Community property designation

You can split income by community property rules by going to
Utilities
,
Filing status Optimization
, then
Community Prop / Filing Status / Other
tab and mark the
Split income according to Community Property rules
checkbox.
You can specify whether an activity or a source document is community property or non-community property. These designations are available for units entered on the following screens:
Screen
Folder
Notes
W2
Income
W2G
Income
C
Business
Rent
Rent & Royalty
Rent & Royalty units indicated as community property will be allocated 50/50 to the taxpayer and the spouse when two separate clients are created via the Filing Status Optimization utility with the Split income according to Community Property rules option enabled.
F
Farm
4835
Farm Rental
K1
K1 1065, 1120S
K1T
K1 1041
If the taxpayer is married, files a separate federal return, and resides in one of the following community property states - AZ, CA, ID, LA, NM, NV, TX, WA, or WI (or for registered domestic partners, files a single or head of household federal return, and resides in CA, NV or WA) - use the
Community property designation
field to identify whether or not the income/loss is generated from community property. By default, the application treats a blank entry as community property and an entry of
N
as non-community property (i.e. separate property).
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