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Screen K1-5 - Schedule K-1, 1065/1120S - AMT, Basis Items (1040)
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Adjusted gain or loss...
Enter the adjusted gain or loss amount as reported on Schedule K-1 for this entity. The amount is treated as an adjustment to Part I of Form 4797 - AMT version. If the K1 information shared isn't from a section 1231 gain difference, change the amount transferred and enter the amount applicable to the other type of gain adjustment fields below.
Unrecaptured section 1250 gain adjustment
Enter the alternative minimum tax adjusted amount to adjust the amount entered in this field on the K1 screen. The unrecaptured section 1250 gain reported on Schedule D - AMT version is calculated on the Schedule D Line 19 Refigured for AMT Worksheet using this field plus or minus the amounts from this field.
Depletion (other than oil and gas)
Enter the depletion (other than oil and gas) preference amount as reported on Schedule K-1 for this entity. The amount will adjust Schedule E, Page 2 or Schedule E, Page 1 when depletion is included on Page 1.
Oil, gas and geothermal properties - gross income
Enter the amount of gross income from oil and gas properties as reported on Schedule K-1 for this entity. Form 6251 uses this information with other information from Schedule K-1 to determine the intangible drilling cost adjustment. See the following
Excess intangible drilling cost
field for further information.Oil, gas and geothermal properties - deductions
Enter the deductions allocable to oil and gas properties as reported on Schedule K-1 for this entity. Form 6251 uses this information with other information from Schedule K-1 to determine the intangible drilling cost adjustment. See the following
Excess intangible drilling costs
field for further information.Excess intangible drilling costs
If you're using the UltraTax/Oil & Gas module, enter this information in the OGWell screen. If you're not using the UltraTax/Oil & Gas module, enter amounts here as follows.
If this field is blank, it defaults to 90% of the amount entered as Intangible drilling costs. Intangible drilling costs are treated as if they were amortized over 120 months for 12 months in the current year. You can enter a different amount here if necessary, or enter 0 when there are no excess intangible drilling costs.
The preference for intangible drilling costs is calculated as follows:
- Net income is calculated by adding the amounts in theGross income from oil and gas propertiesfields, less the amount in theDeductions allocable to oil and gas propertiesfield, less the amount in theSection 59(e)(2) expenditures: Intangible drilling costsfield on the K1-3 screen, plus the amount in theExcess Intangible drilling costsfield.
- The tax preference amount is calculated as the amount in theExcess Intangible drilling costsfield less 65% of net income calculated using the excess intangible drilling cost. Only tax preference amounts exceeding 40% of the sum of Form 6251, lines 1 through 3 (as if excess IDC was reported on Form 6251, line 2t) are reported on Form 6251. Refer to the Tax Subject Index for Form 6251 instructions and information regarding IDC tax preference amounts.
Circulation expenditures
In the statement, enter the following information on prior circulation expenditures elected to be treated as Section 59(e) expenditures.
- Total expenditure: Enter the total amount expensed for regular tax purposes. For AMT purposes, the amount expensed for regular tax was added to AMT income.
- Prior AMT expense: For AMT purposes, the expenditure is allowed ratably over three years. Enter the amount used to reduce AMT income in the prior years.
- Current AMT expense: Enter the current AMT expense allowed. Circulation expenditures for AMT tax purposes are deducted ratably over 3 years. Amounts entered here or on the statement face will reduce AMT income. If basis or at-risk aren't used, the amount entered will be a negative amount for purposes of Form 6251, line 2o - Circulation costs (difference between regular tax and AMT). When basis and at-risk are used, the amount will be an expense on the respective worksheets, and any difference would appear on Form 6251, line 2m or 2n.
- Remaining expense: Enter the remaining expense to be deducted in future years. Any expenditure not fully used for AMT will proforma.
Research & experimental
In the statement, enter the following information on prior research and experimental expenditures elected to be treated as Section 59(e) expenditures.
- Total expenditure: Enter the total amount expensed for regular tax purposes. For AMT purposes, the amount expensed for regular tax was added to AMT income.
- Prior AMT expense: For AMT purposes, the expenditure is allowed ratably over 10 years. Enter the amount used to reduce AMT income in the prior years.
- Current AMT expense: Enter the current AMT expense allowed. Research and experimental expenditures for AMT tax purposes are deducted ratably over 10 years. Amounts entered here or on the statement will reduce AMT income. If basis or at-risk aren't used, the amount entered will be a negative amount for purposes of Form 6251, line 2r - Research and experimental costs (difference between regular tax and AMT). When basis and at-risk are used, the amount will show as an expense on the respective worksheets, and any difference would appear on Form 6251, line 2m or 2n.
- Remaining expense: Enter the remaining expense to be deducted in future years. Any expenditure not fully used for AMT will proforma.
Mining exploration & develop
In the statement, enter the following information on prior mining exploration and development expenditures elected to be treated as Section 59(e) expenditures.
- Total expenditure: Enter the total amount expensed for regular tax purposes. For AMT purposes, the amount expensed for regular tax was added to AMT income.
- Prior AMT expense: For AMT purposes, the expenditure is allowed ratably over 10 years. Enter the amount used to reduce AMT income in the prior years.
- Current AMT expense: Enter the current AMT expense allowed. Mining exploration and development expenditures for AMT tax purposes are deducted ratably over 10 years. Amounts entered here or on the statement will reduce AMT income. If basis or at-risk aren't used, the amount entered will be a negative amount for purposes of Form 6251, line 2q - Mining costs (difference between regular tax and AMT). When basis and at-risk are used, the amount will be an expense on the respective worksheets, and any difference would appear on Form 6251, line 2m or 2n.
- Remaining expense: Enter the remaining expense to be deducted in future years. Any expenditure not fully used for AMT will proforma.
Nondeductible expenses
Enter nondeductible expenses as reported on Schedule K-1 for this entity. This amount reports on Form 6198, Part I as other deductions for activities that are subject to basis and at-risk limitations and is used in the allocation of the basis and at-risk amounts. See the SBasis1 screen help for election options.
Cash and marketable securities distributions
Enter the cash and marketable securities distributions as reported on the Schedule K-1 (1065). If the amount exceeds the calculated basis of the partnership interest immediately before the distribution, the excess will be calculated on the Partner's Basis Worksheet.
Property distributions
Enter property distributions other than dividends as reported on Schedule K-1 for this entity. This amount reports on the Basis Worksheets and Form 6198, Part II for the simplified calculation, or Part III for the detailed calculation as decreases in at-risk basis for activities that are subject to at-risk limitations.
Repayment of loans from shareholders
Enter the amount as reported on the Schedule K-1 (1120S). Payments made on a loan with reduced basis must be allocated partly to a return of basis in the loan and partly in receipt of income. The Shareholder Basis Worksheet, Page 1 uses this amount to calculate recognized gains on the repayment and to restore loan basis.