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Beginning-of-year and end-of-year percentage calculation on Schedule K-1, item J

UltraTax CS defaults the beginning-of-year and end-of-year profit, loss, and capital percentages for Schedule K-1, item J, to the 1st and last day a partner owns an interest in the partnership. It makes this determination by using information you enter in
Partner Data Entry
, then the
Changes of Ownership
 window.
For example, if a partner joins the partnership after the beginning of the partnership's tax year, the beginning-of-year percentages on Schedule K-1 will be the partner's percentages as of the day the partner joins the partnership, not zero percent.
In the
Partner Info, Basis
 folder, then the K1Misc screen, select
Display Schedule K-1 partner percentages using the partnership’s tax year
 to display the partners' percentages as of the beginning and end of the partnership's tax year. In the previous example, the beginning-of-year percentages displayed on Schedule K-1 will be zero percent.
In addition, you can calculate the end-of-year capital percentages based on the partners' share of ending capital. In the
Partner Info, Basis
 folder, then the K1Misc screen, select
Compute partner end-of-year ownership percentage based on ending capital
 to use this method.

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