1065-US: Entering reductions to a partnership's effectively connected taxable income under Regulations section 1.1446-6 (FAQ)

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Question

Where do I enter reductions to the partnership's effectively connected taxable income under Regulations section 1.1446-6?

Answer

Use the statement dialogs for the Reductions to effectively connected taxable income: State and local taxes / Partner-level items on Form 8804-C fields in Screen 8804.

Notes
  • To enter reductions for all types of income allocable to corporate foreign partners, choose code 1, Net ordinary income, in the statement dialogs for the Reductions to effectively connected taxable income: State and local taxes / Partner-level items on Form 8804-C fields. Use the Ptr Alloc button to allocate these amounts to the appropriate partners.
  • Reductions entered in Screen 8804 will be disregarded for those partners with the De minimis partner certificate on file checkbox marked in the Federal tab in the Partner Information window in Partner Data Entry.

Related topic: Forms 8804 and 8805 FAQs (1065)