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Form 5227
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This article applies to:

  • Product: ONESOURCE Trust Tax

The Balance Sheet and Expanded Balance Sheet Collapsible Sections

The
Balance Sheet
 and
Expanded Balance Sheet
 collapsible sections include the balance sheet items in Part IV on Form 5227. The
Expanded Balance Sheet
 collapsible section has additional balance sheet details, and is available for you to use only if the
5227 Balance Sheet-use expanded detail
 Print option on the Options and Overrides page is set to
Yes
.
note
Your TAV may transmit year-end balance sheet data. If so, you can use the
Balance Sheet
 or
Expanded Balance Sheet
 collapsible section (or the
5227 Balance Sheet
 register) to review the balance sheet data. If your TAV does not transmit year-end balance sheet data, you must manually enter the balance sheet data.
The sections in the balance sheet grids are controlled by whether the default or simplified method is used to report net investment income. When the default method is used, the grids separate the income items into excluded income and accumulated net investment income sections. When the simplified method is used, the grids under the
Balance Sheet
 and
Expanded Balance Sheet
 collapsible sections show only the
NET ASSETS
 section.
The first year you use ONESOURCE Trust Tax to process 5227 returns, you must enter the beginning book and ending book values. Each year thereafter, the ending book values from the prior year are used as the beginning book values for the subsequent tax year.

Indicating the Valuation Method for a CRUT

The required unitrust payment for a CRUT is based on the FMV of the trust's assets, determined each year. The valuation method is determined by the trust instrument, and may be any one date of the year or multiple dates throughout the year (referred to as the average valuation method). In ONESOURCE Trust Tax, you can indicate the valuation method using the
Balance Sheet
 or
Expanded Balance Sheet
 collapsible section of the Form 5227 page.
To indicate the valuation method for a CRUT:
  1. Open the account.
  2. Select the
    Form 5227
     subtopic.
  3. Open the
    Balance Sheet
     or
    Expanded Balance Sheet
     collapsible section.
  4. Complete one of the following:
    • If the valuation method is any one date of the year, enter the valuation date in the
      Fair Market valuation date
       field.
    • If the average valuation method is used, select the
      Average method used for fair market value
       check box.
  6. Select
    Save
    .

Entering an Override for a Prior Year Balance Sheet Adjustment Paid to a Recipient during the Current Tax Year

To enter an override for a prior year balance sheet adjustment paid to the recipient during the current tax year:
  1. Open the account.
  2. Select the
    Form 5227
     subtopic.
  3. Open the
    Balance Sheet
     collapsible section.
  4. Enter the override in the
    Amount of prior year beneficiary balance sheet adjustment paid during the current tax year
     field.
  5. Select
    Save
    .

Working with the Balance Sheet

The amounts reported in Part IV of Form 5227 are listed in the grid under the
Balance Sheet
 and
Expanded Balance Sheet
 collapsible sections. The
Expanded Balance Sheet
 collapsible section includes additional detail that the
Balance Sheet
 collapsible section does not.
If your TAV transmits year-end balance sheet data, you can review and, if necessary, override the data. If your TAV does not transmit year-end balance sheet data, you must manually enter it.
As shown in the following graphic, balance sheet grids include the
Beginning Book Value
,
Ending Book Value
,
Fair Market Value
 and
Detail
 columns:
The
Beginning Book Value
 and
Ending Book Value
 columns are used for all split-interest trust types. The
Fair Market Value
 column is mandatory for a CRUT and optional for a charitable lead unitrust (CLUT). The
Detail
 column includes links for some balance sheet items. Selecting a
Detail
 link allows you to review details, add and delete assets, and enter detail overrides.
To work with the balance sheet:
  1. Open the account.
  2. Select the
    Form 5227
     subtopic.
  3. Open the
    Balance Sheet
     or
    Expanded Balance Sheet
     collapsible section.
  4. Review the balance sheet data. Make any necessary changes or enter the appropriate amounts.
  5. Access the detail for a balance sheet item by selecting the
    Detail
     link in the
    Detail
     column. The Form 5227 Details page displays. The following graphic shows the detail for the
    Undistributed ordinary income- qualified dividends
     expanded balance sheet item. If you change the details for a balance sheet item, select
    Save
     in the upper left corner of the Form 5227 Details page. You can return to the Form 5227 page by selecting
    Close
    .
  6. Select
    Save
    .