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Screen K1-St - State Information for Schedule K-1 (1120 / 1065 / 1041) (1040)

Overview

Schedule K1 - State Information

UltraTax CS transfers corresponding information entered in the K1, K1-2, or K1T screens for the
Form/Schedule
,
Unit
,
T, S, J
,
Description
, and
State
 fields to this section automatically. These fields contain information about the related Schedule K-1 unit activity. This information is used to gather and coordinate information for the activity. The table that follows lists the available forms and their applicable folder locations.
Folder
Form description
K1 1065, 1120S
Schedule E, Page 2
K1 1041
Schedule E, Page 2
To access the State allocation spreadsheet, the following conditions must be present in the current client.
  • The client being processed must include at least one state return.
  • You must be viewing Client Organizer Data Entry or Input Data Entry Screen.
  • For K1, K1-2, K1-3, K1-4, K1-5, K1-6, K1-7, K1T, and K1T-2, screens data must exist in the
    Name of entity
     field.
When these conditions have been met, access the spreadsheet by clicking the Allocation icon in this screen.
Two methods (percentage or amount) of allocation can be used 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 from the fieldview. Select the Apply button. UltraTax CS will automatically calculate the amounts attributable to that state and display the amounts in the spreadsheet. The percentage entered for that particular state will appear below the state name for easy reference. If enabled, individual item amounts can be changed (overwritten) on the spreadsheet from the amount calculated by UltraTax CS.
  • Amount:
     In cases where a percentage of the federal amounts do not apply, individual item amounts, if enabled, may be entered 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 left blank, the federal amount, if present, will be used in the state's calculation.
The State allocation spreadsheet may be printed 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.

State Passive Activity Carryovers and Other Information

Enter last year's state specific (California, Connecticut, Hawaii, Kentucky, Massachusetts, Montana, New York, Oregon, and Wisconsin only) regular and AMT (if applicable) passive-loss carryovers for this activity. In future years, this information will proforma automatically.
Adjustments to income
Use these fields to enter adjustments to state income from pass-through entities. The total U.S. obligation and municipal bond income should be entered in the Interest and Dividend statements on the K1 or K1T screens so the applicable amounts are included in federal tax calculations. The instate addition to state income or subtraction from instate income may be datashared from another entity or may be entered directly on this screen in the instate amount fields.
Enter the total municipal income addition that should be added to state income.
California:
 Adjustments to interest income are reported separately from adjustments to dividend income on the California return.
  • The amount entered here supersedes the component calculated from data entry in the statement for Interest and Dividends for this K1/K1T activity to be included on Schedule CA (540) or Schedule CA (540NR) as an addition to Taxable interest for non-California municipal interest.
  • An entry in this field also forces the Sch CA (540) or Sch CA (540NR) Dividends component for addition for non-California municipal interest to zero for this activity.
For part-year and nonresident returns, enter the portion of the total municipal income that should be added to state income.
California:
 Adjustments to interest income are reported separately from adjustments to dividend income on the California return.
  • The amount entered here supersedes the component calculated from data entry in the statement for Interest and Dividends for this K1/K1T activity to be included in the instate column of Schedule CA (540NR) as an addition to Taxable interest for non-California municipal interest.
  • An entry in this field also forces the instate portion of the Sch CA (540NR) Dividends component for addition for non-California municipal interest to zero for this activity.
Enter the total U.S. obligation income that should be subtracted from state income.
California:
 Adjustments to interest income are reported separately from adjustments to dividend income on the California return.
  • The amount entered here supersedes the component calculated from data entry in the statement for Interest and Dividends for this K1/K1T activity to be included on Schedule CA (540) or Schedule CA (540NR) as a subtraction to Taxable interest for U.S. Obligations.
  • An entry in this field also forces the Sch CA (540) or Sch CA (540NR) Dividends component for subtraction for U.S. Obligations to zero for this activity.
For part-year and nonresident returns, enter the portion of the total U.S. obligation income that should be subtracted from state income.
California:
 Adjustments to interest income are reported separately from adjustments to dividend income on the California return.
  • The amount entered here supersedes the component calculated from data entry in the statement for Interest and Dividends for this K1/K1T activity to be included in the instate column of Schedule CA (540NR) as a subtraction to Taxable interest for U.S. Obligations.
  • An entry in this field also forces the instate portion of the Sch CA (540NR) Dividends component for subtraction for U.S. Obligations to zero for this activity.
Enter the amounts from the K-1 Net gains (loss) from Disposition of Assets as a Result of a Complete liquidation. Gains upon liquidation are reported separately from the pass-through entity as personal gains. No data entry is required when data sharing the K-1.
New Jersey requires the income as calculated under New Jersey for the pass-through entity to calculate part-year and nonresident returns. Enter the all source income in this field. No data entry is required when data sharing the K-1.
  • For partnership income, enter the amount from the New Jersey K-1 for total distributed income reported in Part II, Column A, line 4, or the amount from the worksheet prepared according to New Jersey Publication GIT-9P to calculate the total income under New Jersey law for the taxpayer.
  • For S-corporation income, enter the amount from the New Jersey K-1 for pro rata share of S Corporation Income/Loss, or the amount from the worksheet prepared according to New Jersey Publication GIT-9S to calculate the total income under New Jersey law for the taxpayer.
  • For trust income enter the amount from the New Jersey K-1 for total distribution from Part II Beneficiary Share of Income. Do not include any amount from the Part III Grantor's Share of Income. These can be entered on the New Jersey NJK1T screen.
Enter other additions to income from pass-through entities. Iowa, Kentucky, and North Carolina pass-through entities include the addition to state income for municipal bond interest in their total K1 additions. Consequently, these state returns will include the addition in state income and will not report the municipal bond addition separately on the state return. If municipal bond interest is included in other additions, a zero should be entered in the municipal obligation addition field.
Enter other subtractions to state income from pass-through entities. Iowa, Kentucky, and North Carolina pass-through entities include the subtraction from state income for U.S. obligations in their total K1 subtractions. Consequently, these state returns subtract the applicable amount from state income. The subtraction for U.S. obligation income will not be reported separately for these state returns. If U.S. obligation interest is included in other subtractions, a zero should be entered in the
US obligations subtraction
 field.
For part-year of nonresident New Jersey returns, enter the portion of New Jersey gain or loss on disposition of assets.

