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Screen SepK - Separately Stated Income and Expenses (1065)
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Overview
Use this screen to enter Schedule K items that should be separately stated by partner by activity, for the partner to complete their individual tax return. The total of amounts entered on this screen will be used to complete Schedules K and K-1. The specific amounts entered on this screen for each activity will be separately reported on the Partner’s Schedule K-1 Activity Worksheet.
note
Electronic Filing Note:
View the General and input screen-specific topics for electronic returns for data-entry guidelines to prevent electronic filing rejections.Income (Loss)
Use this section to enter Schedule K income (loss) items for each activity. Use the
K
screen to enter income (loss) items that don't need to be separately stated by partner by activity.4797 ordinary income
Select
Ptr Alloc
to allocate ordinary gains and losses for Form 4797. If specially allocated, the application moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).Total guaranteed payments other than health insurance, pensions, and IRAs
Use the
4835-2
, F-2
, Inc
, K-2
, OGWell
, and Rent
screens to enter the deductible guaranteed payments for each activity. The application allocates the guaranteed payments to the partners based on the profit-sharing percentage. Select Ptr Alloc
for each activity to allocate deductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.Health insurance and pensions and IRAs considered guaranteed payments to partners aren't included in this partner allocation. To allocate these payments using ratios other than the profit-sharing percentage, use the respective
Ptr Alloc
.The application defaults the combined guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in the
4835-2
, F-2
, Inc
, K-2
, OGWell
, and Rent
screens; and the nondeductible guaranteed payments you enter in this screen as Schedule K, Guaranteed payments: Services. Use Guaranteed payments for other than services, such as use of capital
to indicate the portion of entered deductible guaranteed payments that should be reported as Schedule K, Guaranteed payments: Capital.Guaranteed payments for other than services, such as use of capital
Enter the portion of guaranteed payments other than services, such as use of capital for this activity included in the
Total guaranteed payments
fields entered on the 4835-2
, F-2
, Inc
, K-2
, and Rent
screens. The application allocates the amount to the partners based on the profit-sharing percentage. Select Ptr Alloc
to allocate this amount to the partners using ratios other than the profit-sharing percentage.Guaranteed payments - nondeductible
Enter the nondeductible portion of guaranteed payments for each activity. The application allocates the amount to the partners based on the profit-sharing percentage. Select
Ptr Alloc
to allocate nondeductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.The application combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in the
4835-2
, F-2
, Inc
, K-2
, and Rent
screens; and the nondeductible guaranteed payments you enter in this field to calculate the total guaranteed payments for Schedule K, Guaranteed payments.Unrecaptured section 1250 gain (Force)
The application automatically calculates unrecaptured section 1250 gain for each activity from the entries you make in the
8824
, InstPY
, and Sale
screens. Enter an amount, including 0
(zero), to override the automatic calculation. The application includes the total unrecaptured section 1250 gain from all activities with Unrecaptured section 1250 gain from Form 1099-DIV
in the K
screen and Unrecaptured section 1250 gain from sale or exchange of partnership interest
in the D
screen for the printed statement on Schedule K, Unrecaptured section 1250 gain.Section 1231 gain (loss)
The application automatically calculates the section 1231 gain (loss) from the sale of business property for each activity. Select
Ptr Alloc
for each activity to allocate section 1231 gain (loss) to the partners using ratios other than the profit-sharing percentage.Section 743(b) positive adjustments (Force)
Use this field to override the calculation of Section 743(b) positive adjustments for this activity.
