2016-1065-MANUAL - ExacTax€¦ · 2016 Partnership Manual 4 New York – New York City ..... 108

2016

PARTNERSHIP

1065

INSTRUCTION MANUAL

2016 Partnership Manual

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GENERAL PROCEDURES .............................................................................................................................. 16 Overview ................................................................................................................................................ 16 Entering Return Information .................................................................................................................. 16 Input Form Assembly ............................................................................................................................ 17 Correcting a return ................................................................................................................................. 18

Changing a Return in Process ..................................................................................................................... 20 Procedure Charges ................................................................................................................................. 20 Proforma ................................................................................................................................................ 20 Customer and Technical Support ........................................................................................................... 20 Billing Queries and Reminders .............................................................................................................. 21

Remittance Envelopes ................................................................................................................................. 21

FORM [1] - GENERAL INFORMATION ....................................................................................................... 23 Overview ................................................................................................................................................ 23 Partnership Information ......................................................................................................................... 23 Year End Information ............................................................................................................................ 25 Late Filing Penalty ................................................................................................................................. 26 Extension Information ........................................................................................................................... 26 Invoices .................................................................................................................................................. 27

FORM [2] - CLIENT CONTACT INFORMATION AND TAX MATTERS PARTNER .......................... 29 Overview ................................................................................................................................................ 29 Designation of Tax Matters Partner ....................................................................................................... 29 Contact Information ............................................................................................................................... 30 Transmittal Letters and Filing Instructions ............................................................................................ 30 Invoices .................................................................................................................................................. 31 Mailing Slipsheet ................................................................................................................................... 31

FORM [3A] - OTHER INFORMATION ......................................................................................................... 34 Overview ................................................................................................................................................ 34 Schedule B - Other Information ............................................................................................................. 34 Cost of Goods Sold ................................................................................................................................ 36

FORM [3B] - PARTNER BASIS ....................................................................................................................... 39 Overview ................................................................................................................................................ 39 General Information ............................................................................................................................... 39 Increases and Decreases ......................................................................................................................... 39 Suspended Losses .................................................................................................................................. 41

FORM [4] - ELECTRONIC FILING ............................................................................................................... 43 Overview ................................................................................................................................................ 43 General Information ............................................................................................................................... 43 Personal Identification Number (PIN) Information ............................................................................... 44 Account Information .............................................................................................................................. 45

FORM [8] - FINANCIAL STATEMENT ........................................................................................................ 47

FORM [9] - ELECTIONS .................................................................................................................................. 49 Overview ................................................................................................................................................ 49 Detailed Information .............................................................................................................................. 49 Election Statements ............................................................................................................................... 49

FORM [10A] AND [10B] - PARTNER INFORMATION ............................................................................... 52 Overview ................................................................................................................................................ 52


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General Information .................................................................................................................................... 52 ELF information .......................................................................................................................................... 52 Other information ........................................................................................................................................ 52 Transmittal letter ......................................................................................................................................... 53

Schedule B-1 information group box ..................................................................................................... 53 Schedule M-3 information group box ......................................................................................................... 54

Form 8805 information .......................................................................................................................... 54 Section 108(i) election information group box ...................................................................................... 55 Basis ....................................................................................................................................................... 55

FORM [11] - SPECIAL ALLOCATIONS AND TRANSFERS OF INTEREST ......................................... 57 Overview ................................................................................................................................................ 57 Special Allocations ................................................................................................................................ 57 Transfers of Interest ............................................................................................................................... 57

FORM [12] - SCHEDULES K AND K-1 - SUPPLEMENTAL ITEMS ....................................................... 59 Overview ................................................................................................................................................ 59 Supplemental Items ............................................................................................................................... 59

FORM [13] – TRANSFER OF PARTNER INTEREST ................................................................................ 61 Entering change of ownership information (1065) ................................................................................ 61 Profit, Loss, and Ownership .................................................................................................................. 61

FORM [14] – DEPRECIATION SPECIAL ALLOCATION .......................................................................... 63 Overview ................................................................................................................................................ 63 Single Asset Allocation ......................................................................................................................... 63 Multiply Asset Allocation ...................................................................................................................... 63

FORM [20A]- INCOME AND DEDUCTIONS ............................................................................................... 65 Overview ................................................................................................................................................ 65 General information ............................................................................................................................... 65 Income ................................................................................................................................................... 65 Deductions ............................................................................................................................................. 66

FORM [20B] - COST OF GOODS SOLD ........................................................................................................ 70 Overview ................................................................................................................................................ 70 Cost of Goods Sold ................................................................................................................................ 70

FORM [21A] - SCHEDULE K - INCOME (LOSS) ........................................................................................ 73 Overview ................................................................................................................................................ 73 Income (Loss) ........................................................................................................................................ 73

FORM [21B]-2 - SCHEDULE K - DEDUCTIONS (1065) .............................................................................. 77 Overview ................................................................................................................................................ 77 Deductions ............................................................................................................................................. 77

FORM [21C] - SCHEDULE K - DPAD, SELF-EMPLOYMENT, CREDITS, AND FOREIGN ............... 80 Overview ................................................................................................................................................ 80 Domestic Production Activities Deduction (DPAD) ............................................................................. 80 Self-Employment ................................................................................................................................... 81 Credits .................................................................................................................................................... 82 Foreign Transactions ............................................................................................................................. 83

FORM [21C] - SCHEDULE K - DPAD, SELF-EMPLOYMENT, CREDITS, AND FOREIGN ............... 85 Overview ................................................................................................................................................ 85


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Domestic Production Activities Deduction (DPAD) ............................................................................. 85 Self-Employment ................................................................................................................................... 86 Credits .................................................................................................................................................... 87 Foreign Transactions ............................................................................................................................. 88

