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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.

Generally, guaranteed payments must be re-allocated at the Pennsylvania level. Use the PAInc screen, located in the Income & Adjustments folder, to re-allocate guaranteed payments. UltraTax CS will default to the federal amounts only when the guaranteed payments are from business activities. If there are only rentals, or a combination of business and rental guaranteed payments, they must be re-allocated at the state level. 

Per PA-20S/65 Schedule M, Part B, Section E, line d form instructions: "Differences in Pennsylvania Treatment of Guaranteed Payments for Capital Please refer to Chapter 16 in the Pennsylvania Personal Income Tax Guide, Page 12, 4c". If amounts are entered for "Guaranteed payments from rental activities" and "for capital or other service," the guaranteed payments entered as "for capital or other services" are being treated as a return of capital. An adjusting entry will need to be made on the PARent screen for the corresponding guaranteed payment.

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