UltraTax CS automatically calculates Section 743(b) amounts based on assets, marked as Section 743(b) adjustment on the
Other
tab, while editing the asset. To include those assets on partner K-1's, specially allocate the depreciation for the Section 743(b) assets.Deductions
Use this section to enter Schedule K deductions for each activity. Use the
K-2
screen to enter deductions that don't need to be separately stated by partner by activity.Section 179 expense (Force)
The application automatically calculates the section 179 expense for each activity based on data entry in the asset module or in the
4562
screen. To force the application to use a specific section 179 expense amount, enter the amount, including 0
(zero), in these fields.note
Use the
OthAsset
screen in the General folder to use an amount different than the amount the application calculates for the total cost of section 179 property placed in service this year, the maximum dollar limit, and the business income limitation on Form 4562.Health insurance considered guaranteed payments to partners
Use the
4835-2
, F-2
, Inc
, K-2
, and Rent
screens to enter health insurance considered guaranteed payments to partners for each activity. The application allocates the health insurance considered guaranteed payments to the partners based on the profit-sharing percentage. Select Ptr Alloc
for each activity to allocate health insurance considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.The application combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in the
4835-2
, F-2
, Inc
, K-2
, OGWell
, and Rent
screens; and the nondeductible guaranteed payments you enter in this screen to calculate the total guaranteed payments for Schedule K, Guaranteed payments.Deductions – royalty income
Use the
Rent
screen to enter royalty deductions. The application allocates the net deductible royalty deductions reported on Schedule K, Other deductions to the partners based on the profit-sharing percentage. Select Ptr Alloc
to allocate Schedule K royalty deductions to the partners using ratios other than the profit-sharing percentage.You can only apply this field to the
SepK
screens in the Rent & Royalty folder.Preproductive period expenses (Force)
The application transfers the amount of productive period expenses entered on the
4835-2
and F-2
screens to Schedule K, Other deductions. Enter an amount, including 0 (zero), to override the amount for this activity that transfers to Schedule K. Select Ptr Alloc
to allocate Schedule K preproductive period expenses to the partners using ratios other than the profit-sharing percentage.You can only apply this field to the
SepK
screens in the Farm and Farm Rental folders.Pensions and IRAs considered guaranteed payments to partners
Use the
4835-2
, F-2
, Inc
, K-2
, and Rent
screens to enter pensions and IRAs considered guaranteed payments to partners for each activity. The application allocates the pension and IRAs considered guaranteed payments to the partners based on the profit-sharing percentage. Select Ptr Alloc
for each activity to allocate pensions and IRAs considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.The application combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in the
4835-2
, F-2
, Inc
, K-2
, and Rent
screens; and the nondeductible guaranteed payments you enter in this screen to calculate the total guaranteed payments for Schedule K, Guaranteed payments.Section 743(b) negative adjustments (Force)
Use this field to override the calculation of Section 743(b) negative adjustments for this activity.
UltraTax CS automatically calculates Section 743(b) amounts based on assets, marked as Section 743(b) adjustment on the
Other
tab, while editing the asset. To include those assets on partner K-1's, specially allocate the depreciation for the Section 743(b) assets.Self-Employment
Use this section to enter information for the Schedule K, Self-Employment section. The application calculates each partner's net earnings (loss) from self-employment and generates worksheets for the partnership and each partner.
Net earnings (loss) from self-employment (Force)
The application calculates net earnings (loss) from self-employment on the Partnership Self-Employment Worksheet. Enter an amount, including
0
(zero), to override the calculated amount. The application transfers the amount to Schedule K, Net earnings (loss) from self-employment.note
- Net earnings (loss) from self-employment are calculated based on the type of partner. Select the following partner types in thePartnertab in thePartner Informationwindow inPartner Data Entry.
- General Partner and LLC Member (SE Income) - calculate net earnings (loss) from self-employment for all items
- Limited Partner and LLC Member (SE on services) - calculate net earnings (loss) from self-employment only on guaranteed payments for services
- LLC Member (No SE) - doesn't calculate net earnings (loss) from self-employment
- If you enter data in this field, you'll need to allocate the amount to the partners. To do so, selectPtr Alloc. Conversely, if you selectPtr Allocto allocate an amount to partners, you'll need to enter an amount in theForcefield.
