Screen K1T - Schedule K-1, 1041 (1040)

Unit

This field defaults to the next available number. You can override this number, but you cannot leave the field blank. The business unit activity uses this information to gather and coordinate information. For example, these fields enable information (such as income or loss, sales, credits, and asset detail) to be linked for the at-risk and passive calculations.

State

If you are processing a state return, enter the two-character postal code for the state to which this unit belongs. The various state applications use this code to help determine in-state and out-of-state amounts.

Grantor trust

Enter X
if the entity is a grantor trust.

Trade or business to which net investment income tax (NIIT) applies

All income from an estate or trust is assumed to be included in net investment income for Form 8960 when the K1T-3 screen field Passive activity code
is 1
or 2
.

Enter a code here to assign the net investment income treatment for this activity, if it is different from the default treatment. All income from the activity is treated based on this code, regardless of the passive and nonpassive designations reported on Schedule E.

State calculation - use state income as limited on Schedule E, page 2

Enter X
to use state income as limited by federal limitations on Schedule E, page 2. Basis, at-risk, and passive losses adjust state amounts by federal limitations. When this field is blank, associated state amounts transfer as entered in the State, if different
fields to the applicable state's AGI worksheet without any adjustments for federal limitations. The data entry in this field proformas from year to year.

City code/name

Enter the three-character city code for the city in which the activity is located. The various city tax applications use this code to aid in determining in-city and out-of-city income. After you select a city code, the City name
is filled automatically field.

Disposition of activity

Enter 1
for a complete disposition of the activity. Prior-year suspended passive losses are released and the activity, plus any other related input screens, will be deleted during next year's proforma process. If the activity has any passive activity credit carryforwards, it will proforma to keep the passive credits available to use against other passive income per Form 8582-CR instructions.

Enter 2
if this is a passive activity that was sold on an installment basis. Installment dispositions are treated as follows.

Any allowed losses for the current tax year are calculated by multiplying the overall loss by the ratio of current-year gain recognized, divided by unrecognized gain as of the beginning of the tax year. Losses in excess of the allowed amount are suspended and proforma'd to the following tax year.

When the gain recognized in the current year exceeds all of the current and carryforward losses, all losses are allowed in the current year. Also, data from any other related input screens will be deleted during next year's proforma process. Any activity that is coded 2
with no passive-loss carryovers, plus any other related input screens, will be deleted during next year's proforma process.

State, if different allocation

To access the State allocation spreadsheet, the current client must meet the following conditions.

The client being processed must include at least one state return.

You must be viewing Client Organizer Data Entry or Input Screen Data Entry.

For the K1, K1-2, K1-3, K1-4, K1-5, K1-6, K1-7, PBasis1, PBasis2, SBasis1, SBasis2, K1T, and K1T-2 screens, the Name of entity
field must contain data.

When these conditions have been met, select the Allocation icon to access the spreadsheet.

Use either of the following methods to allocate federal amounts to the applicable states displayed in the State allocation spreadsheet.

Percentage:
Enter a percentage in XXX.XX format in the first field available in the State allocation spreadsheet. Select the state to which this percentage applies, and select the Apply button. The amounts attributable to that state are calculated automatically and the amounts are displayed in the spreadsheet. The percentage for that particular state appears below the state name for easy reference. If enabled, you can change (overwrite) individual item amounts on the spreadsheet from the amount the calculated amount.

Amount:
In cases where a percentage of the federal amounts do not apply, enter individual item amounts, if enabled, in the spreadsheet for the applicable state. Zero (0) is a valid entry and will prevent the state amount from defaulting to the federal calculated amount. If an individual item amount field is blank, the federal amount, if present, will be used in the state's calculation.

You can print the State allocation spreadsheet in a report format for future reference. Select the Print or Preview button in the lower portion of the spreadsheet. If licensed, you can also print to FileCabinet CS.