Nonconforming State Adjustments

Use this section to enter state adjustments to pass-through income. These fields are enabled only for the states to which this adjustment applies when the income is not already included in another pass through income amount.
For more information, access the input screen topic for the appropriate state application by pressing F1 from within a state input screen. When processing for multi-state returns, use the allocation grid to enter the applicable amounts associated to the state in the fields provided in the PAL Carryovers Depr tab.
Enter the applicable state depreciation adjustments.
State
Details
DC
Transfers to Schedule I as either an addition or subtraction to income. Depreciation adjustments transfer to the District of Columbia Depreciation Reconciliation Worksheet before also being reported on Schedule I.
GA
Transfers to Schedule 1 as an addition or subtraction to income. Depreciation adjustments transfer to the Georgia Depreciation Reconciliation Worksheet.
ID
Transfers to Form 39R or 39NR as other additions or subtractions from income. Depreciation adjustments transfer to the Idaho Depreciation Reconciliation Worksheet.
IL
Transfers to Schedule M, Step 2, on the Distributive share of additions you received from a partnership, S Corporation, estate, or trust line and the subtractions on Schedule M, Step 3, on the Distributive share of subtractions from a partnership, S Corporation, trust, or estate line.
These fields are only used to update the necessary Schedule M fields in the following order, as required:
  1. Defaults to the Distributive share from Schedule K-1 (Force) field on the ILAdj screen, if blank.
  2. Uses the amount entered on Schedule K-1-P and K-1-T, if blank.
  3. Uses these fields.
These fields should not be used for electronically filed and data shared returns.
If the return is Data Shared, UltraTax CS will automatically complete the ILK1 and ILK1T input screens. For electronically filed returns that have a depreciation addition or subtraction, the ILK1 and ILK1T input screens must be completed.
IN
Do not
 include assets that qualify as special category property. The amount that datashares to this field reflects depreciation differences on assets that do not qualify for a special category.
To enter catch-up adjustments for special category assets such as qualifying restaurant improvement property, retail investment property, qualified leasehold improvement property, or motorsports entertainment complex property, use the INAdj-2 screen.
To enter adjustments for disaster assistance property or refinery property, use this screen or use the INDepr screen.
MD
Transfers as a decoupling modification reported on Form 500DM. The net effect of all decoupling modifications received from pass through entities prints on Form 500DM, and is reported as either an addition or subtraction from income using code 'DP' on Forms 502 and 505. Refer to the code guide at the bottom of Form 500DM for additional codes that may be used to describe these adjustments on the Maryland return. Decoupling adjustments do not transfer to the Maryland Depreciation Adjustment or Disposition of Assets Worksheets.
ME
Enter the bonus addback for current year assets as an addition and the bonus recapture for assets placed in service after January 1, 2008 as a subtraction. All prior Section 179 recapture and any bonus recapture for assets placed in service from 2002 to 2008 can be entered on the Maine MEDepr screen. These amounts will data share when available from the pass through entity.
NC
Transfers to the Depreciation Adjustment Worksheet.
Enter the applicable state adjustment required for the disposition of assets. Amounts entered here are used to calculate the applicable state pass-through adjustments and/or disposition or depreciation worksheets.
