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Screen PAK1 - Pennsylvania Schedule K1, Partnership and S Corporation (1040)
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Overview
Use this screen to complete Form PA-40 Schedules A, B, D, and E. Amounts that appear in the PAK1 screen are automatically transferred from the federal K1 screen. It's important to report any state-related law differences and details in the PAK1 screen.
note
Add or delete units for this screen in the corresponding federal screen instead.
General Information
City / City name
If filing a Pennsylvania city return, enter the 3-digit Local city code, the 3-letter code for Pittsburgh (PGH) or the 3-letter code for Philadelphia (PHL). Schedule K-1 income and expenses transfer to that city's return. For more information on setting up 3-digit local city codes, see Political Subdivision (PSD) codes and taxing authority city code setup.
Local EIT returns
Only partnership income with passive activity codes
3
and 4
automatically transfer to the local return. S-Corporation income isn't taxable.Non Pennsylvania S corporation
Mark this field if the S Corporation isn't a Pennsylvania S Corporation. UltraTax CS doesn't include any items in income from this screen and won't print either an RK1 or NRK1. UltraTax CS includes in dividends, the amount from the
Dividend distributions
field in the PAK1-2 screen.If part-year resident, indicate which Pennsylvania Schedule K-1 to complete
For part-year residents returns, indicate which of the 2 schedules to print. The UltraTax CS default for part-year residents is to print Schedule PA RK-1.
Adjustments
Items in this section of the PAK1 screen are automatically transferred from federal data based on the income and expense entries from federal K1 - K1-3 screens. If there's ordinary income, adjustment amounts transfer to the Ordinary (Force) column. If there's rental income, adjustment amounts transfer to the Rental (Force) column. If there's capital gains income, adjustment amounts transfer to the Schedule D (Force) column.
note
This transfer occurs 1 time only for each K1 unit. Further modifications made to adjustments in the federal screen don't update the PA Adjustments section. This is to protect any modifications you may make to the Force columns, which may be done at any time.
Guaranteed payments / ... / Unreimbursed ptnr exp
Items in the Adjustments section are automatically transferred from federal data into the Data entered at Federal level column. To be applied correctly, the income and expense adjustment amounts entered in these fields must be categorized according to relevant income type. UltraTax CS automatically assigns them to an income type based on the income categories found on the K1 in the following order:
Ordinary
, Rental
, and Schedule D
. Any allocation to the Gambling column must be made manually. The first category that has income will get all the items in the adjustment section allocated to it. The amounts can be adjusted or split between income types if desired.The amount in the Data entered at Federal level column is there for informational purposes only. Numbers to the right of the Data entered at Federal level column calculate on Form PA-40. If the amount entered at the federal level isn't allocated 100% in the aggregate to 1 or all of the adjustment categories, a critical diagnostic will print indicating which adjustment item doesn't equal the federal data entry.
Home office expense
The federal home office deduction, when not calculated using the simplified method, is automatically transferred from federal data into the Data entered at Federal level column for the
Home office expense
field. To be applied correctly, the Home office expense
amount must be categorized according to relevant income type. UltraTax CS automatically assigns the home office deduction to an income type based on other entries on the K1. The amount can be adjusted or split between income types if desired. The amount in the Data entered at Federal level column is there for informational purposes only-numbers to the right of the Data entered at Federal level column calculate on Form PA-40.The federal home office deduction, when calculated using the simplified method, is calculated from the Pennsylvania Business Use of Your Home Worksheet and doesn't update the Data entered at Federal level column for
Home office expense
. UltraTax CS automatically assigns the home office deduction to an income type based on the income categories found on the K1 in the following order: Ordinary
, Rental
, and Schedule D
. Any allocation to the Gambling column must be made manually in the Adjustment section of the PAK-1 screen. The 1st category that has income will get the home office deduction allocated to it on the Schedule K-1 Summary Report. The amounts can be adjusted or split between income types if desired. Use these fields to force the deduction to a different income category.If the deduction is being forced to an income category different than the automatically assigned category and the forced amount isn't allocating 100%, a critical diagnostic will print indicating amount allocated doesn't equal the amount calculated.
Income
Interest income /... / Ordinary dividend income
State taxable and nontaxable amounts, including adjustments for income from U.S. obligations and municipal bonds, are calculated automatically from information entered in the statement windows attached to the
Interest
and Dividends
fields in the federal K1-2 screen. The state information entered at the federal level is transferred to statement windows attached to the PAK1 screen where the calculated state taxable and nontaxable amounts are shown. Force
(override) fields are available in the state statement windows to override the calculated amounts on an item-by-item basis for only part-year returns.The taxable interest is reported on Form PA-40 Schedule A when there are amounts for any of the lines 2 through 15 (not including subtotal lines 4 and 10) of PA Schedule A. Otherwise, the taxable interest is reported directly on Form PA-40. The taxable dividend is reported on Form PA-40 Schedule B when there are amounts for any of the lines 2 through 10 (not including subtotal line 6) of PA Schedule B. Otherwise, the taxable dividend is reported directly on Form PA-40.
Royalties
An amount entered in this field transfers to Form PA-40 Schedule E.
Net short-term capital gain (loss) / ... / Net Section 1231 net gain (loss)
Amounts entered in these fields are reported on Form PA-40 Schedule D.
Deductions
Section 179 expense deduction
An amount entered in this field is reported as an adjustment against ordinary income.