FORM [21D] - SCHEDULE K - AMT AND OTHER..................................................................................... 90 Overview ................................................................................................................................................ 90 Other ...................................................................................................................................................... 90

FORM [21E] - SCHEDULE K - FOREIGN TRANSACTIONS .................................................................... 92 Overview ................................................................................................................................................ 92 Foreign Transactions ............................................................................................................................. 92

FORM [22] - DEFERRAL OF CANCELLATION OF DEBT INCOME ELECTION ............................... 94 Overview ................................................................................................................................................ 94 Allocation of Deferred COD Income ..................................................................................................... 94

FORM [25] - APPORTIONMENT FORM COMBINATION TABLES ...................................................... 98 Overview ................................................................................................................................................ 98 Arizona .................................................................................................................................................. 98

Arizona Property Factor .............................................................................................................................. 98 Arizona Payroll Factor ................................................................................................................................ 98 Arizona Sales Factor ................................................................................................................................... 98

California ............................................................................................................................................... 99 California Property Factor ........................................................................................................................... 99 California Payroll Factor ........................................................................................................................... 100 California Sales Factor .............................................................................................................................. 100

Colorado .............................................................................................................................................. 100 Colorado Property Factor .......................................................................................................................... 100 Colorado Payroll Factor ............................................................................................................................ 101 Colorado Sales Factor ............................................................................................................................... 101

Connecticut .......................................................................................................................................... 101 Connecticut Property Factor ...................................................................................................................... 101

Hawaii .................................................................................................................................................. 102 Hawaii Property Factor ............................................................................................................................. 102 Hawaii Payroll Factor ................................................................................................................................ 102 Hawaii Sales Factor ................................................................................................................................... 102

Massachusetts ...................................................................................................................................... 103 Massachusetts Property Factor .................................................................................................................. 103 Massachusetts Payroll Factor .................................................................................................................... 103 Massachusetts Sales Factor ....................................................................................................................... 103

New Jersey ........................................................................................................................................... 104 New Jersey Property Factor – Business Allocation .................................................................................. 104 New Jersey Payroll Factor – Business Allocation .................................................................................... 105 New Jersey Sales Factor – Business Allocation ........................................................................................ 105 New Jersey Property Factor – Corporation Allocation ............................................................................. 105 New Jersey Payroll Factor – Corporation Allocation ............................................................................... 106 New Jersey Sales Factor – Corporation Allocation................................................................................... 106

New York ............................................................................................................................................. 106 New York Property Factor ........................................................................................................................ 106 New York Payroll Factor .......................................................................................................................... 107 New York Sales Factor ............................................................................................................................. 107


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New York – New York City ................................................................................................................ 108 New York City Property Factor ................................................................................................................ 108 New York City Payroll Factor .................................................................................................................. 108 New York City Sales Factor ...................................................................................................................... 109

New York – Yonkers ........................................................................................................................... 109 Yonkers Property Factor ........................................................................................................................... 109 Yonkers Payroll Factor .............................................................................................................................. 110

Yonkers Sales Factor ........................................................................................................................... 110

FORM [27] - PARTNER SCHEDULE K-1 ITEMS (1065) .......................................................................... 112 Overview .............................................................................................................................................. 112 Partner Information .............................................................................................................................. 112 Partner Share of Liabilities .................................................................................................................. 112 Partner Percentages .............................................................................................................................. 112 Other Information ................................................................................................................................ 113 Corporate ACE Adjustments ............................................................................................................... 114

FORM [30] - CAPITAL GAINS AND LOSSES ............................................................................................ 116 Overview .............................................................................................................................................. 116 Capital Gains and Losses ..................................................................................................................... 116

FORM [31] - RENT AND ROYALTY PROPERTIES ................................................................................. 119 Overview .............................................................................................................................................. 119 General Questions ................................................................................................................................ 119 Income ................................................................................................................................................. 120 Expenses .............................................................................................................................................. 121

FORM [32A] - FORM 1065/1041 SCHEDULE K-1 - INCOME ................................................................. 124 Overview .............................................................................................................................................. 124 General Information ............................................................................................................................. 124 Liabilities ............................................................................................................................................. 124 Income ................................................................................................................................................. 125

FORM [32B] - FORM 1065/1041 SCHEDULE K-1 - INCOME AND DEDUCTIONS ............................ 127 Overview .............................................................................................................................................. 127 Income (continued) .............................................................................................................................. 127 Deductions ........................................................................................................................................... 127

FORM [32C] - FORM 1065/1041 SCHEDULE K-1 - DPAD AND SELF-EMPLOYMENT .................... 130 Overview .............................................................................................................................................. 130 Domestic Production Activities Deduction (DPAD) ........................................................................... 130 Self-Employment ................................................................................................................................. 130

FORM [32D] - FORM 1065/1041 SCHEDULE K-1 - CREDITS AND FOREIGN ................................... 132 Overview .............................................................................................................................................. 132 Credit Information ............................................................................................................................... 132 Foreign Transactions ........................................................................................................................... 132

FORM [32E] - FORM 1065/1041 SCHEDULE K-1 - SEC M-3 INFO AND SEC 179 CO ....................... 134 Overview .............................................................................................................................................. 134 Section M-3 Information ..................................................................................................................... 134 Section 179 Carryovers ........................................................................................................................ 134

FORM [32F]- FORM 1065/1041 SCHEDULE K-1 - FOREIGN TRANSACTIONS ................................ 136


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Overview .............................................................................................................................................. 136 Foreign Transactions ........................................................................................................................... 136

FORM [32G] - FORM 1065/1041 SCHEDULE K-1 - COD INCOME ....................................................... 138 Overview .............................................................................................................................................. 138 Allocation of Deferred COD Income ................................................................................................... 138

