Setting Up Your PAN

Granting User Rights

Can update assets INCLUDING fund factors
-Grant this user right to Trust Tax users who will enter or update factor information. When granted, users can update asset information for all asset types.
Can update assets EXCLUDING fund factors
-Grant this user right to Trust Tax users who will not enter or update factor information. When granted, users can update asset information other than factors for all assets types.

Select
SETUP
,
Users
then
Trust Tax Users
.
Select the
User ID
link for the Trust Tax user you want to grant user rights to.
In the
Rights
grid, review the check boxes for the
Can update assets INCLUDING fund factors
and
Can update assets EXCLUDING fund factors
user right. Select the applicable asset update check box if it is not selected.
Select
Save
.

Setting Options

Select

SETUP

,

Options&Overrides

then

PAN Level

or

SuperBank Level

.

Set the following options in the

Print

category:

Option	Description
Summarize Municipal Interest from mutual fund or factored transactions, except for Trust Situs and Beneficiary states	This option determines whether tax-exempt interest from municipal bond funds or factored transactions is summarized based on the account's situs state and recipient's resident state. When summarized, tax-exempt interest from states that are taxable to the situs state or resident state is shown as one amount on the detail pages. Income is summarized on the tax return detail pages and the tax worksheet. Select Yes to summarize tax-exempt interest. Select No to detail tax-exempt interest. note This option has a matching option in the Enhanced 1099 category.
Summarize Municipal Interest from Common Trust Funds, except for Trust Situs and Beneficiary states	This option determines whether municipal interest from common trust funds is summarized based on the account's situs state and the recipient's resident state. When summarized, municipal interest from states that are taxable to the situs state or resident state is shown as one amount on the detail pages and the tax worksheet. note This option has a matching option in the Enhanced 1099 category.
Summarize Foreign Income from mutual fund or factored transactions	This option determines whether foreign income from mutual funds or factored transactions is summarized on the Foreign Investments page. Select Yes to summarize foreign income. Select No to detail foreign income. note This option has matching option in the Enhanced 1099 category.

Set the following options in the

Compute-Federal

category:

Option	Description
Evaluation of mutual fund or factored transactions in the Qualified Dividend Income calculation	This option determines how the qualified dividend income calculation evaluates mutual fund transactions or transactions factored to tax codes 3, 5, 6, 201 or 202. The selections include: Perform all of the QDI calculations -Dividend income from an asset is treated as either qualified or nonqualified. The holding period test is performed. This test determines if the asset was sold within the holding period before or after the ex-dividend date. Bypass all QDI calculations -Dividend income is treated as based on the tax code it is factored to, even if the asset is marked as nonqualified. All QDI checks, including the holding period test, are bypassed. Bypass only the NQ asset flag check, still perform other QDI calculations -Dividend income is treated based on the tax code it is factored to, even if the asset is marked as nonqualified. The holding period test is performed. If the asset was sold and did not satisfy the holding period test, the income is reclassified as nonqualified dividends for that account. note This option has a matching option in the Enhanced 1099 category.
Presentation of short term capital gain dividends (tax code 126)	This option determines how short-term capital gain dividends posted or factored to tax code 126 (Short-Term Capital Gain Dividends) are presented for revocable and irrevocable accounts. The selections include: note Only short-term capital gain dividends posted to income are included in TAI. Show as nonqualified dividends on all accounts -Short-term capital gains dividends are presented as tax code 502 (Nonqualified Domestic Dividends). Show as qualified dividends on all accounts -Short-term capital gain dividends are presented as tax code 5 (Domestic Dividends). Show as nonqualified dividends on all revocable accnts and non-distributive, nonqualified dividends on irrevocable accnts -Short-term capital gain dividends are presented as Tax code 504 (Nonqualified Non-distributive Dividends) on Form 1041 for irrevocable accounts and tax code 502 (Nonqualified Domestic Dividends) for revocable accounts. Show as qualified dividends on all revocable accounts and non-distributive qualified dividends on irrevocable accounts -Short-term capital gain dividends are presented as tax code 201 (Non-distributive Dividends) on Form 1041 for irrevocable accounts and tax code 5 (Domestic Dividends) for revocable accounts. Show as nonqualified dividends on all revocable accounts only -Short-term capital gain dividends are presented as tax code 126 on Schedule D for irrevocable accounts and tax code 502 (Nonqualified Domestic Dividends) for revocable accounts. Show as qualified dividends on all revocable accounts only -Short-term capital gain dividends are presented as tax code 126 on Schedule D for irrevocable accounts and tax code 5 (Domestic Dividends) for revocable accounts.
Presentation of short term capital gain dividends (tax code 126) (Continued)	The IRS held that a distribution from a regulated investment company (RIC) of ordinary income that includes short-term capital gain dividends is includable in a trust's DNI regardless of whether the distribution is classified as principal for fiduciary purposes (See Ltr. Rul. 9811037). To follow the IRS' decision, do not set this option to Show as nonqualified dividends on all revocable accnts and non-distributive, nonqualified dividends on irrevocable accnts or Show as qualified dividends on all revocable accounts and non-distributive qualified dividends on irrevocable accounts . note This option has a matching option in the Enhanced 1099 category.

