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Question

How is partner basis information shared from 1065 clients to 1120 clients?

Answer

The data sharing feature enables you to share partner basis information from 1065 clients to 1120 clients. In addition to basis items that are automatically shared, you may choose to share beginning-of-year basis balances and prior-year suspended basis losses to 1120.

The following information identifies basis items that are automatically shared, how to share beginning-of-year basis and prior-year suspended basis losses, and how to prevent basis information from being shared.

Items that are automatically shared

The following basis items are automatically shared.

• Any item reported on Schedule K-1 that is normally shared, such as property distributions. For information on which Schedule K-1 data is not shared, see Federal Financial Data Not Shared.
• From UltraTax CS/1065 Basis Worksheet:

  Form/Worksheet	Item
  Partner's Basis Worksheet, Page 1	Capital contribution: Cash
  Partner's Basis Worksheet, Page 1	Capital contribution: Property (adjusted basis)
  Partner's Basis Worksheet, Page 1	Increase in share of partnership liabilities
  Partner's Basis Worksheet, Page 1	Decrease in share of partnership liabilities
  Partner's Basis Worksheet, Page 1	Excess depletion
  Partner's Basis Worksheet, Page 1	Other basis increases
  Partner's Basis Worksheet, Page 1	Other basis decreases
  Partner's Schedule K-1	Nonrecourse liability
  Partner's Schedule K-1	Qualified nonrecourse liability
  Partner's Schedule K-1	Recourse liability

Beginning-of-year basis balances and prior-year suspended basis losses

Beginning-of-year basis balances and prior-year suspended basis losses are not automatically shared from 1065 clients to 1120 clients. If this is the first year you are preparing the Partner’s Basis worksheet in 1120 and you would like to share this information, enter X in the Data share beginning of year basis and prior year suspended losses field in Screen Basis in the Partner Info, Basis folder in the 1065 client.

Data sharing beginning-of-year basis balances and prior-year suspended basis losses will overwrite any data proforma'd in UltraTax CS/1120 for these items.

Preventing basis information from being shared

To prevent basis information from being shared when the partner basis worksheets are calculated in UltraTax CS/1065, enter X in the Suppress data share of partner basis information field in Screen Basis in the Partner Info, Basis folder in the 1065 client. This option will be applied to all partners in the partnership.

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