FORM [32F] - FORM 1065/1041 SCHEDULE K-1 - INVESTMENT CREDIT ....................................... 141 Overview .............................................................................................................................................. 141 Rehabilitation Credit ............................................................................................................................ 141 Energy Credit ....................................................................................................................................... 141 Other Investment Credits ..................................................................................................................... 141

FORM [36] - FARM - INCOME ..................................................................................................................... 143 Overview .............................................................................................................................................. 143 General Information ............................................................................................................................. 143 Income ................................................................................................................................................. 143 At Risk and Subsidy Information ........................................................................................................ 144 Expenses .............................................................................................................................................. 145

FORM [38] - FARM RENTAL - INCOME ................................................................................................... 149 Overview .............................................................................................................................................. 149 General Questions ................................................................................................................................ 149 Income ................................................................................................................................................. 149 Subsidy Information ............................................................................................................................ 150 Expenses .............................................................................................................................................. 151

FORM [39] - CONTRACTS AND STRADDLES ......................................................................................... 156 Overview .............................................................................................................................................. 156 General Information ............................................................................................................................. 156 Section 1256 Contracts Marked to Market .......................................................................................... 156 Gains and Losses from Straddles ......................................................................................................... 156 Unrecognized Gain from Positions Held on Last Business Day ......................................................... 156

FORM [43A] - SALES ...................................................................................................................................... 159 Overview .............................................................................................................................................. 159 Forms 4797 and 6252 - General Information ...................................................................................... 159 Sale Information .................................................................................................................................. 159 Form 4797, Part III - Recapture ........................................................................................................... 160 Form 6252 - Current Year Installment Sale ......................................................................................... 160 Form 6252 - Related Party Installment Sale Information .................................................................... 160

FORM [43B] - LIKE-KIND EXCHANGES................................................................................................... 162 Overview .............................................................................................................................................. 162 General Information ............................................................................................................................. 162 Information on the Exchange ............................................................................................................... 162 Computation of Gain and Basis ........................................................................................................... 162 Related Party Exchanges ..................................................................................................................... 163

FORM [43D] - PRIOR YEAR INSTALLMENT SALE ............................................................................... 165 Overview .............................................................................................................................................. 165 General Information ............................................................................................................................. 165 Gross Profit and Contract Price ........................................................................................................... 166 Installment Sale Income....................................................................................................................... 166 Related Party Installment Sale Information ......................................................................................... 167


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FORM [43E] - CASUALTY AND THEFT LOSS ......................................................................................... 169 Overview .............................................................................................................................................. 169 General Information ............................................................................................................................. 169 Casualty or Theft Information ............................................................................................................. 169 Replacement Information .................................................................................................................... 170

FORM [43G] - FORM 1065/1041 SCHEDULE K-1 - SALE OF 179 ASSET ............................................ 173 Overview .............................................................................................................................................. 173 General Information ............................................................................................................................. 173 Sale Information .................................................................................................................................. 173 Installment Sale Information ............................................................................................................... 173 Related Party Installment Sale Information ......................................................................................... 174 Casualty or Theft Information ............................................................................................................. 174

FORM [43H] - SALE OF SECTION 179 ASSETS ....................................................................................... 176 Overview .............................................................................................................................................. 176 General Information ............................................................................................................................. 176 1065 Sale Information ......................................................................................................................... 176 Installment Sale Information ............................................................................................................... 176 Related Party Installment Sale Information ......................................................................................... 177 Casualty or Theft Information ............................................................................................................. 177

FORM [43I] - PRIOR YEAR CASUALTY AND THEFT LOSS ................................................................ 179 Overview .............................................................................................................................................. 179 General Information ............................................................................................................................. 179 Prior Year Casualty or Theft Information ............................................................................................ 179 Replacement Information .................................................................................................................... 180

FORM [43J] - LIKE-KIND EXCHANGE OF SECTION 179 ASSETS ..................................................... 182 Overview .............................................................................................................................................. 182 General Information ............................................................................................................................. 182 Information on the Exchange ............................................................................................................... 182 Computation of Gain and Basis ........................................................................................................... 182 Related Party Exchanges ..................................................................................................................... 183

FORM [43K] - REVENUE PROCEDURE 2009-20 (PONZI) ...................................................................... 185 Overview .............................................................................................................................................. 185 Computation of Deduction ................................................................................................................... 185 Required Statements and Declarations ................................................................................................ 185

FORM [50] – GENERAL DEPRECIATION ................................................................................................. 187 Overview .............................................................................................................................................. 187

Protecting Americans from Tax Hikes Act of 2015 .................................................................................. 187 Depreciation ......................................................................................................................................... 187

General ...................................................................................................................................................... 187 Alternative Minimum Tax Life ............................................................................................................ 193

FORM ASSET [51] - LISTED PROPERTY / OTHER ................................................................................ 196 Overview .............................................................................................................................................. 196 General Depreciation ........................................................................................................................... 196 Listed Vehicles .................................................................................................................................... 196

Luxury auto (passenger) ............................................................................................................................ 196 Listed vehicle ............................................................................................................................................ 197 Sport utility vehicle ................................................................................................................................... 197


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Exceptions for Sport utility vehicles ......................................................................................................... 197 Listed non-vehicle ..................................................................................................................................... 197

Additional Vehicle Information ........................................................................................................... 197 Expenses .............................................................................................................................................. 197 Section 280F Recapture ....................................................................................................................... 197

FORM [53] - OTHER TAB .............................................................................................................................. 200 Overview .............................................................................................................................................. 200

FORM [54] — FORMS 4562 – BONUS ELECTION ................................................................... 203 Overview .............................................................................................................................................. 203 Bonus Depreciation Election ............................................................................................................... 203

FORM [55A] — FORMS 4797 AND 6252 ...................................................................................... 205 Overview ........................................................................................................................................... 205

