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Screen Basis - Partner Basis (1065)
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General Information
Suppress calculation of partner basis worksheets
Enter
X
to suppress the calculation of partner basis for all partners, which will also prevent any basis information from being proforma'd to next year's version.note
- To suppress the calculation of partner basis worksheets for all new clients, mark theSuppress calculation of partner basis worksheets (Screen Basis)checkbox in the Other tab in the New Client Options dialog. To open this dialog, choose Setup and then 1065 Partnership and select the New Client Options button.
- To suppress the printing of the partner basis worksheet for a specific partner, mark theSuppress printing of basis worksheetfield in the Federal tab in the Partner Information window in Partner Data Entry.
Suppress K1 supplemental detail of distributions in excess of basis
The application follows IRC section 705, which states that a partner's basis cannot decrease below zero. When distributions or changes in a partner's liabilities would decrease the basis below zero, a deemed distribution must be made to restore the basis to zero. The application automatically calculates and reports this adjustment on the Partner Basis Worksheet, Distribution in excess of partner basis line and on Schedule K-1, box 20, Other information. Enter
X
to suppress the Schedule K-1 supplemental detail for distributions in excess of basis.To suppress the Schedule K-1 supplemental detail for all new clients, mark the
Suppress Schedule K-1 distribution in excess of basis supplemental information (Screen Basis)
in the Return Presentation tab in the New Client Options dialog. To open this dialog, choose Setup, 1065 Partnership, and then Federal tab, and select the New Client Options button.Suppress data share of partner basis information
Enter
X
to suppress the data share of partner basis information to UltraTax/1040.To suppress the data share of partner basis information for all new clients, mark the
Suppress data share of partner basis information (Screen Basis)
checkbox in the Other tab in the New Client Options dialog. To open this dialog, choose Setup and then 1065 Partnership, and select the New Client Options button.Data share beginning of year basis and prior year suspended losses
By default, beginning-of-year basis and prior-year suspended losses do not data share to UltraTax/1040. The application assumes you are already tracking this information in the 1040 client. Enter
X
to data share beginning of year basis and prior-year suspended losses.To data share beginning of year basis and prior-year suspended losses for all new clients, mark the
Data share beginning of year basis and prior year suspended losses (Screen Basis)
checkbox in the Other tab in the New Client Options dialog. To open this dialog, choose Setup and then 1065 Partnership, and select the New Client Options button.Increases and Decreases
Capital contributions - property (Force)
UltraTax CS calculates the amount of the partner's contributed capital using data entered in the
Capital contributions: Property
field in Screen M1M2 and data entered in the Transfers of Capital window in Partner Data Entry if the capital account adjustment is Property contributions
. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.Other increases / decreases
Use the statements to enter the description and amount for items that increase or decrease partner basis.
note
- Generally, the application limits the amount of available basis before losses and decreases in liabilities. When distributions or changes in liabilities would decrease the basis below zero, the application automatically calculates a deemed distribution under IRC section 705 and reports the adjustment on the Partner Basis Worksheet, Distribution in excess of partner basis line and on Schedule K-1, Other information.
- The application does not limit the amount entered in theOther decreasesfield by the available basis. Therefore, the amounts entered in this statement may cause a partner’s basis to be reduced below zero. To avoid this, enter the limited amount in the statement.
Distributions - property (Force)
The application calculates the amount of the partner’s property distributions using data entered in the
Distributions subject to section 737
field and the Other property distributions
field in Screen M1M2 and in the Transfers of Capital window in Partner Data Entry if the capital account adjustment is Property distributions
. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.Share of partnership liabilities (Force)
To determine the liabilities used in the calculation of the increase (decrease) in the partner's share of liabilities, the application uses the liabilities reported on Schedule K-1, Item K, Partner's share of liabilities at year end. The prior-year value is proforma'd from [[ut_py_yyyy]] the application. Enter an amount, including 0 (zero), in any of these fields to force the prior-year or current-year partnership liabilities. The application calculates the increase (decrease) in a partner's share of liabilities by subtracting the prior-year value from the current-year value of a partner's share of all nonrecourse, qualified nonrecourse, and recourse liabilities.
note
- The prior-year value of partnership liabilities cannot be determined for new or converted clients. Use the prior-year fields to enter the prior-year liabilities from last year's Schedule K-1, Item K.
- The application allocates qualified nonrecourse and recourse liabilities according to the loss percentages. Select the Ptr Alloc buttons to allocate the liabilities to partners using ratios other than the loss percentages. For more information on using the Ptr Alloc buttons, see Partner Data Entry and then Special Allocation of dialog.
- The application allocates the nonrecourse liabilities according to the profit percentages. To allocate liabilities based on the method required under Regulations section 1.752-0 - 1.752-4, select the Ptr Alloc buttons.
Outside basis depreciation adjustment (Force)
The application calculates the outside basis depreciation adjustment included in other deductions using assets entered in the asset module when the
Tracking partner's outside basis (1065 only)
checkbox in the Other tab is marked and the asset has been specially allocated to partners. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.Suspended Losses
Enter the prior-year suspended loss for each item. The application proformas this information based on information on the prior year’s Partner Basis Worksheet, Page 2. To determine the current-year allowable losses and deductions, the application combines the prior-year suspended losses with the current-year losses and deductions from the return then compares that amount to the partner’s available basis. Available basis is applied first to nondeductible noncapital expenses. Any remaining basis is then applied to all other losses and deductions. The amount of allowed loss is calculated by multiplying the available basis by a fraction, where the numerator is equal to the total loss amount (current year plus suspended amount) for a deductible item and the denominator is the sum of the total loss amount for all deductible loss items.