Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Allocation

Allocation of Deductions for Tax-exempt Income worksheet

The Allocation of Deductions for Tax-exempt Income worksheet is 1 of 4 worksheets that show how expenses are calculated. These worksheets are available in the
Expenses
 folder in Forms view.
To view this worksheet, right-click and select
Switch to Form
, then select the
Expenses
 folder.
  • The form instructions indicate that a reasonable portion of expenses can be allocated against tax-exempt income.
  • This worksheet shows the expenses entered for the return (direct and indirect) and the calculation of indirect expenses to tax-exempt income.
  • The Income column amounts are reported on the Allocation of Expenses by Income Type – Accounting Income Basis worksheet.
  • The total column amounts are reported on the Allocation of Expenses by Income Type – Tax Basis worksheet.
  • Capital gains are included in the allocation of expenses to the extent they're allocated to beneficiaries. Use
    Net capital gains for tax-exempt income allocation (Force)
     on the
    Allocate
     screen in the
    Allocations
     folder to include a different amount.
  • By default, tax expense isn't indirectly allocated to tax-exempt income. Use
    Allocate indirect tax expense to all income types
     on the
    Allocate
     screen in the
    Allocation
     folder to change the calculation.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close