Distributing amounts to partners using the interim closing of books method

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Use this procedure to determine the partners' distributive share amounts using the interim closing of books method (interim closing annualization).

  1. Choose View > Partner Information.
  2. Click the Changes of Ownership button (or press CTRL+W).
  3. Click the Add Date Add Date button button (or press CTRL+A), enter the date the ownership changed, and click OK. (The date you enter must fall within the client's tax year.) UltraTax CS automatically adds a column for the date you entered and shows the percentage or unit from the previous column for each partner.
  4. In the date column you just added, update the percentage or unit for partners whose ownership has changed.
  5. Enter additional ownership changes, up to one change for each day of the client's tax year, as needed. If you enter additional ownership changes, UltraTax CS automatically updates the percentages or units in each date column according to the percentages or units in the previous date column.
  6. Click Done to exit Partner Data Entry and to return to the current input screen or form.
  7. Choose View > Interim Closing Annualization.
  8. In the Interim Closing Annualization window, enter the amount allocated to each period of ownership for each item to be distributed for all fields on all federal, state, and city tabs.

Notes

  • Once information is entered for any item in the Annualization spreadsheet, UltraTax CS distributes all partners' distributive shares using the interim closing of partnership books method. If there is no entry for an item in the Annualization spreadsheet, UltraTax CS will default the entire amount to the last period of ownership.
  • If an amount is specially allocated to the partners using the Special Allocation of dialog, UltraTax CS does not use this method to calculate the partners' distributive share amount for that item only.
  • To delete all entries in the Interim Closing Annualization window and use the proration method, choose Edit > Delete All Data.
  • See the Can you provide an example of how an amount is distributed to a partner when I use the proration method versus the interim closing of books method FAQ for more information about how UltraTax CS calculates the partners' distributive share amounts.
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