Processing 1041 federal returns

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This topic provides general information about the 1041 federal application and processing guidelines.

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 Sale, for example, is a multiple-unit input screen that enables the use of a separate input screen for reporting each sale. The following table lists the UltraTax/1041 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 of 32,767 input screens.

Multiple-unit input screen Number of units possible
Screen 56, Fiduciary Relationship No practical limit
Screen 114-2, Report of Foreign Bank Accounts, Page 2 No practical limit
Screen 1099M, Miscellaneous Income No practical limit
Screen 1099R, Retirement Distributions No practical limit
Screen 1116, Foreign Tax Credit No practical limit
Screen 2439, Shareholder Undistributed Long-term Capital Gains No practical limit
Screen 3115, Change in accounting Method No practical limit
Screen 3520, Transactions with Foreign Trusts, Receipt of Foreign Gifts No practical limit
Screen 4562, Depreciation & Amortization 5,000
Screen 4684B, Business Casualty and Theft Loss No practical limit
Screen 4684PY, Prior Year Business Casualty and Theft Loss No practical limit
Screen 5471, Foreign Corporation No practical limit
Screen 8275, Disclosure Statements No practical limit
Screen 8621, Passive Foreign Investment or Electing Fund No practical limit
Screen 8824, Like-Kind Exchanges No practical limit
Screen 8938-2, Statement of Specified Foreign Financial Assets, Page 2 No practical limit
Screen Broker, Consolidated Broker Statement No practical limit
Screen C, Business Profit or Loss, Page 1 5,000
Screen Cr, Business Credits 5,000
Screen F, Farm General and Income 5,000
Screen InstPY, Prior Year Installment Sale 5,000
Screen J, Accumulation Distributions 5,000
Screen K1, 1065 and 1120-S Pass-Through General and Income No practical limit
Screen K1Sale, Section 179 Pass-Through Sale No practical limit
Screen K1T, 1041 Pass-Through General, Income, Deductions, Final Year No practical limit
Screen NOL-2, Net Operating Loss Carryovers 2
Screen OGCost, Oil and Gas Cost Centers 5,000
Screen OGWell, Oil and Gas Well Information 5,000
Screen Ponzi, Revenue Procedure 2009-20 (Ponzi) No practical limit
Screen Rent, Rent and Royalty Property 5,000
Screen Sale, Sale of Business Property 5,000
Screen StPmt, State Payments No practical limit
Screen W2, Wages No practical limit
Screen W2G, Gambling Winnings No practical limit

For information about accessing multiple-unit input screens, see Multiple-unit input screens.

The following states and municipalities are available for UltraTax/1041.

Alabama Arizona Arkansas
California California PPT Colorado
Connecticut Delaware District of Columbia
District of Columbia PPT Florida PPT Georgia
Georgia PPT Hawaii Idaho
Illinois Indiana Indiana PPT
Iowa Kansas Kentucky
Kentucky PPT Louisiana Maine
Maryland Maryland PPT Massachusetts
Michigan Michigan MBT Michigan PPT
Minnesota Mississippi Missouri
Montana Nebraska Nebraska PPT
New Hampshire New Jersey New Mexico
New York North Carolina North Dakota
Ohio Oklahoma Oregon
Pennsylvania 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 included in UltraTax/1041.

  • Activity unit numbers: Activity unit numbers are generally used to tie several screens together. For instance, the information coded as 4562, Form F, Unit #1 is linked to Screen F, Unit #1.
  • Oil / gas depletion: UltraTax CS assumes that all producers are small producers. Therefore, the disallowance of percentage depletion does not occur for larger producers.

The following list outlines the capacities of UltraTax/1041.

  • Accommodates 1,000 installment sales and automatic depreciation recaptures for each client.
  • Handles multiples of the following: Rent and royalty properties; oil / gas wells; Schedules C, F, and J; and Forms 1099-R, 56, 114 (Pages 2 and 3), 1116, 3520, 3800 (Page 3), 4562, 4684 (Pages 2 and 3), 4797 (Page 2), 5471, 6252, 8275, 8275-R, 8858, 8621, 8824, 8938 (Page 3), W2, and W2G.
  • Transfers depreciation and amortization from Form 4562 to the relevant forms for all business activities.
  • Accommodates up to 50 different tax preparers.
  • Handles dollar amounts ranging from -$999,999,999 to $999,999,999.
  • Allows up to 5,000 units of each multiple-unit input screen.
  • Handles up to 32,000 assets per client in the integrated asset module.
  • Dynamically allocates client data as needed to minimize disk space requirements.
  • Accommodates 30,000 active clients at the same time.
  • Allows up to 65,500 statements.
  • Allows for 3,500 beneficiaries.

The following tips pertain to using UltraTax/1041.

UltraTax/1041 automatically completes the Beneficiary number fields on Schedule K-1 and the Grantor / Agency Report. This information can be suppressed by entering X in the Suppress: Printing beneficiary numbers checkbox on Screen Allocate in the Allocation folder. The beneficiary number is used in conjunction with the Beneficiary Summary Worksheets so the information on the worksheets can be related to the specific beneficiary.

Note: To select this option for all clients you subsequently add, choose Setup > 1041 Fiduciary > Federal tab, click the New Client Options button, and mark the Suppress printing beneficiary numbers checkbox.

In UltraTax CS, there are two methods to force a particular form to print.

To have general footnote information appear on all of the beneficiaries' Schedules K-1, enter the information in the Schedule K-1 / Grantor Report general footnote field on Screen 1041. This information also prints on the Grantor / Agency Report when the Type of entity is Grantor trust or Agency relationship. If general footnote information applies to a specific beneficiary, enter the information in the Additional information field in the View > Beneficiary Information > Beneficiary tab. The information from the applicable statement dialog appears on the bottom of the Grantor / Agency Report as applicable or in a statement that prints for each Schedule K-1 or Grantor / Agency Report.

Note: This information does not print on the Grantor / Agency Report when the type of entity is a qualified subchapter S trust or a partial grantor trust. Enter additional data in the Qualified subchapter S trust – Additional information field in the View > Beneficiary Information > Federal tab or in the Additional information field in the View > Beneficiary Information > Federal tab > Partial Grantor section to include that information on the Grantor / Agency Report for those types of returns.

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