1065-US: Interim closing annualization (FAQ)

Alerts and notices
Leave feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Question

What is interim closing annualization?

Answer

Per Regulations section 1.706-4(a)(1), a partnership can use one of two methods to determine a partner's distributive share for Schedule K-1 and other partner forms: proration and interim closing of books. Use interim closing annualization to calculate the partners' distributive shares for Schedule K-1 and other partner forms using the interim closing of books method. UltraTax CS will use the amounts entered in the Interim Closing Annualization window with the profit or loss percentages for each ownership period entered in the Changes of Ownership window in Partner Data Entry to calculate the partners' distributive amounts.

Note: See the Allocating partnership items to partners FAQs for more information about how UltraTax CS allocates amounts to the partners.

Related topic: Interim closing annualization FAQs (1065)

Share This