Allocation of Expenses by Income Type—Tax Basis worksheet
The Allocation of Expenses by Income Type — Tax basis worksheet is 1 of 4 worksheets that show how expenses are calculated. These worksheets are available in the
Expenses
folder in Forms view.To view this worksheet, right-click and select
Switch to Form
, then select the Expenses
folder.note
The other 3 worksheets are:
- Allocation of Expenses by Income Type—Accounting Income Basis.
- Partnership/S Corporation Worksheet
- Allocation of Deductions for Tax-Exempt Income
- Net income amounts calculated on a tax basis are used to determine the character of income reported to the beneficiaries on Schedule K-1.
- The expenses are allocated to the available income categories using the gross method. Mark theUse net rather than gross method for allocating expensescheckbox on theAllocatescreen in theAllocationsfolder to change the default.
- You can exclude any income category (except tax-exempt) from the allocation of indirect expense. Mark the category checkboxes in the Exclude Indirect Expense section on theAllocatescreen in theAllocationsfolder. If an income category is excluded, it's excluded for both the Tax Basis and Accounting Income Basis Worksheets.
- You can force any net income amount by using the Net Income by Type section on theAllocatescreen in theAllocationsfolder. If you force an amount, it's forced for both the Tax Basis and Accounting Income Basis Worksheets.
