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Allocation

Types of allocations

You can use 8 different types of allocation to allocate amounts to partners. You can use the different types of allocation types alone or in combination with the other methods in an advanced allocation scheme.
  • U.S.: <allocation name>
     - Use the U.S.: method to allocate a state allocation using the default federal allocation. This allocation type is selected automatically for a state allocation when the
    Default state partner special allocations to the corresponding federal special allocation
     field is  selected on the federal CltOptns screen.
    note
    This option is only available on a state allocation that has the ability to default to a federally allocated amount.
  • Percentage
     - Use the percentage allocation method, the most commonly used allocation type, to allocate an amount based on a fixed percentage that represents a partner's interest in the amount. If the last column of an advanced allocation is a percentage column, and a unit component isn't included in the allocation scheme, the column needs to always equal 100 percent to ensure that the full amount is distributed to partners. If the column doesn’t equal 100 percent, UltraTax CS issues an error message and requires that the column entries be corrected.
    note
    To save a defined percentage scheme as a custom allocation scheme for re-use on other allocations, mark the
    Custom
     checkbox, and enter a unique title.
  • Units
     - Use the units allocation method to allocate an amount based on a fixed unit that represents a partner's interest in the amount. UltraTax CS allocates the amount to the partner based on the partner's percentage share of the total units entered for all partners.
    note
    To save a defined unit scheme as a custom allocation scheme for re-use on other allocations, mark the
    Custom
     checkbox, and enter a unique title.
  • Absolute dollar
     - Use the absolute dollar allocation method to allocate a specific dollar amount. This type is most often used to allocate beginning capital amounts and guaranteed payments to partners. UltraTax CS requires that the beginning capital amount be expressed as an absolute dollar amount.
  • Loss
     - Use the loss allocation method to allocate an amount based on the percentage that you enter in the Loss column in the Allocations window in Partner Data Entry.
  • Profit
     - Use the profit allocation method to allocate an amount based on the percentage that you enter in the Profit column in the Allocations window in Partner Data Entry.
    note
    The Profit allocation type is available only when Advanced is selected as the allocation method.
  • Ownership capital
     - Use the ownership capital allocation method to allocate an amount based on the percentage that you enter in the Ownership capital column in the Allocations window in Partner Data Entry.
    note
    The Ownership capital allocation type is available only when Advanced is selected as the allocation method.
  • Greater of
     - Use the greater of allocation method to define a more complex allocation scheme in which you specify the greater of a maximum dollar amount or a percentage. Use another percentage or unit column with the greater of allocation type to ensure that any remaining amounts are allocated, and the partners' Schedules K-1 balance properly.
    note
    The Greater of allocation type is available only when Advanced is selected as the allocation method.

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