Exporting and importing allocation information to and from Excel

You can use the state allocation spreadsheet in the K1 and K1T screens to quickly and efficiently export and import allocation information to and from UltraTax CS and a Microsoft Excel workbook.

Interest

If the client does not have any special types of interest income, enter the interest amount in the input screen, and not in the attached statement. Otherwise, use the attached statement to classify the interest income using the same codes as found in the Interest income
statement in the B&D screen. Any amount entered in the input screen is treated as fully taxable. The information entered in the attached statement affects the calculation of the client's federal and state tax returns as follows.

F/S:
Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. Enter S
for all but one of your duplicate line entries. The federal application disregards entries coded S
.

State processing:
Enter a percentage in the US Ob ($ or %)
field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to the state).

Municipal and Other Tax-Exempt Interest:

Enter the total tax-exempt interest (including interest income attributable to private activity bonds issued after 8/7/86) in the Tax Exempt Amount
field in the statement. This information transfers to the Tax-exempt interest line on Form 1040, Page 1. If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the AMT Int Income (PAB)
field in the statement. Amounts in this field will be used for only Form 6251, Alternative Minimum Tax, calculations and will transfer to the appropriate line of Form 6251.

State processing:
Enter a percentage in the In-State Muni ($ or %)
field to indicate the portion of the amount entered in the Tax Exempt Amount
field, if any, that is nontaxable to the integrated state.

In-State Source %:
This field is applicable only to part-year resident and nonresident state returns. In-State Source %
defaults to 100 percent for part-year state returns if the part-year resident state is entered in the State
field. However, In-State Source %
defaults to zero percent for all nonresident state returns and part-year state returns if the State
field is blank or does not match the part-year resident state being processed.

State:
Enter a state postal code, unless you are processing one resident state return or no state return. If the State
field is blank for a single resident state return, the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.

When processing two or more state returns, make duplicate line entries for those interest items that require different information for each state. For example, each state may require a different US Ob ($ or %), In-State Muni ($ or %), or In-State Source %. Enter a postal code to direct each line entry to a particular state return. When you use duplicate line entries, remember to enter S
in the F/S
field for all but one of your duplicate entries, so that the federal application disregards the "state only" entries. The state applications disregard entries with F
in the F/S
field and entries with S
in the F/S
field that also have an out-of-state postal code.

State Use:
The codes available in this field are specific to the state postal code entered in the State
field. If state use codes are not applicable to the entered state, this field will be disabled (shaded) in most instances (see the following note for a description of exceptions). Enter a code as applicable for processing the 1040 state return. The interest income state use codes and applicable states are listed in the table that follows.

State Use code	Applicable description	States
1	Tax credit bond interest	AL, GA, ID, KY, MD, MO, NE, NY
2	Subject to Income Tax	TN
3	Municipals purchased after 1/1/03 and subject to tax	UT*
4	Accounts Receivable - Intangibles	KS
5	Notes Receivable - Intangibles	KS
6	Bonds, Debentures & Certificates of Indebtedness	KS
7	Municipals purchased after 12/31/11 and subject to tax	IN
8	Bank, Credit Union, & Savings and Loans	KS, MA, OK, PHL
10	Non-taxable	HI, ME, NH, TN
11	Domestic international sales corporation	OR
13	Export Development Act bonds of 1983	IL
15	Housing Development Authority bonds and notes	IL
16	Tri-County River Valley Development Authority Bonds	IL
17	Dev Finance Authority (venture fund / infrastructure bond)	IL
18	Quad Cities Regional Economic Dev bonds and notes	IL
19	College Savings bonds	IL
20	Sports Facilities Authority bonds	IL
21	Higher Education Student Assistance Act bonds	IL
22	Dev Finance Authority (sections 7.8 through 7.87)	IL
23	Rural Bond Bank Act bonds and notes	IL
24	Dev Finance Authority (Asbestos Abatement Act)	IL
25	Quad Cities Interstate Metropolitan Authority bonds	IL
26	Southwestern Illinois Development Authority bonds	IL
27	Finance Authority bonds	IL
28	Guam bonds	IL
29	Puerto Rico bonds	IL
30	Virgin Island bonds	IL
31	American Samoa bonds	IL
32	North Mariana Islands bonds	IL
33	Mutual Mortgage Insurance bonds	IL
34	Student Assistance Corporation bonds	VT
35	Telecommunications Authority bonds	VT
36	Power Agency bonds	IL
37	Central Illinois EDA bonds	IL
38	Eastern Illinois EDA bonds	IL
39	Southeastern Illinois EDA bonds	IL
40	Southern Illinois EDA bonds	IL
41	Urban Development Authority bonds	IL
42	Downstate Sports Facilities bonds	IL
43	Western Illinois EDA bonds	IL
44	Upper River Valley Development bonds	IL
45	Will-Kankakee Regional Development Authority bonds	IL
46	Public Power Supply Authority Bonds	VT