Overrides ................................................................................................................................................ 205 Sale Information ............................................................................................................................ 207 Form 4797, Part III — Recapture ........................................................................................... 208 Form 6252 — Current Year Installment Sale ..................................................................... 208 Form 6252 — Related Party Installment Sale Information ........................................... 208

FORM [55B] — LIKE-KIND EXCHANGES ..................................................................................... 211 Overview ........................................................................................................................................... 211 Form 8824 — Like-Kind Exchanges — General Information ........................................ 211 Part I — Information on the Exchange ................................................................................. 212 Part III — Computation of Gain and Basis .......................................................................... 212 Related Party Exchanges ............................................................................................................ 213

FORM [55C] — BUSINESS CASUALTY / THEFT LOSS ......................................................................... 216 Overview .............................................................................................................................................. 216

Asset transfer ............................................................................................................................................. 216 Form 4684 — General Information ..................................................................................................... 216 Business / Income Producing Properties.............................................................................................. 216 Business / Income Producing Replacement Information ..................................................................... 218

FORM [59] - OTHER SALE AND DEPRECIATION INFORMATION ................................................... 220 Overview .............................................................................................................................................. 220 Form 4797 - Other Information ........................................................................................................... 220 Form 4562 - Other Information ........................................................................................................... 220 Bonus Depreciation Elections .............................................................................................................. 221

FORM [60A] - BALANCE SHEETS PER BOOKS ...................................................................................... 223 Overview .............................................................................................................................................. 223 Assets ................................................................................................................................................... 223

FORM [60A]- BALANCE SHEETS PER BOOKS ....................................................................................... 225 Overview .............................................................................................................................................. 225 Liabilities and Partners' Capital ........................................................................................................... 225

CALIFORNIA BALANCE SHEET PER BOOKS ........................................................................................ 226 Schedule L ........................................................................................................................................... 226 Schedule O ........................................................................................................................................... 227

FORM [61] - SCHEDULES M-1 AND M-2 ................................................................................................... 229


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Overview .............................................................................................................................................. 229 Reconciliation of Income (Loss) per Books ........................................................................................ 229 Analysis of Partners' Capital Accounts ................................................................................................ 232

FORM [62A] - SCHEDULE M-3 - FINANCIAL INFORMATION ............................................................ 234 Overview .............................................................................................................................................. 234 General Information ............................................................................................................................. 234 Financial Information .......................................................................................................................... 235 Net Income (Loss) Reconciliation ....................................................................................................... 236

FORM [62B] - SCHEDULE M-3 - INCOME (LOSS) ITEMS..................................................................... 240 Overview .............................................................................................................................................. 240 Income (Loss) Items ............................................................................................................................ 240 Book-Tax Differences.......................................................................................................................... 241

FORM [63C] - SCHEDULE M-3 - EXPENSE AND DEDUCTION ITEMS.............................................. 243 Overview .............................................................................................................................................. 243 Expense and Deduction Items .............................................................................................................. 243

FORM [63] - SCHEDULE M-3 - SUPPLEMENTAL ATTACHMENT ..................................................... 246 Overview .............................................................................................................................................. 246 Cost of Goods Sold .............................................................................................................................. 246 Interest Income .................................................................................................................................... 247 Interest Expense ................................................................................................................................... 247

FORM [64] - ADDITIONAL INFORMATION FOR SCHEDULE M-3 FILERS..................................... 250 Overview .............................................................................................................................................. 250 Additional Information for Schedule M-3 Filers ................................................................................. 250

FORM [65] - SEPARATELY STATED INCOME AND EXPENSES ........................................................ 252 Overview .............................................................................................................................................. 252 Income (Loss) ...................................................................................................................................... 252 Section 179 .......................................................................................................................................... 253 Deductions ........................................................................................................................................... 253 Alternative Minimum Tax (AMT) Items ............................................................................................. 254 Partner Share of Liabilities .................................................................................................................. 255

FORM [73A] - NONCASH CONTRIBUTIONS LESS THAN $5,000 ........................................................ 257 Overview .............................................................................................................................................. 257 General Information ............................................................................................................................. 257 Partial Interest Information .................................................................................................................. 258 Restricted Use ...................................................................................................................................... 258

FORM [73B] - NONCASH CONTRIBUTIONS GREATER THAN $5,000 .............................................. 260 Overview .............................................................................................................................................. 260 General Information ............................................................................................................................. 260 Donated Property Information ............................................................................................................. 260 Appraiser Information.......................................................................................................................... 261 Donee Acknowledgment...................................................................................................................... 261

FORM [80A] - CREDITS - FORMS 5884 AND 6478 ................................................................................... 263 Overview .............................................................................................................................................. 263 Other Credits ........................................................................................................................................ 263 Form 5884 - Work Opportunity Credit ................................................................................................ 263 Form 6478 - Biofuel Producer Credit .................................................................................................. 264


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FORM [80B] - CREDITS - FORMS 6765, 8820, AND 8826 ........................................................................ 266 Overview .............................................................................................................................................. 266 Form 6765 - Credit for Increasing Research Activities ....................................................................... 266 Form 8820 - Orphan Drug Credit ........................................................................................................ 266 Form 8826 - Disabled Access Credit ................................................................................................... 267

FORM [80C] - CREDITS - FORMS 8835 AND 8844 ................................................................................... 269 Overview .............................................................................................................................................. 269 Form 8835 - Electricity, Refined and Indian Coal Credit .................................................................... 269 Form 8844 - Empowerment Zone Employment Credit ....................................................................... 269

FORM [80D] - CREDITS - FORMS 8845, 8846, 8864, AND 8874 .............................................................. 271 Overview .............................................................................................................................................. 271 Form 8845 - Indian Employment Credit .............................................................................................. 271 Form 8846 - Tip Tax Credit ................................................................................................................. 271 Form 8864 - Biodiesel and Renewable Diesel Fuels Credit ................................................................ 271 Form 8874 - New Markets Credit ........................................................................................................ 271

