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Federal input screens

Screen K1-2 - 1065 and 1120S Pass-Through Deductions (1041)

Overview

Use this screen to enter Schedule K-1 information that the client received from an S Corporation or partnership. There are line reference numbers on the left side of the input screen that correspond to the lines on an 1120S or 1065 Schedule K-1. This will help you determine where you should enter each Schedule K-1 item.

Deductions

Portfolio deductions - misc (for state use only)
Amounts in this field allocate as a direct deduction against the portfolio income of this activity. If you’d rather allocate this amount as an indirect expense against all income in the return, enter the deduction on the Deduct screen. Miscellaneous deductions are only used by states that opt out of the Tax Cuts and Jobs Act change that eliminated them as a deduction at the federal level.
Portfolio deductions - other
Amounts in this field allocate as a direct deduction against the portfolio income of this activity on the Partnership/S Corporation Worksheet. If you’d rather allocate this amount as an indirect expense against all income in the return, you should enter the deduction on the Deduct screen.
Depreciation adjustment
Enter any section 754 or other depreciation adjustment from Schedule K-1 (Form 1065), line 11. Enter the beneficiary portion of this amount in the
Beneficiary share of depreciation, excluded on Schedule E
field. If you enter the amount in both fields, the entire expense is deducted on Schedule K-1 (1041) rather than on Schedule E, Page 2.
Beneficiary share of depreciation, excluded on Schedule E
This amount transfers to the beneficiaries’ Schedules K-1 proportionally based on the depreciation percentages you enter in View, Beneficiary Information, Federal tab, then Other Allocations. This amount also adjusts the income reported on Schedule E, Page 2.
Schedule E depletion expense: Page 1
Enter any depletion deduction attributable to this activity’s royalty income not entered in the UltraTax/Oil & Gas module . The beneficiaries’ shares of this amount transfers to Schedule K-1, box 9, code B based on depletion percentages you enter in View, Beneficiary Information, Federal tab, then Other Allocation and prints the remaining portion on Schedule E, Page 1, line 18.
Schedule E depletion expense: Page 2
Enter any depletion deduction attributable to this activity’s portfolio income not entered in the UltraTax/Oil & Gas module . The beneficiaries’ shares of this amount transfers to Schedule K-1, box 9 based on depletion percentages you enter in View, Beneficiary Information, Federal tab, then Other Allocation and adjusts the income on Schedule E, Page 2, line 28 by the remaining portion.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1041 Fiduciary
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