Do Not Proforma:
Enter X
in this field to delete the item on next year's proforma.

Part-Year Resident Returns:

Enter a percentage and a postal code if a portion of the interest item is in-state source income. For example, enter 50.000
if the item is 50-percent in-state source income for the state indicated in the State
field. Enter 0.000
if none of the interest income amount is in-state source income for that state.

Nonresident Returns:

Enter 100.000
and a postal code if the interest item is all in-state source income for the nonresident state that corresponds to the entry in the State
field. Leave this field blank if none of the interest income amount is in-state source income for the state indicated in the State
field.

Dividends

If client does not have any special types of dividend income, enter the dividend amount in the input screen and not in the attached statement. Otherwise, use the attached statement to classify the dividend income using the same codes and fields as found in the Dividend Income
statement in the B&D screen. The information that follows describes how information entered in the attached statement affects the calculation of the client's federal and state tax returns.

F/S:
Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In the F/S
field, enter S
for all but one of the duplicate line entries. The federal application disregards entries coded S
.

State processing:
Enter a percentage in the US Ob ($ or %)
field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to the state).

Municipal and Other Tax-Exempt Dividends:

Enter the total tax-exempt dividends (including dividend income attributable to private activity bonds issued after 8/7/86) in the Tax Exempt Amount
field in the statement. Items in this field transfer to the Tax-exempt interest line on Form 1040, Page 1. If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the AMT Exempt Div (PAB)
field in the statement. Amounts in this field are used for Form 6251, Alternative Minimum Tax, calculations.

State processing:
Enter a percentage in the In-State Muni ($ or %)
field to indicate the portion of the amount entered in the Tax Exempt Amount
field, if any, that is nontaxable to the state.

Payer:
Enter the payer name. A custom fieldview is available in this field.

Ordinary Dividend:
Enter ordinary dividend amounts from Schedule K-1. Do not enter tax-exempt dividends in this field.

Qualified Dividend:
Enter qualified dividend amounts from Schedule K-1. Do not enter tax-exempt dividends in this field.

Tax Exempt Amount:
Enter total tax-exempt dividend amounts (including dividend income attributable to private activity bonds issued after 8/7/86). Do not enter tax-exempt interest in the Ordinary Dividend
or Qualified Dividend
fields.

AMT Exempt Div (PAB):
Enter dividend income attributable to private activity bonds issued after 8/7/86. Form 6251 calculations uses the amounts in this field. You must also enter the amount in the Tax Exempt Amount
field for Schedule B purposes.

US Ob ($ or %):
For state processing, enter a percentage if any portion of the dividend income is attributable to U.S. government obligations (nontaxable to the state). For example, enter 12.5000
in this field if the item is 12.50 percent attributable to U.S. government obligations; enter 25
in this field if $25 of interest is U.S. government interest. Note that the US Ob ($ or %)
field is applicable only for dividend items entered in the Ordinary Dividend
field. UltraTax CS disregards a US Ob ($ or %) entry for items entered in the Tax Exempt Amount
and AMT Exempt Div (PAB)
fields.