FORM [80E] - CREDITS - FORMS 8881, 8882, 8932, AND 8941 (1065) ................................................... 273 Overview .............................................................................................................................................. 273 Form 8881 - Credit Small Emp Pension Plan Startup Costs ............................................................... 273 Form 8882 - Credit Employer-Provided Childcare Facilities .............................................................. 273 Form 8932 - Credit for Employer Differential Wage Payments .......................................................... 273 Form 8941 - Cr Small Employer Health Insurance Premiums ............................................................ 274

FORM [80F] - INVESTMENT CREDIT ....................................................................................................... 276 Overview .............................................................................................................................................. 276 Rehabilitation Credit ............................................................................................................................ 276 Energy Credit ....................................................................................................................................... 276 Other Investment Credits ..................................................................................................................... 276

FORM [80H] - ANNUAL STATEMENT FOR LOW-INCOME HOUSING CREDIT ............................ 279 Overview .............................................................................................................................................. 279 General and Compliance Information .................................................................................................. 279 Computation of Credit ......................................................................................................................... 279

FORM [80I] - RECAPTURE OF INVESTMENT CREDIT ........................................................................ 281 Overview .............................................................................................................................................. 281 Recapture Information ......................................................................................................................... 281

FORM [81A] - CREDIT FOR FEDERAL TAX PAID ON FUELS - PAGES 1 AND 2 ............................ 283 Overview .............................................................................................................................................. 283 Fuels Credit Information ...................................................................................................................... 283

FORM [81B] - CREDIT FOR FEDERAL TAX PAID ON FUELS - PAGES 2 AND 3 ............................ 285 Overview .............................................................................................................................................. 285 Fuels Credit Information ...................................................................................................................... 285

FORM [81C] - CREDIT FOR FEDERAL TAX PAID ON FUELS - PAGES 3 AND 4 ............................ 287 Overview .............................................................................................................................................. 287 Fuels Credit Information ...................................................................................................................... 287

FORM [82] - GENERAL INFORMATION - FORMS 3468, 6478, 6765, 8835, 8941 ................................ 289 Overview .............................................................................................................................................. 289 Form 3468 – Investment Credit ........................................................................................................... 289


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Form 6478 – Biofuel Producer Credit ................................................................................................. 289 Form 6765 – Credit for Increasing Research Activities ...................................................................... 289 Form 8835 – Electricity, Refined and Indian Coal Credit ................................................................... 289 Form 8941 – Cr Small Employer Health Insurance Premiums ........................................................... 290

FORM [83] - CREDITS FROM COOPERATIVES ..................................................................................... 292 Overview .............................................................................................................................................. 292 Credit Information ............................................................................................................................... 292

FORM [90] – UNIVERSAL EXPLANATION AND GENERAL FOOTNOTES ...................................... 294 Overview .............................................................................................................................................. 294 Universal Explanations ........................................................................................................................ 294

FORM [90A] - CHANGE OF ADDRESS - BUSINESS ................................................................................ 296 Overview .............................................................................................................................................. 296

FORM [90B] - REPORTABLE TRANSACTION DISCLOSURE STATEMENT ................................... 298 Overview .............................................................................................................................................. 298 Reportable Transaction Information .................................................................................................... 298

FORM [90C] - REPORTABLE TRANSACTION - ENTITIES INVOLVED IN TRANSACTION ....... 300 Overview .............................................................................................................................................. 300 Entity Involved in Transaction ............................................................................................................ 300

FORM [90D] - ASSET ACQUISITION STATEMENT ............................................................................... 302 Overview .............................................................................................................................................. 302 General Information ............................................................................................................................. 302 Original Statement of Assets Transferred ............................................................................................ 302 Supplemental Statement ...................................................................................................................... 302

FORM [90E] - ELECTION TO HAVE A TAX YEAR OTHER THAN A REQUIRED YEAR .............. 305 Overview .............................................................................................................................................. 305 Election Information ............................................................................................................................ 305 Extension Information ......................................................................................................................... 306

FORM [90F] - REQUIRED PAYMENT OR REFUND ............................................................................... 308 Overview .............................................................................................................................................. 308 Payment or Refund Information .......................................................................................................... 308

FORM [90G] - APPLICATION TO USE LIFO METHOD ......................................................................... 311 Overview .............................................................................................................................................. 311 Statement of Election Under Section 472 ............................................................................................ 311 LIFO Inventory Requirements ............................................................................................................. 311 Specific Goods (Unit) Method ............................................................................................................. 311 Dollar-Value Method ........................................................................................................................... 312

FORM [90H] - APPLICATION TO USE LIFO METHOD, PAGE 2......................................................... 314 Overview .............................................................................................................................................. 314 Inventory Price Index Computation Method ....................................................................................... 314 Other Information ................................................................................................................................ 314

FORM [90I] - CONSENT TO DISCLOSE AND USE TAX RETURN INFORMATION ........................ 316 Overview .............................................................................................................................................. 316 Specific Recipient and Use Consents .................................................................................................. 316

FORM [91A] - POWER OF ATTORNEY AND TAX INFORMATION AUTHORIZATION ............... 318


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Overview .............................................................................................................................................. 318 Forms 2848 and 8821 - General Information ...................................................................................... 318 Representative or Appointee Information ............................................................................................ 318

FORM [91B] - POWER OF ATTORNEY AND TAX INFORMATION AUTHORIZATION, PAGE 2 320 Overview .............................................................................................................................................. 320 Matters ................................................................................................................................................. 320 Authorized Acts and Signature of Taxpayer ........................................................................................ 320

