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Federal input screens

Screen C - Business Profit or Loss Page 1 (1041)

General Information

Principal business
The principal business or profession you enter in this field shows on Schedule C, line A and is used as the unit description for depreciation, the state allocation spreadsheet, and for the folders block.
State
Enter the postal code for the activity’s income to be state source. If you leave this field blank, the activity’s income is not state source.
Material participation
An activity is passive if it lacks material participation. To change the default status, use the
Passive activity code
 field on the C-2 screen.
Disposition of activity
Enter a code in the Disposition of activity field to indicate how an activity is disposed.

Income

Gross receipts or sales
Gross receipts or sales for this activity combine with entries on the 1099M screen in the Business folder.
Other income
Other income for this activity combine with entries on the 1099M screen in the Business folder.

Expenses

Depletion (Force)
The information you enter in this field does not calculate any limitations or tax preferences. This amount may allocate to beneficiaries based on the percentages you enter in the
Depletion
 field in the Beneficiary Information then Federal tab. The remaining amount displays on Schedule C, line 12.
Depreciation (Force)
You cannot allocate the force amount to beneficiaries; instead, the entire amount combines with the net income or loss calculated for this activity.
Meals (80% DOT limit)
Enter 100 percent of the expense of meals for employees subject to the hours of service limitations of the Department of Transportation (DOT). The allowable deduction calculates automatically.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1041 Fiduciary
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