Set the following options in the

Compute-States

category:

Option

Description

Treat all out-of-state municipal income FACTORED transactions as tax-exempt

This option determines whether out-of-state municipal factored transactions are treated as tax-exempt. Indiana taxes out-of-state exempt (municipal) income for assets purchased after December 31, 2011. Indiana does not tax exempt income from Indiana, Washington D.C. or the U.S. territories. Washington, D.C. taxes all exempt (municipal) income from all states for assets purchased after December 31, 2012. Utah taxes exempt (municipal) income from non-reciprocity states for assets purchased after December 31, 2001. ONESOURCE Trust Tax automatically considers factored exempt (municipal) transactions (other than those from Utah or reciprocity states) as being taxable for Utah purposes. note This option has a matching option in the Enhanced 1099 category.

Set the following options in the

Capital Sales

category:

Option

Description

Calculate Return of Capital Cost Basis Adjustment

The default selection is Do not calculate return of capital basis adjustment from factors . Set this option to Calculate return of capital basis adjustment from factors to turn on the return of capital adjustment calculation. The calculation is made at the tax lot level for sales in the same tax year. The fund factor amount per share in tax code 4 (Nondividend distribution) is used to calculate the return of capital adjustment. note Only factors to tax code 4 are considered for the calculation. Nonfactored transactions in tax code 4 are ignored. A return of capital adjustment is calculated from the first day of the tax year or the acquisition date (whichever is later) through the sale's trade date based on the fund factor's ex-dividend date (if available). If the ex-dividend date is unavailable, the payment or record date is used. The units in each tax lot are multiplied by each tax code 4 factor within the date range. The following guidelines apply when the return of capital adjustment calculation is turned on: The calculation is triggered by a processing request (for example, a worksheet, projection or tax return processing request). The return of capital adjustment is not calculated if a tax lot is marked as Unknown Cost or Do Not Calc , has a missing acquisition date, or has no units. Wash sale identification occurs after the return of capital adjustment is calculated. For main and subaccounts, the calculation is made at the tax lot level in the individual subaccounts. The amount per share is applied to the units in the tax lot records for each sale. Since the free receipt date is not available for free receipt tax lots, a further review may be required to determine if the return of capital adjustment should be limited to a portion of the tax year. note This option has a matching option in the Enhanced 1099 category.

Set the following options in the

Enhanced 1099

category:

