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Screen Rent - Rent and Royalty Property (1041)

General Information

Corpus

If all or part of the income or loss from this activity is allocated to corpus rather than to income, enter the percentage that is allocable to corpus.

State

Enter the state's postal code here. If you leave this field blank, the activity’s income is not state source.

Type

Choose the appropriate type code for the property.

Code	Description	Results
1	Single family residence	Schedule E, line 1a and line 2 are completed. UltraTax CS defaults to 1 = Single Family Residence if this field is blank.
2	Multi-family residence	Schedule E, line 1a and line 2 are completed.
3	Vacation/Short-term	Schedule E, line 1a is completed. Line 2a is completed from information on the Rent-2 screen.
4	Commercial	Schedule E, line 1a and line 2 are completed.
5	Land	Schedule E, line 1a and line 2 are completed. Property is subject to the net income recharacterization of passive income rules and all rental income is treated as nonpassive income (per IRS Pub 925). Income is also included in investment income on Form 4952, and in nonbusiness income on Form 1045 and the Net Operating Loss Worksheet.
6	Royalties	Schedule E, line 1a and line 2 are not completed. Property is not subject to passive activity rules. Income is included in investment income on Form 4952, and in nonbusiness income on Form 1045 and the Net Operating Loss Worksheet.
7	Self-rental	Schedule E, line 1a and line 2 are completed. Property is subject to the net income recharacterization of passive income rules and all rental income is treated as nonpassive income (per IRS Pub 925).
8	Other	Schedule E, line 1a and line 2 are completed.

Ownership percentage, if not 100

If the estate or trust doesn't own the entire property, enter the ownership percentage. This percentage is applied to the subtotal amounts to report on Schedule E, so enter total receipts and expenses for the property. If you enter assets for this activity, you should also enter them (including any sale information) at full value.

Disposition of activity

Enter 1
to delete this activity on next year's return. If this is a passive activity, it will also release all suspended losses.

Enter code 2
if this is a passive activity sold on installment. If there are passive loss carryovers, the activity will remain on next year's return and will allow losses based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year. If this activity doesn't have passive loss carryovers, only the Sale and/or InstPY screen for this activity will transfer to next year's return.

If this activity has assets you must move or transfer them to another activity before you proforma to the next year.

Income

Allocation

Select the Allocation button, or choose View then Allocation from the toolbar to open the multi-state allocation grid and allocate federal net income to states. If a field is grayed out for a certain state, it is not applicable in calculating in-state income for that state.

Rents and royalties

Enter gross rent and royalty income for this property. You can also enter rent and royalty income the 1099M screen in this folder. Amounts you enter here and the 1099M screen will combine to report total rent and royalty income on Schedule E.

Expenses

Depreciation (Force)

If you retrieve depreciation expense using tax code 520 or manually enter it in this field, this data is used rather than the amount calculated on Form 4562. The forced amount doesn’t allocate to the beneficiaries. Instead, the net gain or loss calculated for this activity includes the entire amount.

Depletion (Force)

Enter an amount if you want to override the calculated depletion from the Oil & Gas module, if applicable. If you're not using the Oil & Gas module, and are entering a working interest directly on this screen, enter the depletion in this field. Limitations or tax preferences do not calculate based on the data entry in this field. This amount may allocate to beneficiaries using percents you entered in the Depletion
field in Beneficiary Information, Federal, then Other Allocations. The remaining amount displays on Schedule E, line 18.

This article applies to:

Product: UltraTax CS
Return type: 1041 Fiduciary

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