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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

How does UltraTax CS change the ordering of distributions when the election to distribute accumulated E&P first is made?

Answer

UltraTax CS automatically prints the election to distribute accumulated E&P first when the Election to distribute accumulated E&P first field is marked in Screen Ms in the Balance Sheet folder.

Enter distribution in the Distributions field in the AAA column in Screen Ms.

UltraTax CS applies the following ordering when excess distributions are entered in the Accumulated Adjustment Account column.

1. Accumulated E&P to the extent the distribution does not reduce the account below zero. .
2. Undistributed Previously Taxed Income (PTI) to the extent the distribution does not reduce the account below zero.
3. Accumulated Adjustments Account (AAA) to the extent the distribution does not reduce the account below zero.
4. Other Adjustment Account (OAA) to the extent the distribution does not reduce the account below.
5. Any remaining distribution reduces the Retained Earnings Timing Differences (REU) account.

If you want to use a different ordering of the distributions, enter the amount of distribution (including zero) in the respective column. For example, if you have a beginning balance in PTI, but do not want UltraTax CS to allocate a distribution to this account, enter 0 (zero) in the Distributions field in the Undistributed Previously Taxed Income column.

If you only want to print the election to distribute accumulated E&P first, but do not want to change the ordering of distributions, select the Distribute Accumulated E&P First election from the Election Description fieldview in the Election statements section on Screen Elect and do not mark the Election to distribute accumulated E&P first field in Screen Ms.

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