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Federal input screens

Screen K1 - 1065/1041 (1120)

General Information

Enter
X
 to use this K1 unit as the main unit for combining K1 screens with the same EIN into one basis worksheet.
If you have two different income types on the same K1, enter them on separate sets of input screens. For example, if you have a K-1 with active ordinary income and one with a rental real estate loss, enter them on separate units of the K1 Screen.
Enter
X
 if the S Corporation qualifies for the section 1202 exclusion treatment for the section 1202 gain received from the pass-through entity. If this field is marked, and there are amounts entered in the
Section 1202 gain
 fields in the K-1 Screen, the application will transfer the section 1202 gains to Other Income on Schedules K and K-1. If this field is not marked, amounts entered in the
Section 1202 gain
 fields will transfer to Net long-term capital gain line on Schedules K and K-1.
Use this statement to enter required information for the following election statements.
  • Statement of Disproportionate Distributions From a Partnership Holding Code Sec. 751 Property (Regulation 1.751-1(b)(5))
  • Statement of Sale or Exchange of Interest in Partnership That Has Code Sec. 751 Property (Regulation 1.751-1(a)(3))
The application automatically prints the tax election(s) with the return.
Enter
1
 if the activity was completely disposed of in the current year. UltraTax/1120 will not proforma the activity to the next year's application. For C Corporations, prior-year passive suspended losses are released and the activity, plus any other related input screens, is deleted during next year's proforma process. Enter
2
 if the activity that was sold on an installment basis. UltraTax/1120 treats installment dispositions for a passive activity as follows:
  • UltraTax/1120 calculates any allowed losses for the current tax year by multiplying the overall loss by the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the tax year. Losses in excess of the allowed amount are suspended and proforma'd to the following tax year.
  • When the gain recognized in the current year exceeds all of the current and carryforward losses, all losses are allowed in the current year. Also, any other related input screens are deleted during next year's proforma process. Any activity that is coded 2 with no passive loss carryovers, plus any other related input screens, is deleted during next year's proforma process.
Enter
X
 in this field if the Schedule K-1 received from the pass-through entity was marked as a final K-1. UltraTax CS will not proforma the K1 unit to the following year.
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