State
Details
GA
Transfers to Schedule 1 as an addition or subtraction to income. Disposition adjustments transfer to the Georgia Adjustment for Disposition of Assets Worksheet.
This field is not used for Indiana purposes. Instead, enter the net amount of elected Section 179 expense deduction under Indiana law for this activity in the
State, if different
 column or the Allocation spreadsheet on the federal K1-2 screen. The amount entered on the K1-2 screen is used in the calculation of elected Section 179 expense on line 6 of the Indiana Form 4562 Depreciation and Amortization Worksheet.
To report differences for allowed Section 179 expense deduction from K-1 activities on the Indiana Depreciation Reconciliation Worksheet for part-year residents or nonresidents, use the
Section 179 adjustment - K-1 Adjustment
 fields on the INDepr screen.
Several states do not comply with the ARRA deferral of income from the cancellation of debt reacquisition Section 108 (i). Enter pass through-related federally deferred debt cancellation income in the addition field for states that require the amount to be added into current year income. Enter the deferred debt that now is included in the federal income that has already been taxed by the state in the subtraction field.
State
Details
CA
California does not have this field enabled since the pass through income is built up via
State, if different
 fields.
DC
Transfers to Schedule 1 as an adjustment to income.
GA
Transfer to Schedule 1 as an addition or subtraction to income.
IN
Indiana calculates with amounts entered in the Indiana column only.
MA
Massachusetts does not have this field enabled, since the pass through income is built up via
State, if different
 fields.
ME
Transfers to the Schedule 1 as other additions or other subtractions. These amounts will data share when available from the pass through entity.
MO
For St. Louis profits returns, enter the current year section 108(i) debt cancellation, which will transfer for Form E-234 as an addition to income.
NJ
New Jersey does not tax cancelled debt.
Multi-state allocated debt cancellation and Part-year and nonresident states that calculate with both an "Everywhere" amount and a "State sourced" amount:
Unlike most other amounts available within the multi-state allocation spreadsheet, the Debt cancellation Section 108 (i) adjustment field does not have an associated federal field. Use the Other column in the Allocation Spreadsheet to balance all entries made to the actual total debt cancellation income. The in-state sourced amount is the amount entered for the applicable state.
Example:
 Iowa part-year resident and part-year resident of Oregon with a partnership located in Nevada.
Both Iowa and Oregon need "Everywhere" and "In State" amounts.
Total cancellation of debt income deferral passed through to partner:
$10,000
Portion taxable to Iowa:
$3,000
Portion taxable to Oregon:
$2,400
Multi-state Allocation Spreadsheet entry for the Debt cancellation Section 108 (i).
Oregon column, enter:
$2,400
Iowa column, enter:
$3,000
Other column, enter:
$4,600
Iowa return result:
Form IA126, includes the Iowa-source debt cancellation addition:
$3,000
Form IA1040, includes the total debt cancellation addition:
$10,000
Oregon return result:
Form 40P, displays $10,000 in the Federal column and $2,400 in the Oregon column
Multi-state allocated debt cancellation - processing a state that includes the income within another pass-through income amount with a state that does not:
Use the
Other
 column in the Allocation Spreadsheet to balance entries made to the actual total debt cancellation income. For part-year and nonresident states, the in-state sourced amount is the amount entered for the applicable state.
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