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.

Question

How does UltraTax CS calculate the gain recognized on excess non-dividend distributions?

Answer

UltraTax CS calculates the gain on excess non-dividend distributions by taking the difference between the shareholder's stock basis before any current year reductions for total losses and deductions, and the current-year non-dividend distribution for the shareholder. If the non-dividend distribution exceeds the stock basis, a gain is calculated on the Shareholder's Basis Worksheet, Page 1, and transfers to the Schedule K-1 statements, Box 17, code for Other Information. Non-dividend distributions do not reduce the shareholder's loan basis.

If you want to change the amount of gain that is shown in the K-1 statements, enter an amount in the Gain on excess distributions (Force) field in the Stock tab in View > Shareholder Information > Other Info tab > Shareholder Basis dialog. If you do not want any gain to show in the K-1 statements, enter 0 (zero) in this field. The Shareholder’s Basis Worksheet does not reflect amounts entered in the Gain on excess distributions (Force) field.

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