Option	Description
Summarize Municipal Interest from mutual fund or factored transactions, except for Trust Situs and recipient states	This option determines whether tax-exempt interest from municipal bond funds or factored transactions is summarized based on the account's situs state and recipient's resident state. When summarized, tax-exempt interest from states that are not the situs state or resident state is shown as one amount on the detail pages. Income is summarized on the tax return detail pages and the tax worksheet. Select Yes to summarize tax-exempt interest. Select No to detail tax-exempt interest. note Select No if you need to report out of state municipal interest (OSMI) for 1099 recipients who are residents of California, Connecticut, Massachusetts, Minnesota, Montana, North Carolina, New York and Rhode Island.
Summarize Municipal Interest from Common Trust Funds, except for Trust Situs and recipient states	This option determines whether municipal interest from common trust funds is summarized based on the account's situs state and the recipient's resident state. Municipal interest from all other states is shown as one amount on the detail pages. Select Yes to summarize municipal interest. Select No to detail municipal interest. note Select No if you need to report out of state municipal interest (OSMI) for 1099 recipients who are residents of California, Connecticut, Massachusetts, Minnesota, Montana, North Carolina, New York and Rhode Island.
Summarize Foreign Income from mutual fund or factored transactions	This option determines whether foreign income from mutual funds or factored transactions is summarized on the Foreign Investments page. Select Yes to summarize foreign income. Select No to detail foreign income.
Evaluation of mutual fund or factored transactions in the Qualified Dividend Income calculation	This option determines how the qualified dividend income calculation evaluates mutual fund transactions or transactions factored to tax codes 3, 5, 6, 201 or 202. The selections include: Perform all of the QDI calculations -Dividend income from an asset is treated as either qualified or nonqualified. The holding period test is performed. This test determines if the asset was sold within the holding period before or after the ex-dividend date. Bypass all QDI calculations -Dividend income is treated as based on the tax code it is factored to, even if the asset is marked as nonqualified. All QDI checks, including the holding period test, are bypassed. Bypass only the NQ asset flag check, still perform other QDI calculations -Dividend income is treated based on the tax code it is factored to, even if the asset is marked as nonqualified. The holding period test is performed. If the asset was sold and did not satisfy the holding period test, the income is reclassified as nonqualified dividends for that account.
Show short term capital gain dividends (tax code 126) as qualified dividends	Select Yes to consider short-term capital gain dividends posted or factored to tax code 126 as qualified dividends.
Calculate Return of Capital Cost Basis Adjustment	The default selection is Do not calculate return of capital basis adjustment from factors . Set this option to Calculate return of capital basis adjustment from factors to turn on the return of capital adjustment calculation. The calculation is made at the tax lot level for sales in the same tax year. The fund factor amount per share in tax code 4 (Nondividend distribution) is used to calculate the return of capital adjustment. note Only factors to tax code 4 are considered for the calculation. Nonfactored transactions in tax code 4 are ignored. A return of capital adjustment is calculated from the first day of the tax year or the acquisition date (whichever is later) through the sale's trade date based on the fund factor's ex-dividend date (if available). If the ex-dividend date is unavailable, the payment or record date is used. The units in each tax lot are multiplied by each tax code 4 factor within the date range. The following guidelines apply when the return of capital adjustment calculation is turned on: The calculation is triggered by a processing request (for example, a worksheet, projection or tax return processing request). The return of capital adjustment is not calculated if a tax lot is marked as Unknown Cost or Do Not Calc , has a missing acquisition date, or has no units. Wash sale identification occurs after the return of capital adjustment is calculated. For main and subaccounts, the calculation is made at the tax lot level in the individual subaccounts. The amount per share is applied to the units in the tax lot records for each sale. Since the free receipt date is not available for free receipt tax lots, a further review may be required to determine if the return of capital adjustment should be limited to a portion of the tax year.
Treat all out-of-state municipal income FACTORED transactions as tax-exempt (Applies to recipients in IN)	This option applies to Indiana recipients only. Select Yes to treat out-of-state municipal factored transactions as tax-exempt.

Set the following options in the

Vendor Info

category:

Option

Description

Do not copy mutual fund factors from the source account when copying trust data to a successor trustee or merging trust data

This option determines whether mutual fund factors are included or excluded when an account is copied or merged from one PAN to another. When this option is set to No (the default), mutual fund factors are included when an account is copied or merged from one PAN to another. When this option is set to Yes , all mutual fund factors are excluded when an account is copied or merged from one PAN to another.

Set the following options in the

Load

category:

Option	Description
Resident state of bank-used to assign location code on factor records when the transaction is a CTF and the asset does not have a location code	Select the resident state of your organization for this option. ONESOURCE Trust Tax uses the selected state to determine whether resident or nonresident municipal interest applies to a CTF factor when the asset is missing a location code (state of issue) in the monthly data load.

