2014 UltraTax CS includes several significant enhancements to Schedule K-1 data entry. The Schedule K-1 input screens and basis worksheets now provide you with more intuitive data entry and the ability to group passive and non-passive activities together. The K1 1065, 1120S folder now more closely resembles the order of an actual Schedule K-1 document. As such, the K1 input screens now range from K1 through K1-7.
Ability to Link and Identify Separate Activities Tied to the Same Partnership or S Corporation
UltraTax CS will now combine data into one set of partner or shareholder basis worksheets for all of the Schedule K-1 units of an entity that share the same EIN and TSJ (taxpayer, spouse, joint) code when filing MFJ.
The addition of the Name of Activity field on Screen K1-2 enables you to identify each unit of a multiple-activity partnership or S corporation, such as a partnership with both passive and non-passive activities. UltraTax/1040 uses the activity name on the K1 Reconciliation Worksheets and supporting statements to help you review data from various Schedule K-1 units with same EIN and entity name. The addition of an activity name enables preparers to keep track of the partner or shareholder basis per activity for allowed and disallowed losses.
Here are other enhancements to the Schedule K-1 data entry:
- Screen K1 provides data entry for the entity’s general and demographic information.
- Screen K1-2 provides data entry for the type of activity and income of the activity.
- Data entry for current credits received from partnerships and S corporations has been moved to Screen K1-4.
- Passive activity information and carryovers have been moved to Screen K1-7.
- The basis input screens have been renamed to Screens PBasis1, PBasis2, SBasis1 and SBasis2.
- Diagnostics have been enhanced to help identify activities that are part of a group and require more information.
For more information on this topic, refer to the following resources:
- Screen K1 – Schedule K-1, 1065 / 1120S – General Information
- Screen K1-2 – Schedule K-1, 1065 / 1120S – Current Income
- UltraTax CS User Bulletin 1040
Remember to press F1 on your keyboard from any input screen or dialog in UltraTax CS to open the corresponding screen’s help topic.