Entering business activities

Alerts and notices

Use this procedure to enter information for business activities.

  1. Click the Activities button in the main data-entry window. The Business Activities dialog opens.
  2. In the Activities list, highlight an existing activity for which you want to enter data, or add a new activity.

    Adding a new business activity

    1. Click the New button in the Business Activities dialog.
    2. Enter the name of the activity in the Current activity field.
    3. Select a passive or material participation category from the Type of activity field.
    4. Select Taxpayer or Spouse from the Taxpayer/Spouse field to specify the individual associated with the new activity.
    5. Select No, Yes, or Yes - investment income from the Recharacterization of passive income? field.
      • Select Yes for a passive activity that is subject to the net income recharacterization rules, such as a self-rental activity.
      • Select Yes - investment income to treat income and loss amounts from the activity as investment income for purposes of the itemized investment interest deduction and the net investment income tax.
    6. Select Program default or Subject to NIIT from the Force NIIT treatment field.
      • Select Subject to NIIT for a material participation activity if net income or loss from the activity is subject to net investment income tax.
    7. Mark the checkbox for each form required for this activity in the Form(s) activity is associated with group box.
  3. Click the Data Entry button. Planner CS enables the data-entry tabs for the forms associated with the activity and opens the first tab in the main data-entry window.
  4. Enter data in the appropriate tabs and fields. Or, double-click a data-entry field to open a window in which you can enter detailed information or multiple items for that field.
  5. If necessary, repeat the steps in this procedure to enter data for additional business activities.

Entering material participation activities

Enter net self-employment earnings on the Sch K-1 Operating tab. These amounts will transfer to the SE income from K1s fields on the Income > Rental/K-1s tab. The net total of Schedule E partnership income that you designate as Material Participation transfers to the Partnership field in the Income > Rental/K-1s tab.

Entering nonresident state source amounts

To enter nonresident state source amounts for passive or material participation activities, use the following information instead of the above procedure. 

  • For passive activities, click the state module button on the Planner CS toolbar, click the Nonresident button, and enter passive activity data in the state's nonresident income tab.
  • For material participation activities, double-click a field in an applicable tab under the Income button and enter state-specific material participation activities in the Allocation window.


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