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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 is the end-of-year capital percentage on Schedule K-1, item J calculated when the percentage is based on ending capital?

Answer

If the Compute partner end-of-year ownership percentage based on ending capital field is marked in Screen K1Misc in the Partner Info, Basis folder, UltraTax CS calculates the end-of-year capital percentage on Schedule K-1, item J as follows:

• If all partners' ending capital balances are greater than or equal to zero, UltraTax CS calculates the capital percentage for each partner by dividing each partner's share of ending capital by the sum of ending capital for all partners.
• If any partner's ending capital is less than zero, UltraTax CS calculates the capital percentage for each partner based on whether the partner's ending capital is greater than or less than zero.
  • For any partner whose ending capital is less than or equal to zero, UltraTax CS calculates the capital percentage as 0.000000%.
  • For any partner whose ending capital is greater than zero, UltraTax CS calculates the capital percentage by dividing the partner's share of ending capital by the sum of ending capital for all partners whose ending capital is greater than zero.

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