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Screen ORPAL - Oregon Instate and Passive Amounts (1040)
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Overview
UltraTax CS automatically calculates passive, at-risk and basis adjustments for all returns, and for part-year and nonresident returns including only Oregon source income. Calculated amount transfer to this screen and may be adjusted or suppressed as needed.
Suppress at-risk and basis worksheet calculations
UltraTax CS calculates at-risk and basis using Oregon income and expenses when federal Form 8582 would have been required had only Oregon income, expense, and adjustments been used to calculate the federal return. For Oregon part-year and nonresident taxpayers the calculation is completed using only Oregon source amounts. The federal return calculates using allocation data entered for Oregon basis, at-risk and passive activity carryover information entered for Oregon and MAGI purposes, and income amounts, regardless of basis, at-risk, or passive activity loss limitation impact. Selected amounts transferred to this screen result from that process. Enter
X
to suppress the calculation. Also, enter X
in the Suppress instate or PAL results below from appearing on Oregon Post Allocation (AGI) Worksheet
field if necessary.Freeze at-risk and basis worksheet calculation results
UltraTax CS calculates basis and at-risk amounts each time data transfers from the federal version of UltraTax CS. Enter
X
to suspend future calculation. Amounts on the Post Allocation Worksheet, Instate and/or PAL Calculated Amounts fields also freeze despite data entry changes on the federal screens.Suppress instate or PAL results below from appearing on Oregon Post Allocation (AGI) Worksheet
Enter
X
to use allocation amounts entered on Oregon screens. If X
is entered, UltraTax CS updates the basis and at-risk calculations with changed date from federal screens. However, the amounts generated from the calculation are not used to complete the Oregon Post Allocation Worksheet. UltraTax CS assumes that allocation data is entered in federal screens and calculates with federally entered allocation data.Business*
Oregon business income is a component of income that falls within passive activity loss limitation / instate calculations. For part-year and nonresident returns, non-Oregon business activities are removed and remaining units are used in a federal recalculation (unless a portion of the business activity is allocated to Oregon via the state allocation spreadsheet available in federal C Screen). If a business unit is subject to at-risk limitations, enter Oregon specific amounts in federal 6198 Screen or in the allocation spreadsheet related to 6198 Screen. If a business unit is further designated as passive in federal C-2 Screen, enter Oregon passive carryover amounts, if applicable, within the state allocation spreadsheet or on the related StCO Screen. If at-risk or passive activity carryover amounts calculate this year, the amounts will proforma to next year’s StCO Screen (passive carryovers) for the applicable business unit.
Specific information for columns follows:
- Considering Only OR Sourced Activities:The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments not denoted with an asterisk never have an amount assigned to the spouse.
Capital gain (loss)
Oregon capital gain (loss) is a component of income that falls within the at-risk, basis, and passive activity loss limitation / instate calculation. For part-year and nonresident returns, non-Oregon capital gains and losses are removed; remaining gains and losses are used in a federal recalculation. Short and long-term capital loss carryover amounts in federal CO Screen are disregarded. Enter an adjustment in this field to include these amounts. If passive activity carryover amounts calculate this year, the amounts will proforma to next year’s StCO Screen and/or K1-St Screen for the applicable federal unit.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary. An adjustment may be needed if a short or long-term capital loss carryover is sourced to Oregon.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments not denoted with an asterisk never have an amount assigned to the spouse.
Other gain (loss)
Oregon other gain (loss) is a component of income that falls within the at-risk, basis, and passive activity loss limitation / instate calculation. For part-year and nonresident returns, non-Oregon other gains and losses are removed and remaining gains and losses are used in a federal recalculation. If passive activity carryover amounts calculate this year, the amounts will proforma to next year’s StCO Screen and/or K1-St Screen for the applicable federal unit. If the taxpayer becomes a resident of Oregon in the future, resident returns do not make provisions for passive activity carryovers that differ from federal carryover amounts.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field; therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary. An adjustment may be needed if a Section 1231 Nonrecaptured Loss carryover is sourced to Oregon, for example.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments, not denoted with an asterisk, never have an amount assigned to the spouse.