Set the following options in the

SmartBridge Probes

category:

Option	Description
Account contains CTF, Mutual or Factored funds that are out of balance	This SmartBridge probe generates a message when the total factored amounts and the total distribution amounts for an account's common trust funds (CTFs), mutual funds and other factored funds do not match. The selections include: Display message on worksheet -A message is added to the first page of the worksheet details. This is the default. Display message and do not process tax return -Tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message and do not process tax return projection -Projection processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message, do not process tax return and tax return projection -Projection or tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register.
Sales exist after Return of Capital	This SmartBridge probe identifies transactions posted or factored to tax code 4 (Return of Capital) with corresponding sales with trade dates greater than or equal to the ex-dividend date of the dividend transaction. If the ex-dividend date is blank, the tax effective date is used. The selections include: Do not check for error -No message is generated. This is the default. Display message on worksheet or with individual transaction or sale -A HIT message is added to the sale and the sale is displayed in bold on the Sales Detail page. On the worksheet, the HIT message is printed next to the sale and the sale is printed in bold. Display message and do not process tax return -Tax return processing stops, a HIT message is added to the sale and the sale is displayed in bold on the Sales Detail page. Display message and do not process tax return projection -Projection processing stops, a HIT message is added to the sale, and the sale is displayed in bold on the Sales Detail page. Display message, do not process tax return or tax return projection -Projection or tax return processing stops, a HIT message is added to the sale, and the sale is displayed in bold on the Sales Detail page.
Account contains transactions for asset marked "Held for Review"	This SmartBridge probe identifies accounts that contain one or more transactions for an asset that is marked as held for review. An account that has an asset marked as held for review cannot be processed until the hold is released. The selections include: Do not check for error -No message is generated. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet. Display message and do not process tax return -Tax return processing stops. Display message and do not process tax return projection -Projection processing stops. Display message, do not process tax return or tax return projection -Projection or tax return processing stops.
Account contains sales for asset marked "Held for Review"	This SmartBridge probe identifies accounts that contain one or more sales for an asset that is marked as held for review. The selections include: Do not check for error -No message is generated. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet. Display message and do not process tax return -Tax return processing stops. Display message and do not process tax return projection -Projection processing stops. Display message, do not process tax return or tax return projection -Projection or tax return processing stops.
Account contains tax-exempt transactions for asset with no state of issue	This SmartBridge probe identifies municipal and territorial asset transactions that do not have a valid origin code. The selections include: Do not check for error -No message is generated. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet. Display message and do not process tax return -Tax return processing stops. Display message and do not process tax return projection -Projection processing stops. Display message, do not process tax return or tax return projection -Projection or tax return processing stops.
Account contains foreign withholding transactions for asset, but missing foreign dividend or interest transactions	This SmartBridge probe identifies foreign withholding transactions (which are posted to tax code 29, 39, 299 or 499) that have no foreign dividend or foreign interest component. The selections include: Do not check for error -No message is generated. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet. Display message and do not process tax return -Tax return processing stops. Display message and do not process tax return projection -Projection processing stops. Display message, do not process tax return or tax return projection -Projection or tax return processing stops.
Sales with ROC match Free Receipt Transaction	This SmartBridge probe identifies sales with return of capital that also have free receipt transactions (tax code 951) within the tax year. The selections include: Do not check for error -No message is generated. This is the default. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet detail. Display message and do not process tax return -Tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message and do not process tax return projection -Projection processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message, do not process tax return or tax return projection -Projection or tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register.
Tax lot(s) exist with calculated ROC in excess of Cost Basis	This SmartBridge probe identifies sales where one or more tax lots have return of capital in excess of cost basis. The selections include: Do not check for error -No message is generated. This is the default. Display message on worksheet or with individual transaction or sale -A message is added to the first page of the worksheet detail. Display message and do not process tax return -Tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message and do not process tax return projection -Projection processing stops and a message with the Needs attention status is logged in the Currently Processing register. Display message, do not process tax return or tax return projection -Projection or tax return processing stops and a message with the Needs attention status is logged in the Currently Processing register.