Gross nonfarm income (Force)
The application uses Form 1065, Page 1, line 3 - Gross profit plus Form 1065, Page 1, line 7 - Other income (loss) to calculate Schedule K, line 14c - Gross nonfarm income. Individual partners may need this amount to figure net earnings from self-employment under the nonfarm optional method in Section B, Part II of Schedule SE (Form 1040). Enter an amount, including 0 (zero), to override the gross nonfarm income that the application calculates.
note
- The application allocates the amount entered to all partners based on their profit percentage. SelectPtr Allocto allocate this amount to the partners.
- By default, the application calculates gross nonfarm income on Schedules K and K-1 only for partners subject to self-employment. To calculate this amount for all partners, markCalculate gross farm and nonfarm income for all partnerson theK-3screen.
Guaranteed payments to limited partners for services
Enter the amount of guaranteed payments to limited partners for services. You'll need to include these amounts in the
Guaranteed payments
fields in the 4835-2
, F-2
, Inc
, K-2
, and Rent
screens.note
The application allocates the amount entered to all partners based on their profit percentage. Select
Ptr Alloc
to allocate this amount to the partners.Alternative Minimum Tax (AMT) Items
In addition to the fields in this section, the application automatically calculates and transfers the following items to the Schedule K, Alternative Minimum Tax (AMT) Items section. Use the
K1-5
screen to enter information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.- Depreciation adjustment on property placed in service after 1986 from specially allocated assets
- Gross income from oil, gas, and geothermal properties related to ordinary income from the Oil & Gas module
- AMT deductions allocable to oil, gas, and geothermal properties related to ordinary income from the Oil & Gas module
Use this section to enter adjustments, tax preferences, and gross income and deductions from oil, gas, and geothermal properties for each activity.
Post-1986 depreciation adjustment
The application automatically transfers the depreciation adjustment on MACRS property placed in service after 1986 for this activity from the asset module, excluding specially allocated amounts. If you didn't enter assets in the asset module, enter the amount in this field.
note
The application transfers only the depreciation adjustment for assets that have a MACRS method selected in
Method
(Tax column) in the asset module.Adjusted gain or loss
The application automatically transfers the adjusted gain or loss for this activity from the asset module. The application calculates the adjusted gain or loss as the gain (loss) for the AMT treatment less the gain (loss) for the Tax treatment. If you didn't enter assets in the asset module, enter the amount in this field.
note
The application transfers only the adjusted gain or loss for assets that have a MACRS method selected in
Method
(Tax column) in the asset module.Gross income from oil, gas, and geothermal properties (Force) / Deductions allocable to oil, gas, and geothermal properties (Force)
The gross income from and alternative minimum tax deductions allocable to oil and gas wells associated with Form 1065, Page 1 automatically transfer from the Oil & Gas module to Schedule K. If you're not licensed for this module, enter the amount in these fields.
Partner Share of Liabilities
Nonrecourse - at risk (Force) / ... / Recourse - not at risk (Force)
The application automatically calculates the partners' share of liabilities by activity for Schedule K-1, Item K and for the Partner's Basis Worksheet, Increase (decrease) in share of liabilities based on data entry in the
L
screen and in the K1
screen. Enter an amount, including 0
(zero), in any of these fields to use an amount different from the calculated amount. The application automatically combines the at-risk and not at-risk nonrecourse, qualified nonrecourse, and recourse liabilities from the L
and K1
screens and prints each partner's share on Schedule K-1 and the Partner Basis Worksheet.The application allocates qualified nonrecourse and recourse liabilities according to the loss percentages. Select
Ptr Alloc
in this section to allocate the liabilities to partners using ratios other than the loss percentages.The application allocates nonrecourse liabilities according to profit percentages. To allocate liabilities based on the method required under Regulations sections 1.752-0 - 1.752-4, select
Ptr Alloc
.If any not at-risk amounts are allocated to a partner, the application generates a detailed schedule in Schedule K-1, Other information showing the at-risk, and not at-risk portions of all three liabilities.