Rents*
Oregon rent income (all federal Schedule E related income) is a component of income that falls within the passive activity loss limitation / instate calculation. For part-year and nonresident returns, non-Oregon rent, farm rent, K1 and K1-T activities are removed and remaining units are used in a federal recalculation (unless a portion of the rental activity is allocated to Oregon via the state allocation spreadsheet available in federal Rent, 4835 , K1, and/or K1-T Screens). If a rental unit is further designated (or defaults to) as passive at the federal level, enter Oregon passive carryover amounts, if applicable, within the state allocation spreadsheet or on the related StCO Screen or K1-St Screen. If passive activity carryover amounts calculate this year, the amounts will proforma to next year’s federal StCO and/or K1-St Screens for the applicable federal unit.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments, not denoted with an asterisk never have an amount assigned to the spouse.
Example:
Rental loss federal carryover due to MAGI, partially allowed for Oregon part-year resident- Federal wages = 238,000 (138,000 OR W-2; 100,000 Non-OR W-2)
- Rental #1 = Loss 25,000 (sourced to Oregon)
- Rental #2 = Income 10,000 (sourced to Oregon)
- Federal rental income / loss = 0; suspended loss 15,000, unit 1
Recalculated rental income / loss Oregon = -6000; suspended loss 9000, unit 1.
Example:
Rental loss permitted federal return, partially suspended for Oregon nonresident- Federal wages = 100,000 (sourced to Oregon)
- Rental #1 = Loss 30,000 (sourced to Oregon)
- Rental #2 = Income 40,000 (sourced to a state other than Oregon)
- Federal rental income/loss = 10,000; suspended loss 0; exception met.
Recalculated rental income/loss Oregon = -25,000; suspended loss 5000, unit 1.
Farm*
Oregon farm income is a component of income that falls within the passive activity loss limitation / instate calculation. For part-year and nonresident returns, non-Oregon farm activities are removed and remaining units are used in a federal recalculation (unless a portion of the farm activity is allocated to Oregon via the state allocation spreadsheet available in federal F Screen). If a farm unit is designated as passive in federal F-2 Screen, enter Oregon passive carryover amounts, if applicable, within the state allocation spreadsheet or on the related StCO Screen. If passive activity carryover amounts calculate this year, the amounts will proforma to next year’s StCO Screen for the applicable farm unit.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments, not denoted with an asterisk, never have an amount assigned to the spouse.
Other income
Oregon other income is a component of income that falls within the passive activity loss limitation / instate calculation. For part-year and nonresident returns, non-Oregon other income amounts are removed and remaining other income amounts are used in a federal recalculation. If passive activity carryover amounts calculate this year, the amounts will proforma to next year’s K1-St Screen for the applicable federal unit.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer/Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. Income and adjustments denoted with an asterisk are force fields for the spouse. Income and adjustments, not denoted with an asterisk, never have an amount assigned to the spouse.
Self-employment tax*
The self-employed tax adjustment to income is recalculated based in part on the income amounts that appear in the
Income
fields in this screen.Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field, therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer / Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required), enter an amount in the field provided in theSpousecolumn. This amount is a force field for the spouse.
SEP or qualified plan / Self-employed health / IRA deduction
SEP (or other qualified plan), self-employed health and IRA deductions are recalculated based in part on the income amounts included in income classified as self-employed net profit. The allocation for IRA deduction takes into consideration instate wages as they relate to worldwide wages combined with SE net profit.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated as SE net profit had all non-Oregon activities been removed from the return. This is a calculating field; therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer / Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required, enter an amount in the field provided in theSpousecolumn. All adjustment to income amounts are force fields for the spouse.
Penalty on early withdrawal
Penalty on early withdrawal can be limited or allowed by at-risk and basis calculations.
Specific information for columns follows:
- Considering Only OR Sourced Activities: The amount that appears in this column is what the federal return would have calculated had all non-Oregon activities been removed from the return. This is a calculating field; therefore data entry is not permitted.
- Adjustment: Enter an amount to adjust the calculated amount, if necessary.
- Portion of Total Sourced to Taxpayer / Spouse: The calculated taxpayer amount appears in theTaxpayercolumn. To adjust Taxpayer / Spouse amounts for joint returns (when taxpayer and spouse separate amounts are required, enter an amount in the field provided in theSpousecolumn. All adjustment to income amounts are force fields for the spouse.