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1065
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This topic provides general information about the 1065 federal application and processing guidelines.
Multiple-unit input screens available
UltraTax CS allows you to create multiple copies of the same input screen. When more than one input screen is used, each copy is referred to as a "unit." Screen K1, for example, is a multiple-unit input screen that enables you to use a separate input screen for reporting each passthrough Schedule K-1 activity. The table below lists the UltraTax/1065 multiple-unit input screens and the maximum number of units available for each screen. These maximums are the number of units possible up to the per-return limit.
| Multiple-unit input screens | Number of units possible |
|---|---|
| Screen 1098C, Contributions of Motor Vehicles, Boats, and Airplanes | No practical limit |
| Screen 3115, Change in Accounting Method | No practical limit |
| Screen 3115-2, Automatic Change and Section 481(a) | No practical limit |
| Screen 3115-3, Change in Overall Method & Defer Method for Advance Payment | No practical limit |
| Screen 3115-4, Changes Within LIFO Inventory Method | No practical limit |
| Screen 3115-5, Change in Treatment of Long-Term Contracts | No practical limit |
| Screen 3115-6, Method of Cost Allocation | No practical limit |
| Screen 3115-7, Other Costs Not Allocated | No practical limit |
| Screen 3115-8, Change in Depreciation and Amortization | No practical limit |
| Screen 3468, Investment Credit | No practical limit |
| Screen 4562, Depreciation and Amortization | No practical limit |
| Screen 4684, Casualty and Theft Loss | No practical limit |
| Screen 4684Elec, Federally Declared Disaster Loss | No practical limit |
| Screen 4684PY, Prior Year Casualty and Theft Loss | No practical limit |
| Screen 4835, Farm Rental - Income | 999** |
| Screen 4835-2, Farm Rental - Expenses | 999** |
| Screen 5471, Foreign Corporation | No practical limit |
| Screen 5471-2, Other Information and Foreign Corporation Stock | No practical limit |
| Screen 5471-3, US Shareholders and Income Statement | No practical limit |
| Screen 5471-4, Taxes Paid and Balance Sheet | No practical limit |
| Screen 5471-5, Other Information, Current Earnings, and Shareholder Income | No practical limit |
| Screen 5471-6, Accumulated Earnings and Related Party | No practical limit |
| Screen 5471-7, Foreign Corporation Organization or Reorganization | No practical limit |
| Screen 8283 Noncash Contributions Less Than $5,000 | No practical limit |
| Screen 8283-2, Noncash Contributions Greater Than $5,000 | No practical limit |
| Screen 8594, Asset Acquisition Statement | No practical limit |
| Screen 8609, Annual Statement for Low-Income Housing Credit | No practical limit |
| Screen 8824, Like-Kind Exchanges | No practical limit |
| Screen 8824PT, Like-Kind Exchange of Section 179 Assets | No practical limit |
| Screen 8886, Reportable Transaction Disclosure Statement | No practical limit |
| Screen 8886-2, Reportable Transaction - Entities Involved in Transaction | No practical limit |
| Screen 8938-2, Statement of Specified Foreign Financial Assets, Page 2 | No practical limit |
| Screen A, Cost of Goods Sold | 999*** |
| Screen Cr, Credits - Forms 5884, 5884-A, and 6478 | No practical limit |
| Screen Cr-2, Credits - Forms 6765, 8820, and 8826 | No practical limit |
| Screen Cr-3, Credits - Forms 8835 and 8844 | No practical limit |
| Screen Cr-4, Credits - Forms 8845, 8846, 8864, and 8874 | No practical limit |
| Screen Cr-5, Credits - Forms 8881, 8882, 8932, 8941, and 8994 | No practical limit |
| Screen CODI, Deferral of Cancellation of Debt Income Election | No practical limit |
