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Federal input screens

Screen K1 - Schedule K-1, 1065 / 1120S - General Information (1040)

The next available number defaults in this field. You can overwrite the data in this field (this won't re-order the K1 unit), but you can't leave it blank. This information is used to gather and coordinate information for the business unit activity. For example, these fields enable information (such as income or loss, sales, credits, and asset detail) to be linked for the basis, at-risk, and passive calculations.
Select the taxpayer or spouse code and employer's identification number in the corresponding fields to share financial and non-financial data to and from the K1 screen. Data can't be shared if either of these fields are blank or if
J
 is selected in the
T, S, J
 field.
The entity name in this field is used as the unit description. This field must contain data for Schedule K-1 to process data.
Enter the 2-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. Note that you must enter a postal code for state processing to work properly.
The code you select here determines the type of entity on Schedule E, Page 2. Select
3
 to mark the foreign partnership boxes on Schedule E, Page 2. Select
4
 to determine the entity's tax treatment as a Publicly traded partnership. This code supersedes the passive activity code entered later in the K1-2 screen.
Enter
X
 if the Schedule K-1 received by the partnership or S Corporation was marked as the final K-1. When this field is marked, the K1 unit won't proforma to next year unless there are passive credit carryovers or the entity was a passive activity disposed on installment basis and carryovers exist.
Select the type of partner. If this field is blank, the partner defaults to a general partner or LLC member-manager. When
2
 - Limited or other LLC member is selected, the calculation of net earnings from self-employment excludes separately stated items for section 179 expenses, unreimbursed partner expenses, auto expenses, amortization, depreciation, depletion, home office expenses, debt financed acquisition interest, and other expenses. This treatment is in accordance with the Schedule SE instructions and the partner's Schedule K-1 instructions.
By default, K1 units with the same EIN and TSJ code will combine basis information into one worksheet. Only the K1 entity with the lowest unit number is used. When a Schedule K-1 contains more than 1 activity, you can make separate activity units to provide for various limitations. The income and losses from each activity are combined on 1 Basis Worksheet for the entity. Losses are allocated to the activities with losses.
To qualify for the section 1202 exclusion from a pass-through entity, the shareholder/partner must have held the interest on the date the pass-through entity acquired the qualified small business stock and at all times thereafter until the stock was sold. Enter
X
 in this field to indicate the shareholder/partner qualifies to take the exclusion. Because the qualified small business stock gain isn't included in the
Net long-term capital gain(loss)
 field, the entire section 1202 gain reports on Form 8949, Part II, Box F. When this field is marked, the section 1202 exclusion will report the appropriate adjustment on Form 8949, Part II, Box F, line 1, column g.
Enter the partner's share of gross foreign earned income and expenses for Forms 2555 and/or 1116. See “Partner’s Share of Foreign Earned Income and Expenses” for more details. The 1116, 2555, and 2555-2 screens require additional information to report this activity on Forms 1116 and/or 2555. Please refer to those applicable screens for further information.
Enter the partner’s share of foreign earned income and expenses on the K1 screen in the Form 2555 share of gross foreign earned income/expenses statement. Additional information on the statement fields is as follows:
  • Code
    : Select the code that represents the appropriate allocation of the entity's foreign earned income and operating expenses, or use the fieldview to make your selection.
  • Foreign Income Type
    : Enter the type of income for this entity. This reports on Form 2555, Page 2, line 20b as required.
  • Partnership Name if Different
    : Enter the partnership name, if different than the entity name in the K1 screen. This information reports on Form 2555, Page 2, line 20b.
  • Share of Foreign Earned Income
    : Enter the partner's share of partnership gross foreign earned income. This amount reports on Form 2555, Page 2.
  • Share of Foreign Expenses
    : Enter the partner's share of partnership expenses directly related to foreign earned income. This amount reports as a deduction allocable to excluded income.
The Form 2555 Allocation Worksheet reports the allocation between U.S. and foreign earned income. The Form 2555 exclusion calculation uses income calculated as foreign earned during the assignment. Form 1116 reports foreign earned income less any applicable exclusion as eligible for the foreign tax credit. This activity's allocation code is used to allocate any related self-employment items.
Enter
X
 to use state income as limited by Federal limitations on Schedule E, page 2, which adjusts state amounts for basis, at-risk, and passive losses. When not marked, state amounts in the
State, if different
 fields transfer to the applicable state's AGI Worksheet with no Federal limitation adjustments. This field proformas from year to year.
In the statement, enter the applicable state use code for processing the 1040 state return and the appropriate ID number for the state return selected.
Code
Description
State number
1
Form OP-424: CT
Enter 7-digit SOS ID number.
2
Form IT-204-LL: NY
State number isn't applicable.
3
Form 568: CA
Enter the 7, 9, 10, 11 or 12 digit SOS file number. If no number has been assigned, enter
None
,
None 1
, etc.
4
FAE 170: TN
Enter Tennessee account number. If no number has been assigned, enter
None
,
None 1
, etc.
5
Form 725: KY
Enter Kentucky 6-digit LLC account number.
7
Form 05-158: TX
Enter 10-digit SOS file number.
8
Tax identification number: HI
Enter Hawaii general/excise use 12-digit tax identification number. Don't include letters or dashes.
10
Qualified oil & gas activity: MI
State number isn't applicable.
11
Personal service income: SC
State number isn't applicable.
12
Form PPT: AL
Enter 6-digit SOS file number.
13
Form RI-1065: RI
Enter 9-digit SOS ID number.
15
Form LLC Annual Report: MA
Enter the 9-digit ID number assigned by the Secretary of Commonwealth.
16
LLC Franchise Tax Report: AR
Enter the 9-digit Arkansas filing number.
17
Form MTA: NY
State number is not applicable.
18
Qualifies for pass-through entity reduced tax rate: OR
State number isn't applicable.
19
Forms PHL NPT/BIRT: PA
Enter the 7-digit Philadelphia account number.
20
Schedule CT-EITC: CT
Enter 10- to 13-digit state Tax ID number.
21
Schedule DE: WI
State number isn't applicable.
To activate CA, KS, KY, MA, NC, NY, PA, TN, and TX LL/LLC returns, select
File
,
Client Properties
, the state tab, and mark the checkbox for the form/return in the
Other return(s)
 group box.
Enter the 3-character code for the city where the activity is located. Various tax applications use this code to determine in-city and out-of-city income. When you select a city code, the
City name
 field fills automatically.
If the taxpayer is married, files a separate federal return, and resides in 1 of the following community property states - AZ, CA, ID, LA, NM, NV, TX, WA, or WI (or for registered domestic partners, files a Single or Head of Household federal return, and resides in CA, NV, or WA) - use this field to identify whether or not the Schedule K-1 income/loss is generated from community property. By default, if this field is blank, it is treated as community property, and an entry of
N
 is treated as non-community property (i.e. separate property). Sch K-1 units indicated as community property will be allocated 50/50 to the taxpayer and the spouse when 2 separate clients are created via the Filing Status Optimization utility with the Split income according to Community Property rules option enabled.
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