New (tax) year, new help!

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.

Allocation

Nonbusiness and passthrough income that is sourced to Illinois can be allocated on Screen ILAlloc, located in the Adjustments folder, and Screens ILK1 through ILK1-4, located in the K1 1065, 1041 folder, respectively.

Use the Allocated Items section on Screen ILAlloc to indicate whether rental and royalty income or loss is business or nonbusiness, and whether passthrough entity income should be apportioned or allocated. When any of these checkboxes are marked to indicate an activity is nonbusiness, UltraTax CS uses the state postal code on the applicable federal Screens Rent and 4835 to determine in-state and out-of-state rent, farm rent, and royalty nonbusiness income. When these fields are blank, these types of income are apportioned.

When Passthrough income is apportionable is marked on Screen ILAlloc, the Member share amounts on Screen ILK1, ILK1-2, ILK1-3, ILK1Frgn, and ILK1CODI are multiplied by the partnership's apportionment percentage to calculate state source income. When this field is not marked, UltraTax CS uses the Member Share to Illinois amounts on these screens to allocate passthrough income.

Apportionment

The State of Illinois apportions income using a single sales factor apportionment and is calculated on Form IL-1065, Line 42. Data entry for apportionment is located in View > Apportionment and alternate apportionment for financial organizations, transportation companies and federally regulated exchanges can be entered in the Illinois tab within the Apportionment grid. If no amounts are entered for apportionment in the Apportionment Information dialog, UltraTax CS assumes the client does 100% of business within the state. 

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