FORM [95A] - AMENDED RETURN ............................................................................................................ 322 Overview .............................................................................................................................................. 322 General Information ............................................................................................................................. 322 TEFRA/NonTEFRA Determination .................................................................................................... 322 Electing Large Partnership Amended Information .............................................................................. 323 Explanation of Changes ....................................................................................................................... 323

FORM [95B] - AMENDED RETURN - PART I ........................................................................................... 325 Overview .............................................................................................................................................. 325 Amended Information .......................................................................................................................... 325

FORM [95C] - AMENDED RETURN - PART I, PAGE 2 ........................................................................... 327 Overview .............................................................................................................................................. 327 Amended Information .......................................................................................................................... 327

FORM [95R] - REPORT OF FOREIGN BANK ACCOUNTS .................................................................... 329 Overview .............................................................................................................................................. 329 General and Filer Information ............................................................................................................. 329 Other Information ................................................................................................................................ 330

FORM [95S] - FOREIGN FINANCIAL ACCOUNTS - FORM 8938 AND FORM 114 (FBAR) ............ 332 Overview .............................................................................................................................................. 332 Financial Accounts Information .......................................................................................................... 332 Form 114 – Report of Foreign Bank Account (FBAR) ....................................................................... 333 Form 8938 – Specified Foreign Financial Assets ................................................................................ 333

FORM [95T] - STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETS ................................. 335 Overview .............................................................................................................................................. 335 General Information ............................................................................................................................. 335 Tax Items Attributable to Assets ......................................................................................................... 335 Excepted Foreign Financial Assets ...................................................................................................... 335

FORM [95U] - STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETS, PAGE 2 ................. 337 Overview .............................................................................................................................................. 337 Other Foreign Assets ........................................................................................................................... 337

FORM [CA1A]- CALIFORNIA LLC RETURN ........................................................................................... 339 Overview .............................................................................................................................................. 339 General Information ............................................................................................................................. 339 Disregarded Entity Information ........................................................................................................... 340 Voucher Information............................................................................................................................ 340 Electronic Funds Transfer Payments ................................................................................................... 340 Other Client Document Information .................................................................................................... 340

FORM [CA1B] - CALIFORNIA OTHER INFORMATION ....................................................................... 342 Overview .............................................................................................................................................. 342


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Other Information ................................................................................................................................ 342

FORM [CA2] - CALIFORNIA PARTNERSHIP RETURN ........................................................................ 344 Overview .............................................................................................................................................. 344 General Information ............................................................................................................................. 344 Voucher Information............................................................................................................................ 345 Electronic Funds Transfer Payments ................................................................................................... 345 Other Client Document Information .................................................................................................... 345 Other Information ................................................................................................................................ 345

FORM [CA3A] - CALIFORNIA PAYMENT, EXTENSION, USE TAX, PENALTY & INTEREST .... 347 Overview .............................................................................................................................................. 347 Payments .............................................................................................................................................. 347 Extension ............................................................................................................................................. 347 Use Tax ................................................................................................................................................ 347 Penalties and Interest ........................................................................................................................... 347

FORM [CA3B] - CALIFORNIA PAYMENT, ESTIMATE, EXT, USE TAX, PEN & INT ..................... 350 Overview .............................................................................................................................................. 350 Payments .............................................................................................................................................. 350 Estimates .............................................................................................................................................. 350 Extension ............................................................................................................................................. 351 Use Tax ................................................................................................................................................ 351 Penalties and Interest ........................................................................................................................... 351

FORM [CA4] - CALIFORNIA LLC INCOME ............................................................................................. 354 Overview .............................................................................................................................................. 354 LLC Income Worksheet....................................................................................................................... 354

FORM [CA5] - CALIFORNIA SCHEDULES M-1 AND M-2 ..................................................................... 356 Overview .............................................................................................................................................. 356 Reconciliation of Income (Loss) per Books ........................................................................................ 356 Analysis of Partners' Capital Accounts ................................................................................................ 358

FORM [CA6] - CALIFORNIA ORDINARY INCOME ............................................................................... 361 Overview .............................................................................................................................................. 361 Ordinary Income Adjustments ............................................................................................................. 361 Depreciation ......................................................................................................................................... 362

FORM [CA7] - CALIFORNIA CAPITAL GAINS AND LOSSES ............................................................. 364 Overview .............................................................................................................................................. 364 Capital Gains and Losses ..................................................................................................................... 364

FORM [CA8] - CALIFORNIA SCHEDULE K - INCOME (LOSS) ........................................................... 366 Overview .............................................................................................................................................. 366 Income (Loss) ...................................................................................................................................... 366

FORM [CA9] - CALIFORNIA SCHEDULE K - DEDUCTIONS ............................................................... 370 Overview .............................................................................................................................................. 370 Deductions ........................................................................................................................................... 370 Withholding ......................................................................................................................................... 372 Credits .................................................................................................................................................. 373

FORM [CA10] - CALIFORNIA SCHEDULE K - ADJUSTS, OTHER AND SALE ................................ 376 Overview .............................................................................................................................................. 376


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Other .................................................................................................................................................... 376 Disposal of Property with Section 179 Expense in Prior Year ............................................................ 377

FORM [CA11] - CALIFORNIA FORM 541/565/568 SCH K-1 - INCOME .............................................. 379 Overview .............................................................................................................................................. 379 General Information ............................................................................................................................. 379 Income ................................................................................................................................................. 379

FORM [CA12] - CALIFORNIA FORM 541/565/568 SCH K-1 - DEDUCTIONS ..................................... 382 Overview .............................................................................................................................................. 382 Deductions ........................................................................................................................................... 382

FORM [CA13] - CALIFORNIA FORM 541/565/568 SCH K-1 - CREDITS .............................................. 384 Overview .............................................................................................................................................. 384 Withholding ......................................................................................................................................... 384 Credits .................................................................................................................................................. 384 K-1 Business Income ........................................................................................................................... 385

