2018 UltraTax CS
IRS Regulations section 1.706-4(a)(1) defines the two methods to determine a partner's distributive share amount: interim closing of the partnership books and proration.
Use the Interim Closing Annualization window to determine the partners' distributive shares using the interim closing of the partnership books method. UltraTax CS uses the information you enter in this window and the percentages entered in the Changes of Ownership window in Partner Data Entry to calculate the distributive amounts.
To open the Interim Closing Annualization window, choose View > Interim Closing Annualization with a 1065 client open.
Notes
- See Distributing amounts to partners using the proration method for more information about using the proration method.
- You must enter the different periods of ownership in the Changes of Ownership window in Partner Data Entry before you can enter annualization information. UltraTax CS uses these ownership periods to determine which columns appear in the Annualization spreadsheet.
- UltraTax CS uses data entry from the federal and state input screens to determine the rows that appear in the Annualization spreadsheet. If there are no items to be annualized, UltraTax CS displays "There are no items to annualize at this time."
- 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.
Components of this window
Interim Closing Annualization menu