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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Business, farm, farm rent and rent income may be allocated for New Jersey purposes using the federal State allocation spreadsheet. For most states, the allocation spreadsheet is used to allocate income to part-year and nonresident returns. For New Jersey, the allocation spreadsheet may be used to allocate income to all residency types, for single state processing as well as multi-state processing.

Answer

• If you delete New Jersey from the client being processed, all New Jersey related allocation amounts are also deleted. If you add New Jersey to the client again at a later time, the allocated amounts must be re-entered for New Jersey.
• If you change a postal code in federal Screen C, F, Rent, or 4835 after an allocation has been entered, you may need to re-enter allocation amounts for affected states.
• If you change the federal income and expense amounts after an allocation has been entered, you should review any state allocation spreadsheet amounts that were present and re-allocate the new federal net income for that unit if necessary.
• If you delete a federal Screen C, F, 4835, or Rent, the related state allocation amounts are also deleted for that unit. New Jersey calculates with pre-passive / at-risk amounts. If the unit net income is limited by passive or at-risk rules, the amount that displays within the multi-allocation spreadsheet does not represent actual New Jersey income.

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