Prepare a final short-year return
Follow these steps to prepare a final, short-year
2026
Partnership return using UltraTax CS 2025
when starting with a previously prepared client. Note that the IRS will accept the return on 2025
forms.- Create a copy of the client:
- If the client is open, selectFile, thenSave As.
- If you previously e-filed the client, you may get aWarning - Status Systemwindow when opening the client.
noteIf you choose to open for editing, UltraTax CS will recalculate the return information. To avoid recalculating the return, selectReplicate with cleared status events. Don't mark theTreat replicated client as temporary; delete it upon closingcheckbox. - Change the year end on the 1065 screen in the General folder.
- On the 1065 screen, enter or update the tax period dates for theTax year beginning - short yearandTax year endingfields. If the return is calculating depreciation, enter the dates in thePrior year ends, if differentfields.
- In the detail of each asset, add the current depreciation and the prior depreciation displayed in thePrior Depreciationfield, and enter the total in thePrior Depreciationfield.
- Move the Balance Sheet End of Year amounts to theBeginning of Yearfields.
- Enter the ending capital into theCapital account - beginning of yearfield on the M1M2 screen in the Balance Sheet folder, and allocate the capital to the partners.
- Complete the return, removing any2025data that shouldn't exist.
- Since this is a final return, you may also want to zero all capital accounts. To zero all partners' ending capital, selectView, thenPartner Information. Then selectView,Transfers of Capital, and select the wand icon on the toolbar. Turn onZero all capital accountsand follow the steps in theTransfers of Capital Wizard.noteYou can electronically file the2026short-year return using UltraTax CS2025.
