1065-US: Calculating beginning-of-year and end-of-year percentages on Schedule K-1, item J (FAQ)

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Question

How are the beginning-of-year and end-of-year percentages on Schedule K-1, item J calculated?

Answer

UltraTax CS defaults the beginning-of-year and end-of-year profit, loss, and capital percentages for Schedule K-1, item J to the first and last day a partner owns an interest in the partnership using information entered in the Changes of Ownership window in Partner Data Entry. For example, if a partner joins the partnership after the beginning of the partnership's tax year, the beginning-of-year percentages displayed on Schedule K-1 will be the partner's percentages as of the day the partner joins the partnership, not 0 percent. Mark the Display Schedule K-1 partner percentages using the partnership’s tax year field in Screen K1Misc in the Partner Info, Basis folder to display the partners' percentages as of the beginning and end of the partnership's tax year. In the previous example, the beginning-of-year percentages displayed on Schedule K-1 will be 0 percent.

In addition, the end-of-year capital percentages can be calculated based on the partners' share of ending capital. Mark the Compute partner end-of-year ownership percentage based on ending capital field in Screen K1Misc in the Partner Info, Basis folder to use this method.

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