| Screen F, Farm - Income | 999** |
| Screen F-2, Farm - Expenses | 999** |
| Screen FrgnAcct – Foreign Financial Accounts – Form 8938 and Form 114 (FBAR) | No practical limit |
| Screen Inc, Income and Deductions | 999*** |
| Screen InstPY, Prior Year Installment Sale | 1,000* |
| Screen K1, Form 1065 / 1041 Schedule K-1 - Income | No practical limit |
| Screen K1-2, Form 1065 / 1041 Schedule K-1 - Income and Deductions | No practical limit |
| Screen K1-3, Form 1065 / 1041 Schedule K-1 - DPAD and Self-Employment | No practical limit |
| Screen K1-4, Form 1065 / 1041 Schedule K-1 - Credits and Foreign | No practical limit |
| Screen K1-5, Form 1065 / 1041 Schedule K-1 - AMT and Other | No practical limit |
| Screen K1-6, Form 1065 / 1041 Schedule K-1 – Sch M-3 Info and Sec 179 CO | No practical limit |
| Screen K13468, Form 1065 / 1041 Schedule K-1 - Investment Credit | No practical limit |
| Screen K1CODI, Form 1065 / 1041 Schedule K-1 - COD Income | No practical limit |
| Screen K1Frgn, Form 1065 / 1041 Schedule K-1 - Foreign Transactions | No practical limit |
| Screen K1Sale, Form 1065 / 1041 Schedule K-1 - Sale of 179 Asset | No practical limit |
| Screen KFrgn, Schedule K - Foreign Transactions | No practical limit |
| Screen KSup, Schedules K and K-1 - Supplemental Items | 2 |
| Screen OGCost, Oil and Gas Cost Center Information | No practical limit |
| Screen OGWell, Oil and Gas Well Information | No practical limit |
| Screen OrgNotes, Web Organizer Notes to Preparer | No practical limit |
| Screen OrgQues, Web Organizer Questionnaire | No practical limit |
| Screen Ponzi, Revenue Procedure 2009-20 (Ponzi) | No practical limit |
| Screen Rent, Rent and Royalty Properties | 999** |
| Screen Sale, Sales | 1,000* |
| Screen SalePT, Sale of Section 179 Assets | No practical limit |
| Screen SepK, Separately Stated Income and Expenses | No practical limit |
* The combination of Screen Sale and Screen InstPY can total no more than 1,000 per client.
** If using Fixed Assets CS, the maximum number of units permitted per activity is 250 per client. The combination of Screen Inc, Screen A, Screen F, Screen 4835, and Screen Rent can total no more than 999 per client.
For information about accessing multiple-unit input screens, refer to Multiple-unit input screens.
States and municipalities available
The following states and municipalities are available for UltraTax/1065.
| Alabama | Alaska | Arizona |
| Arkansas | California | California PPT |
| Colorado | Connecticut | Delaware |
| District of Columbia | District of Columbia PPT | Florida |
| Florida PPT | Georgia | Georgia PPT |
| Hawaii | Idaho | Illinois |
| Indiana | Indiana PPT | Iowa |
| Kansas | Kentucky | Kentucky Cities |
| Kentucky PPT | Louisiana | Maine |
| Maryland | Maryland PPT | Massachusetts |
| Michigan MBT | Michigan Composite | Michigan Cities |
| Michigan PPT | Minnesota | Mississippi |
| Missouri | Missouri Cities | Montana |
| Nebraska | Nebraska PPT | Nevada |
| New Hampshire | New Jersey | New Mexico |
| New York | New York City | North Carolina |
| North Carolina PPT | North Dakota | Ohio |
| Ohio Cities | Oklahoma | Oregon |
| Oregon Counties | Oregon Cities | Pennsylvania |
| Pennsylvania Cities | Puerto Rico | Puerto Rico Municipalities |
| Puerto Rico PPT | Rhode Island | South Carolina |
| South Carolina PPT | Tennessee | Texas |
| Texas PPT | Utah | Vermont |
| Virginia | Virginia PPT | West Virginia |
| Wisconsin | Wisconsin PPT |
The following tax assumptions are built into UltraTax/1065.
No amortization is included with the depreciation amount on Page 1 of the return. Amortization is included with Page 1, Other deductions. Amortization entered in a business activity other than on Page 1 is not included with amortization in Screen Inc.