In-State Muni ($ or %):
For state processing, enter a percentage to indicate the portion of the municipal or other tax-exempt dividend income (items entered in the Tax Exempt Amount
field) that is nontaxable to the integrated state. For example, enter 8.000
in this field if the item is 8.0 percent attributable to municipal obligations of the integrated state; enter 50
in this field if $50 of the tax exempt interest is attributable to municipal obligations of the integrated state. Note that the In-State Muni ($ or %)
field is applicable only for dividend items entered in the Tax Exempt Amount
field. UltraTax CS disregards an In-State Muni ($ or %) entry for items entered in the Ordinary Dividend
and AMT Exempt Div (PAB)
fields.

In-State Source %:
This field is applicable to only part-year resident and nonresident state returns. the In-State Source %
field defaults to 100 percent for part-year state returns if the part-year resident state is entered in the State
field. However, the In-State Source %
field defaults to zero percent for all nonresident state returns and part-year resident state returns if the State
field is blank or does not match the part-year resident state being processed.

State:
Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank State
field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.

When processing two or more state returns, make duplicate line entries for those dividend items that require different information for each state. For example, each state may require a different In-State Muni ($ or %) or In-State Source %. Enter a postal code to direct each line entry to a particular state return. When you use duplicate line entries, remember to enter S
in the F/S
field for all but one of your duplicate entries, so that the federal application disregards the "state only" entries. The state applications disregard entries with F
in the F/S
field and entries with S
in the F/S
field that also have an out-of-state postal code.

State Use:
The codes available in this field are specific to the state postal code entered in the State
field. If state use codes are not applicable to the entered state, this field will be disabled (shaded) in most instances (see the following note for a description of exceptions). Enter a code as applicable for processing the 1040 state return. The dividend income state use codes and applicable states are listed in the table that follows.

State Use code	Applicable description	States
1	Subject to Intangibles	KS
2	Subject to Income Tax	TN
3	Municipals purchased after 1/1/03 and subject to tax	UT*
5	Regulated Investment Co. Dividends - U.S. Obligations	NE
8	Banks, Credit Unions, & Savings and Loans	MA, OK
10	Nontaxable	ME, NH, PHL, TN
13	Export Development Act bonds of 1983	IL
15	Housing Development Authority bonds and notes	IL
16	Tri-County River Valley Development Authority Bonds	IL
17	Dev Finance Authority (venture fund / infrastructure bond)	IL
18	Quad Cities Regional Economic Dev bonds and notes	IL
19	College Savings bonds	IL
20	Sports Facilities Authority bonds	IL
21	Higher Education Student Assistance Act bonds	IL
22	Dev Finance Authority (sections 7.8 through 7.87)	IL
23	Rural Bond Bank Act bonds and notes	IL
24	Dev Finance Authority (Asbestos Abatement Act)	IL
25	Quad Cities Interstate Metropolitan Authority bonds	IL
26	Southwestern Illinois Development Authority bonds	IL
27	Finance Authority bonds	IL
28	Guam bonds	IL
29	Puerto Rico bonds	IL
30	Virgin Island bonds	IL
31	American Samoa bonds	IL
32	North Mariana Islands bonds	IL
33	Mutual Mortgage Insurance bonds	IL
34	Student Assistance Corporation bonds	VT
35	Telecommunications Authority bonds	VT
36	Power Agency bonds	IL
37	Central Illinois EDA bonds	IL
38	Eastern Illinois EDA bonds	IL
39	Southeastern Illinois EDA bonds	IL
40	Southern Illinois EDA bonds	IL
41	Urban Development Authority bonds	IL
42	Downstate Sports Facilities bonds	IL
43	Western Illinois EDA bonds	IL
44	Upper River Valley Development bonds	IL
45	Will-Kankakee Regional Development Authority bonds	IL
46	Public Power Supply Authority Bonds	VT

Do Not Proforma:
Enter X
in this field to delete the item on next year's proforma.

