the Capital account - beginning of year field in Screen M1M2. Click the Ptr Alloc button, and allocate this amount by absolute dollar to the partners.

Related topic: Allocating partnership items to partners FAQs (1065)

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