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Screen C-2 - Business Profit or Loss Page 2 and Passives (1041)

Cost of Goods Sold

Use this section to complete cost of goods sold information to complete Schedule C, Part III.

Auto Information

Use this section to enter vehicle information as requested on Schedule C, Page 2. If you are using the asset module for depreciation purposes, do
not
 enter vehicle information on this screen. If you prepare Form 4562 for this activity, this section is not completed on Schedule C.

Qualified Business Income Deduction

Activity qualifies as trade or business for section 199A deduction
If this field is blank, the activity will
not
 be included in the calculation of the qualified business income deduction (Section 199A).
Qualified business income (Force)
The Qualified Business Income deduction (QBID) calculates uses Schedule C, Page 1, net profit, and various additions and deductions from qualified business income. You can force a different amount here or enter zero (0) if the activity doesn't have any qualified income.
W-2 wages
If taxable income exceeds the threshold for QBID purposes, W2 wages are factored in as a limitation to the deduction. Enter the amount of W2 wages paid by the business.
Unadjusted basis or qualified property
If taxable income exceeds the threshold for QBID purposes, the unadjusted basis in qualified property is factored in as a limitation to the deduction. Enter the amount of the unadjusted basis of qualified property used in this business. When you use the asset module, the amount calculates and transfers to this field.

Other Information

Amount "at risk," if not 100%
The amount of loss for the current unit is limited to the amount you enter in this field. If you leave this field blank, 100 percent of the investment is considered at risk. Form 6198 is available as a non-calculating form.
Preference items
Enter the alternative minimum tax preference amounts in the statement. This information completes Schedule I.

Passive Activity Information

Passive activity code
Items coded
1
 are treated as passive. Entities coded
3
are treated as nonpassive. Income and losses are considered passive or active as follows:
  • If the current-year net income is less than the prior-year suspended losses, both prior-year suspended losses and current-year net income reports on Form 8582.
  • If the current-year net income is equal to or greater than the prior-year suspended losses, neither amount reports on Form 8582.
  • If there is a current-year net loss, only the prior-year suspended losses report on Form 8582.
Aggregation group
Units with the same aggregation number are reported as one item on the worksheets for Form 8582. All of the entities in an aggregation must have the same passive activity code.
Carryovers
Enter prior-year suspended losses as positive amounts for both Regular and AMT amounts. If there is no carryover amount, leave the fields blank.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary
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