Triva isn't available right now.
Check out the support page for our phone number and hours
Screen St CO - State Passive Carryovers (1040)
Show all hidden content
Overview
Use this screen to enter the percentage of federal net income or the amount of net income attributable to a specific state for Schedules C, E, and F and Form 4835 activities. This screen is also used to enter state-specific (Arkansas (Schedule C only), California, Connecticut, Hawaii, Kentucky, Massachusetts, Montana, New York, Oregon, and Wisconsin only) passive and section 179 carryover information (including Alabama and New Hampshire) for Schedules C, E, and F and Form 4835 activities. Information entered in this screen automatically transfers to the appropriate state for use in state specific calculations. For more information, access the input screen help for the appropriate state application by pressing F1 from within a state input screen.
note
- For all states, other than New Jersey (for resident income purposes), Michigan, Oklahoma, and South Carolina (for reporting out-of-state income), allocations applyonlyto part-year resident and nonresident processed states.
- Unlike income allocations, passive activity and section 179 carryover amounts apply to all residency statuses for AL, CA, HI, KY, MA, MT, NY, OR, and WI, and part-year resident and nonresident statuses for NY.
Use the State allocation spreadsheet for UltraTax/1040 multi-state processing for the St CO screen. Enter all multi-state data at the federal level via the State allocation spreadsheet for each unit of a single entity.
With the State allocation spreadsheet, multiple C, F, Rent, and 4835 screens will not be needed at the federal return level for a single entity to affect multiple-state processing. In addition, individual allocation percentages and allocated net income amounts, in total, are not required to foot with the federal amount, so individual state's law differences can be conveniently taken into consideration.
For more information, see Processing multiple-state returns.
State Activity - General Information
UltraTax CS transfers corresponding information entered in the C, F, 4835, or Rent screens for the
Form / Schedule
, Unit
, T, S, J
, Description
, State
, City code
, and City name
fields to this section automatically. These fields contain information about the business unit activity. This information is used to gather and coordinate information for the business unit activity. The table that follows lists the available forms and their applicable folder locations.Folder | Form description |
|---|---|
Business | Schedule C |
Rent & Royalty | Schedule E, Page 1 |
Farm | Schedule F |
Farm Rental | Form 4835 |
Percent of federal... / Amount of net income...
Use these fields to allocate the amount of federal net income from this specific activity to the specified state when processing a single state return. If multiple states are being processed with this client, or if a California part-year resident or nonresident return is being processed, enter either the percentage of federal net income
OR
the amount of the federal net income for this specific activity attributable to each state within the State allocation spreadsheet.note
- For California, Hawaii, and Wisconsin returns, if an allocation percentage is entered, the percentage should reflect the portion of net income from CA, HI, or WI sources before depreciation expenses and passive adjustments (not the amount that will show in the spreadsheet). The depreciation calculation and passive adjustment will be made in the state return.
- For all states, other than New Jersey (for resident income purposes), Michigan, Oklahoma, and South Carolina (for reporting out-of-state income), allocations applyonlyto part-year resident and nonresident processed states.
When these conditions have been met, access the spreadsheet by clicking the Allocation icon in this screen.
State Passive Activity and Other Information
Use this section to enter state passive activity information and other carryovers. Note that you can enter amounts for both regular and AMT calculations. If the
AMT
fields are blank, UltraTax CS assumes these amounts are zero.State allocation
To access the State allocation spreadsheet, the following conditions must be present in the current client.
- The client being processed must include at least one state return.
- You must be viewing Client Organizer Data Entry or Input Screen Data Entry.
- For the 4835 and F screens, data must exist in theDescriptionfield.
- For the C screen, data must exist inPrincipal businessfield.
- For the Rent screen, data must exist inProperty kind/locationfield.
When these conditions have been met, access the spreadsheet by clicking the Allocation icon in this screen.
Two methods (percentage or amount) of allocation can be used to allocate federal unit net income to the applicable states displayed in the State allocation spreadsheet.
note
Amount fields applicable to one state may not be applicable to another state. Those amount fields that do not apply to a particular state have been disabled (shaded). Amount fields that are not shaded are considered enabled for the applicable state.
- Percentage:Enter a percentage in XXX.XX format in the first field available in the State allocation spreadsheet. Select the state to which this percentage applies from the fieldview. Select the Apply button. UltraTax CS will automatically calculate the amounts attributable to that state and display the amounts in the spreadsheet. The percentage entered for that particular state will appear below the state name for easy reference. If enabled, individual item amounts can be changed (overwritten) on the spreadsheet from UltraTax CS-calculated amount.
- Amount:In cases where a percentage of the federal amounts do not apply, individual item amounts, if enabled, may be entered in the spreadsheet for the applicable state. Zero (0) is a valid entry and will prevent the state amount from defaulting to the federal calculated amount. If an individual item amount field is left blank, the federal amount, if present, will be used in the state's calculation.
Build-up states that report or otherwise calculate income from these Schedules C, E, and F and Form 4835 activities on an amount by amount basis may be allocated using a percentage only, while passive carryover amounts may be allocated by entering the state- specific carryover amounts within the State allocation spreadsheet.
Other states, which are typically AGI states that require net activity amounts only, may be allocated by percentage or by entering the net amount of activity income/(allowable loss) attributable to the specific state.
note
Passive activity carryover amounts are disabled for AGI states other than Arkansas (Schedule C only), Connecticut, Kentucky, Montana, New York, and Oregon. Unlike income allocations, passive activity and section 179 carryover amounts apply to all residency statuses for AL, CA, CT, HI, KY, MA, MT, OR, and WI, and part-year resident and nonresident statuses for NY.
The State allocation spreadsheet may be printed in a report format for future reference. Select the Print or Preview button in the lower portion of the spreadsheet. If licensed, you can also print to FileCabinet CS.
State passive activity carryovers
Enter last year's state specific (Alabama, California, Connecticut, Hawaii, Kentucky, Massachusetts, Montana, New York, Oregon, and Wisconsin only) regular and AMT passive-loss carryovers for this activity. In future years, this information will proforma automatically.
note
- UltraTax CS allows you to enter0(zero) in all of these fields.
- For California, Hawaii, and Wisconsin carryovers, enter the Total sources carryover amounts in the St CO screen using postal code CA, HI, or WI. Amount fields left blank will default to federal amounts. When processing a part-year resident or nonresident return, enter state source amounts that differ from Total source amounts in the State allocation spreadsheet. When the postal code on the main activity screen is CA, Hawaii, or Wisconsin, state source amounts that are blank will default to the state Total source amounts. For all postal codes other than CA, HI, and WI, state source amounts that are blank will default to zero.