FORM [CA14] - CALIFORNIA FORM 541/565/568 SCH K-1 - AMT AND OTHER ............................. 387 Overview .............................................................................................................................................. 387 Adjustments and Tax Preference Items ............................................................................................... 387 Tax-Exempt Income and Nondeductible Expenses ............................................................................. 387 Other Information ................................................................................................................................ 387

FORM [CA15A] - CALIFORNIA FARM - INCOME .................................................................................. 390 Overview .............................................................................................................................................. 390

FORM [CA15B] - CALIFORNIA FARM - EXPENSES .............................................................................. 392 Overview .............................................................................................................................................. 392

FORM [CA16A] - CALIFORNIA FARM RENTAL - INCOME ................................................................ 394 Overview .............................................................................................................................................. 394

FORM [CA16B] - CALIFORNIA FARM RENTAL - EXPENSES ............................................................ 396 Overview .............................................................................................................................................. 396

FORM [CA17] - CALIFORNIA OTHER SALE AND DEPRECIATION INFORMATION .................. 398 Overview .............................................................................................................................................. 398

FORM [CA18] - CALIFORNIA PARTNER'S K-1 ITEMS ......................................................................... 400 Overview .............................................................................................................................................. 400 Partners' Percentages ........................................................................................................................... 400 Corporate ACE Adjustments ............................................................................................................... 400

FORM [CA19] - CALIFORNIA SALES ........................................................................................................ 402 Overview .............................................................................................................................................. 402

FORM [CA20A] - CALIFORNIA LIKE-KIND EXCHANGES .................................................................. 404 Overview .............................................................................................................................................. 404

FORM [CA20B] - CALIFORNIA LIKE-KIND EXCHANGES OUTSIDE CALIFORNIA .................... 406 Overview .............................................................................................................................................. 406 General Information ............................................................................................................................. 406 Information on the Exchange ............................................................................................................... 406 Computation of Gain and Basis ........................................................................................................... 406 Schedule A ........................................................................................................................................... 406


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FORM [CA21] - CALIFORNIA PRIOR YEAR INSTALLMENT SALE .................................................. 408 Overview .............................................................................................................................................. 408

FORM [CA22] - CALIFORNIA PRIOR YEAR CASUALTY AND THEFT LOSS ................................. 410 Overview .............................................................................................................................................. 410

FORM [CA23] - CALIFORNIA FORM 541/565/568 K-1 - SALE OF 179 ASSET ................................... 412 Overview .............................................................................................................................................. 412

FORM [CA24] - CALIFORNIA SALE OF SECTION 179 ASSETS .......................................................... 414 Overview .............................................................................................................................................. 414

FORM [CA25] - CALIFORNIA DEPRECIATION AND AMORTIZATION .......................................... 416 Overview .............................................................................................................................................. 416 Depreciation and Amortization Expense ............................................................................................. 416

FORM [CA26] - CALIFORNIA POWER OF ATTORNEY ....................................................................... 418 Overview .............................................................................................................................................. 418 General Information ............................................................................................................................. 418 Representative Information .................................................................................................................. 418

FORM [CA27] - CALIFORNIA SCHS K AND K-1 - SUPPLEMENTAL ITEMS ................................... 420 Overview .............................................................................................................................................. 420 Supplemental Items ............................................................................................................................. 420

FORM [CA28] - CALIFORNIA ALLOCATED AMOUNTS ...................................................................... 422 Overview .............................................................................................................................................. 422 Allocated Items .................................................................................................................................... 422 Nonbusiness Income from Schedule K ................................................................................................ 422 Sale of Nonbusiness Assets ................................................................................................................. 424 Nonbusiness Expenses from Schedule K ............................................................................................. 426

FORM [CA29] - CALIFORNIA RENT AND ROYALTY PROPERTIES ................................................ 428 Overview .............................................................................................................................................. 428

FORM [CA30] - CALIFORNIA LIKE-KIND EXCHANGE OF SECTION 179 ASSETS ...................... 430 Overview .............................................................................................................................................. 430

FORM [CA31] - CALIFORNIA ELECTRONIC FILING INFORMATION ............................................ 432 Overview .............................................................................................................................................. 432 General Information ............................................................................................................................. 432 Electronic Funds Withdrawal Information .......................................................................................... 432

FORM [CA40] - CALIFORNIA CASUALTY AND THEFT LOSS ........................................................... 435 Overview .............................................................................................................................................. 435

FORM [CA45] - CALIFORNIA BANK INFORMATION .......................................................................... 437 Overview .............................................................................................................................................. 437 Account Information ............................................................................................................................ 437

FORM [CA46A] - CALIFORNIA REAL ESTATE WITHHOLDING RECEIVED ................................ 439 Overview .............................................................................................................................................. 439 593 Facsimile ....................................................................................................................................... 439 593 Escrow or Exchange Information ................................................................................................. 439 593 Preparer Information ..................................................................................................................... 439


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FORM [CA46B] - CALIFORNIA WITHHOLDING TAX STATEMENT ................................................ 441 Overview .............................................................................................................................................. 441 592-B Facsimile ................................................................................................................................... 441 592-B Type of Income ......................................................................................................................... 441 592-B Tax Withheld ............................................................................................................................ 441

FORM [CA46C] - CALIFORNIA WITHHOLDING RETURN ................................................................. 443 Overview .............................................................................................................................................. 443 Withholding Return ............................................................................................................................. 443

FORM [CA53] - CALIFORNIA IRS REV PROC 2009-20 .......................................................................... 460 Overview .............................................................................................................................................. 460