Part-Year Resident Returns:

Enter a percentage and a postal code if a portion of the dividend item is in-state source income. For example, enter 50.000
in this field if the item is 50 percent in-state source income for the state as indicated in the State
field. Enter 0.000
in this field if none of the dividend income is in-state source income for that state.

Nonresident Returns:

Enter 100.000
and a postal code if the dividend item is all in-state source income for the nonresident state that corresponds to the State
field entry. Leave this field blank if none of the dividend income is in-state source income for the state indicated in the State
field.

Net short-term capital gain

Enter the short-term portfolio capital gains as reported on Schedule K-1 (Form 1041). If the activity has a passive capital gain, enter the information in the statement attached to the Schedule for detail
field in the B&D screen instead of in the K1T screen. Passive capital gains in the statement in the B&D screen and coded B
(business) are linked to the K1T activity by completing the Form
and Unit
fields in the statement. Do not enter the same gains or losses in both the B&D and K1T screens. Gains and losses entered in the statement in the B&D screen that are not coded B
(business) will be treated as portfolio, not passive.

Net long-term capital gain

Enter the long-term portfolio capital gains as reported on Schedule K-1 (Form 1041). They are subject to at-risk limitations, if applicable. If the activity has a passive capital gain, enter the information in the statement attached to the Schedule for detail
field in the Schedule D / Form 8949 Sales of Capital Assets section of the B&D screen instead of in the K1T screen.

Passive capital gains entered in the statement in the B&D screen and coded B
(business) in the Type
field are linked to the K1T activity by completing the Form
and Unit
fields in the statement. Do not enter the same gains or losses in both places. Gains and losses entered in the statement in the B&D screen that are not coded B
(business) in the Type
field will be treated as portfolio, not passive.

Capital gain from passive activities

Enter the amount of the total net long-term capital gain that is from passive activities. The passive calculation uses the amount in this field. If the activity has a passive net short-term gain or net 28-percent capital gain, enter the information in the B&D screen.

Other portfolio and nonbusiness income

Amounts in these fields transfer to Schedule E, line 33, column (f) Nonpassive - Other income from Schedule K-1.

Ordinary business income

Enter the ordinary income or loss from the activity. This information is used to determine the income or loss to report on Schedule E, Page 2. The passive activity code entered in the K1T-3 screen determines whether the amount is reported as passive or nonpassive on Schedule E.

Net rental real estate income

Enter the net income or loss from the rental of real estate activities. This information is used to determine the income or loss to be reported on Schedule E, Page 2. The passive activity code entered in the K1T-3 screen determines whether the amount is reported as passive or nonpassive on Schedule E.

Other rental income

Enter the net income or loss from other rentals. This information is used to determine the income or loss to be reported on Schedule E, Page 2. The passive activity code in the K1T-3 screen determines whether the amount is reported as passive or nonpassive on Schedule E.

Depreciation / Depletion / Amortization

Enter the amount as reported on the Schedule K-1 (Form 1041). This information is used to determine the income or loss to be reported on Schedule E, Page 2. The passive activity code in the K1T-3 screen determines whether the amount is treated as passive or nonpassive.

Charitable code/contributions

Enter the amount of charitable contributions reported by the trust. The contribution defaults to the type limited to 60 percent of adjusted gross income and the amount entered is subject to limitation on Schedule A. If the type of contribution is subject to a different limitation or is noncash, enter the applicable code.

Section 1202 gain subject to 50% / 60% / 75% / 100% exclusion

Enter the amount of long-term capital gain that is eligible for section 1202 exclusion. The percentage allowed is calculated as an exclusion and is entered as a reduction on Schedule D for the section 1202 exclusion. The amount after exclusion is also included in the 28% Rate Capital Gain Tax Worksheet, on Form 4952, and as nonbusiness capital gain in the NOL Worksheet.

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Screen K1T - Schedule K-1, 1041 (1040)