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Allocation and apportionment

Allocation and apportionment (A&A) options

You have various A&A options in
Organizer
,
Allocation and Apportionment
,
A&A Options
.
  • Weights - The default weights are listed for each state. Generally, the system computes the average by dividing the total of the weighted property, payroll, and sales factors by the weighted number of factors present. For example, if a company has no payroll within the state and has zero payroll everywhere, the system excludes the payroll factor and averages the 2 remaining factors. However, if the partnership has no payroll within the state but has payroll everywhere, the payroll factor's none and the system averages all 3 factors.
  • Nexus suppression Use these options to indicate if no nexus exists for a state or city. Use the feature if a company doesn't have a business presence in a state, but the state must be activated on the return so the company gets includes in a combined report.
  • Deactivate state A&A Use this option to indicate the states you want to suppress A&A. This prevents all A&A details from flowing to the state return.
  • Change state defaults The apportionment ratio for states and cities with no A&A activity defaults to 100%. This selection changes the default apportionment ratio to none and results in no apportionable income.
  • Partnership categories Select states and cities where you want information entered on the data entry screens for partnership business income (including partnership property, partnership payroll, and partnership sales) to flow to that state return.
  • Threshold variance This field allows you to enter a threshold variance for the apportionment variances on the A&A Factor Review Comparison report. If the variance is greater than the percentage entered in this field, the system generates an informational diagnostic.
  • Prior year amounts These fields inform your prior year apportionment and allocation factors. This information's used on a Prior Year / Current Year Comparison report you can print for review.
  • Optional method Various state specific options are listed in this section.
  • Miscellaneous itemsNon-standard apportionment data should be entered in this section.
  • Print options Choose from various A&A print options.

This article applies to:

  • Product: ONESOURCE Income Tax Express RS
  • Return type: 1065 Partnership
  • Subject: Allocation, Apportionment
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