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Screen HIK-2 - Hawaii Schedule K Deductions (1065)
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Overview
Use this screen to complete the Deductions and Everywhere Column Allocation amounts for Hawaii Schedule K. If information transferred from the federal screens doesn't require additional data or coding, the Hawaii application shows it on the form only, not in the input screen.
UltraTax CS uses amounts entered in the federal screens, adjusted for differences between Hawaii and Federal tax law, for Form N-20, Page 2. All statement items are transferred from the federal screens to these statements. To change amounts for the Hawaii return, enter data in the boxes or statements in this input screen.
Items that are calculated and automatically transferred from other Hawaii input screens to Schedule K are listed here.
- Line 13, section 179 expense deduction
- Line 15, Loss from Form 4684, line 35
- Line 15, Hawaii depreciation and amortization amounts from all activities (that were specially allocated and not reported within the associated activity)
note
Enter Hawaii amounts only when there is a difference between the Attributable Everywhere Schedule K amount and the Attributable to Hawaii Form N-20, Schedule K amount. If blank, the Attributable to Hawaii amount automatically defaults to the Attributable Everywhere Schedule K amount.
Deductions
Section 179 expense (Force)
If desired, force UltraTax CS to use a specified section 179 expense amount. To do so, enter the desired amount, including
0
(zero). If this box is blank, UltraTax CS uses the calculated section 179 expense amount. UltraTax CS calculates Section 179 expense as described here.Detailed asset data entry determines the qualified section 179 property placed in service in the current year. If the cost of qualified assets exceeds $200,000, the application limits the total expense for the year as required. (Note that the amount of qualified assets can be forced in the HIDepr screen.)
UltraTax CS then calculates the section 179 expense amount by first limiting the current-year amount to $25,000. It adds that amount to the carryover entered in the HIDepr screen and then applies the $25,000 and $200,000 limitations. Finally, the application limits the result to business income.
UltraTax CS defines business income as ordinary income (Schedule K, line 1) plus net other rental income (line 3) plus net royalty income (line 7) plus net 1231 gains (line 10) plus guaranteed payments (line 4).
To include a particular rental real estate activity in the business income calculation, mark
Include net income / loss in calculation for section 179 business income
in the HIRent screen. Force the business income limitation by entering an amount in Business income limitation (Force)
in the HIDepr screen. The forced amount is used in the calculation of section 179 expense.Cash contributions (60%) / (30%)
UltraTax CS automatically transfers amounts from the federal K screen to these statements. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.
Noncash contributions (50%) / … / Capital gain property (20%)
UltraTax CS automatically transfers amounts from the federal K-2 screen and the totals from federal Form 8283 to these statements. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.
Portfolio deductions subject to 2% floor / Other portfolio deductions
UltraTax CS automatically transfers amounts from the federal K-2 screen to this statement. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.
UltraTax CS adds the items entered in the statement to the following items.
- Guaranteed payments related to portfolio deductions
- Hawaii depreciation and amortization amounts related to portfolio deductions
Health insurance considered guaranteed payments (subject to 2% floor)
UltraTax CS automatically transfers the amount of health insurance considered guaranteed payments to partners entered in the federal K-2 screen to Schedule K. To modify the federal amount for Hawaii purposes, enter the revised number.
Pensions and IRAs considered guaranteed payments (subject to 2% floor)
UltraTax CS automatically transfers the amount of pension and IRAs entered in the federal K-2 screen to Schedule K, line 15 and in the total guaranteed payments. To modify the federal amount for Hawaii purposes, enter the revised number.
Other guaranteed payments (subject to 2% floor)
If the amount entered in the federal K screen for federal guaranteed payments related to portfolio income is different for Hawaii purposes, enter the Hawaii amount here. UltraTax CS includes this amount in the calculation of Form N-20, Schedule K, line 4, column b, and displays as guaranteed payments in the statement on Form N-20, Schedule K, line 14, column b at print time.
Other health insurance
UltraTax CS automatically transfers the amount of other health insurance entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Educational assistance benefits
UltraTax CS automatically transfers the amount of educational assistance benefits entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Dependent care benefits
UltraTax CS automatically transfers the amount of dependent care benefits entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Preproductive period expenses
UltraTax CS automatically transfers the amount of preproductive period expenses entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Commercial revitalization deduction from rental real estate activities
UltraTax CS automatically transfers the amount of commercial revitalization deduction entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Penalty on early withdrawal of savings
UltraTax CS automatically transfers the amount of penalty on early withdrawal of savings entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Other pensions and IRAs
UltraTax CS automatically transfers the amount of pension and IRAs entered in the federal K-2 screen to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Reforestation expense deduction
UltraTax CS automatically transfers the amount of reforestation expense deduction entered in the federal K-1 and K1-2 screens to Schedule K, line 15. To modify the federal amount for Hawaii purposes, enter the revised number.
Other deductions
UltraTax CS automatically transfers amounts from the federal K screen to this statement. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.
UltraTax CS adds the items entered in this statement with the following items to the statement for Form N-20, Schedule K, line 15, column b.
- Health insurance considered guaranteed payments to partners
- Educational assistance benefits
- Dependent care benefits
- Preproductive period expenses
- Commercial revitalization deduction from rental real estate activities
- Penalty on early withdrawal of savings
- Pensions and IRAs
- Other health insurance
- Form 4684, line 35
Attributable Everywhere
Ordinary income (Force) / … / Taxes, if specially allocated
Use these boxes to force the amount on N-20, Schedule K, Attributable Everywhere, for ordinary income, rental real estate, other rental net income, royalties, net sec 1231 gain (loss), specially allocated farm income, and specially allocated taxes.