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Screen KYAdj - Kentucky Income and Adjustments (1040)
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Overview
Use this screen to complete Form 740, 740-NP, and to enter amounts for Schedule M, Kentucky Federal Adjusted Gross Income Modification. Interest and dividend income is entered in the federal
B&D
, SDE
, K1
, and K1T
screens. These screens may be accessed by using the links provided in the KYAdj
screen. Interest and dividend data entered in the statement windows in these federal screens is utilized in the calculation of state income and adjustments. In those interest and dividend statement windows, you may indicate if data should be applied only to the federal or only to the state return. Use of the state postal code and In-State Source %
indicates which state should react to the data entered in the federal statements.- EnterFin theF/Sfield to indicate that the item is for the federal return only.
- EnterSin theF/Sfield and a non-KYpostal code inStateto indicate that the item transfers only to the state specified and is ignored for federal purposes.
- For Kentucky source interest and dividends reportable on part-year and nonresident Kentucky returns, you'll need to enterKYinStatein these federal statements. Further, for interest and dividends reportable as Kentucky source for nonresident Kentucky returns, you'll also need to enter a percentage inIn-State Source %.
- Interest from Municipal obligations and US Obligations from a pass-through entity and reportable in the federalK1andK1Tscreens may be adjusted by new fields in the federalK1-Stscreen. If data is entered in these fields in theK1-Stscreen, the total of all K1 or K1T data for that income type is adjusted by the requested amount for that K1 or K1T. The state return uses the adjusted amount in its calculations. See the federalK1-Stscreen for additional information.
Capital Gain or Loss Adjustment
Use this section when Kentucky prior-year capital losses differ from federal prior-year capital losses.
Short-term / Long-term capital loss carryover (Force)
Enter the Kentucky prior-year losses if different from the federal prior-year losses. The default is to use the amounts reported in the federal
CO
screen. Any amounts entered here are used in place of the federal reported amounts on the Recalculated for Kentucky Schedule D. The $3,000 limitation is part of this calculation.Capital gain / -loss adjustment (Force)
UltraTax/1040-KY automatically calculates the amount of capital gain / loss difference between federal Schedule D and Kentucky Schedule D as shown on Schedule M.
Capital gain/-loss adjustment (Force)
for the spouse should only be used for filing status married, filing separately on a combined return. UltraTax CS updates Schedule M, column A with the spouse amount and adjusts Schedule M, column B taxpayer amount by the spouse amount. Use these fields to override the calculated amount.Section 1231 Nonrecaptured Losses Carryover (Force)
Enter the Kentucky prior-year losses if different from the federal prior-year losses. The default is to use the amounts reported in the federal
CO
screen. Any amounts entered here are used in place of the federal reported amounts on the Recalculated for Kentucky Form 4797.Passive Activity Adjustment
UltraTax CS uses the amounts entered in this section to complete Kentucky Form 8582-K.
Passive activity adjustment (Force)
Use these fields to override the calculated passive activity adjustment.
Form 8582-K is calculated using Kentucky data entered in the federal activity screens. The passive activity adjustment is calculated based on the difference between federal losses and Kentucky losses used in the current year. Activity-by-activity calculations may be reviewed on the Kentucky Passive Activity / Carryover Deduction Worksheet and the Kentucky PTP - Passive Activity Deduction Worksheet. The total adjustment is summarized on the Kentucky Passive Activities Adjustment Worksheet. The Kentucky Partner’s / Shareholder’s Basis Worksheets and the Kentucky At-Risk Limitations Worksheet are automatically calculated based on data entered for the federal activity.
For Partnerships, S Corporations, estates and trusts, Enter current-year data in the federal
K1
, K1-2
, K1-3
, K1-4
, K1T
, and K1T-2
screens. Allocate the data in the Multi-State Allocation spreadsheet. Enter prior-year Kentucky passive carryover amounts for these activities in federal K1-St
screen or in the Multi-State Allocation Spreadsheet, if different than the proforma’d amounts.For other activities, enter current year data in federal
C
, F
, 4835
, and Rent
screens. Allocate amounts in the Multi-State Allocation spreadsheet.Enter prior-year Kentucky passive carryover amounts for these activities in the federal
St CO
screen or the Multi-State Allocation spreadsheet, if different than the proforma’d amounts.PAL Modified Adjusted Gross Income (Force)
Use this field to override the calculated PAL modified adjusted gross income used on Form 8582-K.
Itemized Deductions
UltraTax CS uses the amounts you enter in this section to complete Kentucky Schedule A, Itemized Deductions.
Leasehold interest property contributed for homeless
Enter the amount of any leasehold interest property contributed to a charitable organization to provide temporary housing for the homeless. Amounts entered here print on Schedule A. Attach Schedule HH to the return.
Contributions by cash or check (Force)
Use this field to enter an amount if different than the calculated amount. UltraTax CS automatically defaults to the amount reported on federal Schedule A.
Contributions other than by cash or check (Force)
Use this field to force (override) the non-cash contributions transferred from the federal
A
screen. If an item that transfers from UltraTax/1040 is different for Kentucky purposes, enter the correct amount here.Carryover contributions from prior years (Force)
Use this field to override the amount of carryover contributions from the
KYCO
screen that are used in the charitable contribution calculation.UltraTax CS uses Kentucky AGI information transferred from UltraTax/1040 and the information entered for charitable contributions and charitable contribution carryovers to calculate the limited deductible contributions on Kentucky Schedule A.
Artistic charitable contributions
Amounts entered here print on Schedule A when itemized deductions are taken. When the standard deduction is taken, amounts entered here transfer to Schedule M as other subtractions. For part-year and nonresidents the amount transfers as a negative amount to Form 740-NP, Page 4, as other income.
Other miscellaneous deductions
Information for the statement window transfers from the
Other expenses
statement window in the federal A
screen. Gambling losses and bond premium amortization are added at print time. If an item that transfers from UltraTax/1040 is different for Kentucky purposes, enter the correct amount here.