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Allocation

Enter special allocations

UltraTax CS automatically assigns the profit-sharing percentage allocation to most amounts of a partnership. The loss sharing percentage allocation is used for qualified non-recourse liabilities and recourse liabilities. Use these procedures to specially allocate partnership amounts to the partners in a manner that differs from the default allocation method. When you specially allocate an amount, UltraTax CS allocates the amount to the partners according to the allocation scheme you define for that amount. The resulting allocated amounts transfer to the partners' Schedules K-1.
note
You can specially allocate depreciation for assets just like other amounts; however, you enter special allocations for assets in the asset module by selecting the
Asset
 tab in the Income & Deductions, Farm, Farm Rental, Schedule K, or Rent & Royalty folders and not according to the following procedures.
You can enter special allocations on a field-by-field basis using the Special Allocation of window accessible from the input screens, or you can enter all special allocations in the Allocations window in Partner Data Entry.

Enter special allocations for a field in the Special Allocation of window

  1. Enter the total amount to be allocated in the amount field of the partnership amount you want to allocate.
  2. Select
    Ptr Alloc
     to open the Special Allocation of window.
  3. In the Allocation scheme group box, mark the
    Specially allocate
     checkbox.
  4. Select the following options:
    • Select
      U.S.: <allocation name>
       to default a state allocation to a federal allocated amount.
    • Select
      Percentage
       to use a single percentage column.
    • Select
      Units
       to use a single unit column.
    • Select
      Absolute dollar
       to use a single absolute dollar column.
    • Select
      Loss
       to use the Loss column in Partner Data Entry.
    • Select
      Advanced
       to use multiple allocation scheme methods. Then, proceed to
      define the advanced allocation scheme
      .
      note
      The
      U.S.:
        option is only available on a state allocation that has the ability to default to a federally allocated amount.
  5. Enter each partner's allocated percentage, amount, or unit in the allocation grid.
    note
    You can enter a partial percentage or amount of the allocation then select
    Distribute
     to distribute the remaining percentage or amount equally or pro rata to selected partners.
    Distribute
     is available only if there's a percentage or amount that still needs to be distributed.
  6. Select
    OK
     to save the allocation information and to close the Special Allocation of window.
  7. Repeat steps 1–6 for each partnership amount you want to specially allocate to the partners.
note
  • To remove the special allocation for an amount, clear the
    Specially allocate
     checkbox.
  • To add a custom percentage or unit allocation, select
    Percentage
     or
    Units
     to select the allocation method, and enter the partner's allocation. Then, mark the
    Custom
     checkbox and enter the unique title.
  • To re-use a previously defined percentage or unit custom allocation, select
    Percentage
     or
    Units
     to select the allocation method. Then, mark the
    Custom
     checkbox, and select the previously defined custom allocation.

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