UltraTax CS assumes that you can have both deductible and nondeductible guaranteed payments. Enter deductible guaranteed payments related to health insurance, pensions and IRAS, and other in Screens Inc, 4835-2, F-2, OGWell, Rent, and SepK. Enter nondeductible guaranteed payments in Screen SepK.
- The tentative percentage depletion calculated is limited to 100 percent of well net income before depletion and passed through to the appropriate partners. There is no further limitation to 65 percent of taxable income, because the partner's taxable income cannot be readily determined at the partnership level.
- UltraTax CS assumes that all producers are small producers. Therefore, no disallowance of percentage depletion occurs with larger productions.
Sales or other dispositions with section 179 expense deduction
The instructions for Form 4797 state, "Partnerships and S corporations do not report these transactions [dispositions by a partnership of section 179 property] on Forms 4797, 4684, 6252, or 8824. Instead, they provide their partners and shareholders the information they need to report the transactions. See the instructions for Form 1065 or Form 1120S for details on the information that must be reported on Schedule K-1."
The instructions for Form 1065, Page 1, line 6 state, "Partnerships should not use Form 4797 to report the sale or other disposition of property if a section 179 expense deduction was previously passed through to any of its partners for that property. Instead, report it in box 20 of Schedule K-1 using code L. See the instructions for Dispositions of property with section 179 deductions (code L), later, for details."
The Form 1065 instructions for the Worksheet for Figuring Net Earnings (Loss) from Self-Employment, line 4a state, "Also include other ordinary business income and expense items (other than expense items subject to separate limitations at the partner level, such as the section 179 expense deduction)... ." Therefore, ordinary expense items such as oil and gas depletion and section 179 expense that are subject to separate limitations are not subtracted from self-employment income on Schedule K or K-1.
The following list outlines the capacities of UltraTax/1065.
- Handles dollar amounts up to $999,999,999,999
- Handles up to 9,999 partners when using UltraTax CS on a 64-bit operating system
- Allows up to 364 changes in partner ownership
- Allows an unlimited number of transfers of partner capital
- Handles multiples of the following: passthrough K-1 activities; oil and gas wells; page 1 income and deduction properties; farm rent properties; rent and royalty properties; contributions of motor vehicles, boats, and airplanes; sales of section 179 property; like-kind exchanges of section 179 property; foreign transactions information; Forms 982, 3115, 4255, 4506, 4506-T, 4562, 4684 (Pages 2 through 4), 4797 (Page 2 only), 5471, 6252, 8082, 8275, 8275-R, 8283, 8308, 8594, 8609-A, 8611, 8621, 8820 (Page 2 only), 8824, 8825 (Page 2 only), 8833, 8858, 8883, 8886, 8910, 8918, 8936, 8938 (Page 3 only), 8949, FinCEN 114 (Pages 2 through 4), T (Timber), and W-9; Schedules A (8975), F (1040), J (5471), M (5471), M (8858), and O (5471); and all partner related forms, schedules, reports, and worksheets
- Prepares the following forms, schedules, reports, and worksheets per partner: Forms 8308 and 8805; Schedule K-1 (1065 / 8865); Schedule K-1 instructions; analysis of current year increase (decrease) worksheet; self-employment worksheet; qualified business income worksheet; foreign transaction worksheet; fuel credit information worksheet; sales of section 179 property worksheet; like-kind exchanges of section 179 property worksheet; oil and gas worksheet and report; section 108(i) election report; basis worksheet; and activities worksheet
- Supports calculation of the following Schedules K and K-1 separately stated items by activity: guaranteed payments, gains and losses, section 179 expense deduction, deductions for royalty income, preproductive period expenses, reforestation expense deductions, net earnings for self-employment, gross nonfarm income, all credits, all alternative minimum tax (AMT) items, and partners’ share of liabilities
- Accommodates an unlimited number of different tax preparers
- Transfers depreciation and amortization from Form 4562 to the relevant forms for all business activities
- Accommodates 1,000 installment sales and automatic depreciation recaptures for each client
- Handles up to 32,000 assets per client in the integrated asset module
- Handles up to 32,767 input screens per client
- Allows up to 65,500 statements
- Dynamically allocates client data as needed to minimize disk space requirements
- Accommodates 30,000 active clients at the same time