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Screen Inc - Income and Deductions (1065)
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General Information
Use this section to enter general information for this unit of ordinary income and deductions.
Specially allocate
Select the Ptr Alloc button to specially allocate this activity to partners using ratios that are different from the profit-sharing percentages. You do not need to use this field unless the partnership has an allocation for this activity that differs from the profit-sharing percentages.
note
The Ptr Alloc does not include farm income or loss reported on Schedule F, 4797 ordinary income, or ordinary income or loss or guaranteed payments from Schedule K-1 passthrough entities. Use the SepK Screen to specially allocate 4797 ordinary income. Use the K1 Screen to specially allocate the amounts from passthrough entities.
Section 1.163(j)-9 election was made for excepted trade or business
Enter
X
if this activity is an excepted trade or business per page 2 of the Form 8990 instructions and should not be included
in the Form 8990 calculation. If this activity is not an exception to the section 163(j) limitation and therefore should be included in Form 8990 then leave this field blank.Income
Other income (loss)
Use the statement to enter other income items not entered elsewhere. The application adds the items entered in the statement to guaranteed payments for services from a passthrough Schedule K-1 in which the current partnership is a partner in the printed statement for Form 1065, Page 1.
Use the K1 Screen to enter guaranteed payments from a passthrough activity.
Deductions
Salaries and wages
Enter the amount of salaries and wages before any reductions for allowable credits. The application reduces the amount entered in this field by the amount of the allowable credits for Forms 5884, 8932, and 8994 based on entries in the Cr and Cr-5 Screens for the associating activity before transferring the net amount to Form 1065, Page 1.
Total guaranteed payments
Enter the amount of deductible guaranteed payments associated with this activity. Also include health insurance payments for partners and their families and payments for pensions and IRAs for partners. Specially allocate these amounts in the SepK Screen. Enter nondeductible guaranteed payments in the SepK Screen.
Lease inclusion (Force)
Use this field to override the lease inclusion calculated from the asset module for this unit. If the auto inclusion is zero, enter 0 (zero). The amount of rent expense that transfers to Form 1065, Page 1 will be reduced by the amount of lease inclusion calculated or entered in this field.
Taxes and licenses
Enter the amount of tax and licenses before the reduction for the credit for employer Social Security and Medicare taxes paid on certain employee tips. The application reduces the amount entered in this field by the amount of the allowable Form 8846 credit based on entry in the Cr-4 Screen for the associating activity before transferring the net amount to Form 1065, Page 1.
note
Select the Ptr Alloc button to specially allocate taxes and licenses. If specially allocated, the amount moves from Form 1065, Page 1 to Schedule K, Other income (loss).
Business interest expense subject to limitation
Enter the portion of interest expense, not including floor plan financing interest expense, that qualifies as business interest expense for Form 8990.
note
Enter Floor plan financing expenses on the 8990 screen, in the Schedule K folder.
Page 1 depreciation to Form 1125-A: Percentage
Enter a percentage (xxx.xxxxxx) to allocate a portion of the Page 1 depreciation to Form 1125-A for the associating activity. The application multiplies the amount in the
Depreciation - tax (Force)
field in this screen, or if that field is blank, the Form 1065, Page 1 depreciation from either the asset module or the 4562 Screen, by the percentage you enter in this field. The resulting amount prints in the statement for either Form 1125-A, Additional section 263A costs or Other costs depending on the code in the Type of cost - depreciation
field in the A Screen.note
The application ignores an entry in this field if you made an entry in the
Depreciation (Force)
field in the A Screen.Page 1 depreciation to Form 1125-A: Amount
Use this field to allocate a portion of the Form 1065, Page 1 depreciation to Form 1125-A. The amount you enter prints in the statement for either Form 1125-A, Additional section 263A costs or Other costs depending on the code in the
Type of cost - depreciation
field in the A Screen.note
The application ignores an entry in this field if you make an entry in the
Depreciation (Force)
field in the A Screen.Depletion, other than oil and gas
Enter the amount of depletion for Form 1065, Page 1. Do not include any oil and gas depletion.
note
Select the Ptr Alloc button to specially allocate depletion. If specially allocated, the amount moves from Form 1065, Page 1 to Schedule K, Other income (loss).
Employee benefit programs
Enter the amount of employee benefits before the reduction for the credit for small employer health insurance premiums. The application reduces the amount entered in this field by the amount of the allowable Form 8941 credit based on entry in the Cr-5 Screen for the associating activity before transferring the net amount to Form 1065, Page 1.
Other deductions
Use the statement to enter other deductions not entered elsewhere. The items entered in the statement add to the following adjustments in the printed statement for Form 1065, Page 1.
- Amortization (Inc Screen)
- Meals expenses (Inc Screen)
- Start-up expenses (asset module or 4562 Screen)
- Organization costs (asset module or 4562 Screen)
- Oil and gas deductions related to Page 1 income when not specially allocated (OGWell Screen)
- Form 6765, Credit for Increasing Research Activities (Cr-2 Screen)
- Form 8820, Orphan Drug Credit (Cr-2 Screen)
- Form 8826, Disabled Access Credit (Cr-2 Screen)
- Form 8881, Credit for Small Employer Pension Plan Startup Costs (Cr-5 Screen)
- Form 8882, Credit for Employer-Provided Childcare Facilities and Services (Cr-5 Screen)
Meals subject to 50% limit
Enter 100 percent of the meals expenses. The application automatically reduces this amount by 50 percent when calculating Form 1065, Page 1, Other deductions and generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.
note
- To allocate the nondeductible portion of meals to partners using ratios different from the profit-sharing percentages, select the Ptr Alloc button in theNondeductible mealsfield in the M1M2 Screen (for Schedule M-1 reconciling adjustments) or theMeals, Permanent Differencefield in the M3-3 Screen (for Schedule M-3 reconciling adjustments).
- Select the Ptr Alloc button to specially allocate the deductible portion of meals. If specially allocated, the deductible portion moves from Form 1065, Page 1 to Schedule K, Other income (loss).
- Enter entertainment expenses in theNondeductible entertainmentfield in the M1M2 Screen or theEntertainmentfield in the M3-3 Screen.
Meals subject to DOT 80% limit
Enter 100 percent of the meals expense for employees who are subject to the hours of service limitations of the Department of Transportation (DOT). The application automatically reduces this amount by 20 percent when calculating Form 1065, Page 1, Other deductions and generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.
note
- To allocate the nondeductible portion of meals to partners using ratios different from the profit-sharing percentages, select the Ptr Alloc button in theNondeductible mealsfield in the M1M2 Screen (for Schedule M-1 reconciling adjustments) or theMeals, Permanent Differencefield in the M3-3 Screen (for Schedule M-3 reconciling adjustments).
- Select the Ptr Alloc button to specially allocate the deductible portion of meals. If specially allocated, the deductible portion moves from Form 1065, Page 1 to Schedule K, Other income (loss).
- Enter entertainment expenses in theNondeductible entertainmentfield in the M1M2 Screen or theEntertainmentfield in the M3-3 Screen.