FORM [CA56] - CALIFORNIA SCHEDULE R ........................................................................................... 462 Overview .............................................................................................................................................. 462 Allocation of Income ........................................................................................................................... 462 Partner's Share of Distributive Items ................................................................................................... 462 Apportionment ..................................................................................................................................... 462

FORM [CA57A] - CALIFORNIA WITHHOLDING ESTIMATES ........................................................... 464 Overview .............................................................................................................................................. 464 Withholding Payments ......................................................................................................................... 464

FORM [CA58] - CALIFORNIA SEPARATELY STATED INCOME AND EXPENSES ........................ 467 Overview .............................................................................................................................................. 467 Income (Loss) ...................................................................................................................................... 467 Section 179 .......................................................................................................................................... 467 Deductions ........................................................................................................................................... 468 Alternative Minimum Tax (AMT) Items ............................................................................................. 468

APPENDIX A - CROSS REFERENCE .......................................................................................................... 469 Federal - Sort by form number ............................................................................................................ 469 California - Sort by form number ....................................................................................................... 470 Federal - Sort by form description ....................................................................................................... 471 California - Sort by form description .................................................................................................. 473


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General Procedures

Overview The following are general guidelines that will help assure that your returns are processed accurately, swiftly, and at a lower cost to you. Failure to follow these general guidelines may, in some cases, result in extra processing charges. Where such charges apply, they are noted in the instructions. We strongly recommend that all users take a few moments to review this section before preparing a return.

Entering Return Information Before you begin to prepare a return, take a moment to familiarize yourself with some of the procedures that should be used when entering certain types of data. Whether you enter data onto printed input forms or directly into a computer, you should familiarize yourself with these procedures. Print legibly, do not use cursive handwriting.

Input Forms ExacTax has designed special versions of the most commonly used ExacTax input forms to facilitate ease of use for service bureau clients. These forms can be used in conjunction with the other ExacTax® forms to submit all input to ExacTax.

For quick referral and organization purposes, a number has been assigned to each of the forms using the following numerical ranges:

Forms Type 1 - 19 General Information 20 - 49 Income 50 – 59 Depreciation 60 – 69 Adjustments to Income70 - 79 Itemized Deductions 80 - 84 Credits 85 - 89 Taxes 90 - 99 Other

These numbers are intended to make it easier for the preparer to locate forms but they are not part of the ExacTax® system. The actual ExacTax® form (or form) name is printed within a bold box in the upper left-hand corner, such as 1040 on the General Information form [1]. In some cases ExacTax has combined two or more separate ExacTax® forms into a single ExacTax form. On these input forms a bold box will surround the ExacTax® form name at the beginning of each new form section. See Input Form Rent [31] with sections for Rent-2 and StCO. When making telephone re-run changes, you must refer to the form name, activity unit (when applicable), section and box or field that you are changing.

T/S/J Fields Enter "T" for taxpayer, "S" for spouse, or "J" for joint. This code box is used to indicate that an entry or form should be allocated to the taxpayer, the spouse, or should be split evenly between the two. This type of code box is only for use with married filing joint returns, and when a T/S/J code box is left blank, the system will assume that the entry or form should be allocated to the taxpayer.

For example, enter an "S" in Code Box 2 of Input Form 2106 [72] to indicate that the spouse's name should be printed on Form 2106.

Check Boxes Enter a check mark or an "X" in the box denoted with the check symbol. For example, check Box 14 on Input Form 1040 [1] to indicate that the taxpayer is legally blind.

Dates There are generally two types of date code boxes: six-digit dates (mmddyy) and eight-digit dates (mmddyyyy). The format is normally indicated as part of the box description. You must always enter all six digits or eight digits. To print the word "VARIOUS" on a government form where a date is required, enter the letter “V” in the date field. Various cannot be used to replace all date fields; some fields require a date (ie. date acquired on depreciation).


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For example, in Box 12 on Input Form 8283P1 [73A], you would enter January 1, 2010 as 01 01 09, or enter a “V” for “Various” anywhere in the date field.

Percentage Entries When a percentage is required in an input field, the field description will indicate the maximum number of digits allowable before and after the decimal point, such as xxx.xxxx. All places to the right of the decimal must be filled in. For example, valid entries would be 83.7500, 20.24 and 33.33. One hundred percent should be entered as 100. All places to the right of the decimal point will be zero filled when an amount is not entered.

Alpha or Text Information A text or "alpha" code box will denote the maximum number of characters (a character consists of a letter, number, punctuation mark or a space) that it can accept with a number in parentheses. For example, the street address in Box 41 on Input Form 1040 can be a maximum of 35 characters, and the code box description is "Address (35)". If the entry exceeds the code box capacity, the entry will be truncated when the return prints.

Descriptions Never change, whiteout or tape over any of the preprinted code box descriptions that are printed on an input form. ExacTax uses the code box number to identify your written data, not the code box description.

Coded Areas vs. Shaded Areas Only data entered in code boxes is used in the calculation of the return. Any notes or entries made in the shaded areas of an input form are for accountant notes and do not become a part of the return.

Always Use a Pencil We require that you print legibly using a #2 soft lead pencil. Never type entries or use ink on the computer-generated input forms. A procedure charge will apply for typed or ink entries.

Do Not Enter Pennies or Cents When entering amount fields, always enter a whole dollar amounts. A procedure charge will apply if fractional dollar amounts are used anywhere in the return.

Decimals and Commas Do not use decimals or commas when entering amounts. Only enter decimals where specified.

Illegible Entries Poorly written or illegible forms may be subject to a “No free rerun” status. This will be denoted in the Notes to Accountant on the Form PI.

Do Not Staple Input Forms Paper clip all schedules, statements and W-2 envelopes to the left center behind the Input Forms. Do not staple anything together, including W-2's. Procedure charges will apply if staples are used.

Input Form Assembly We suggest that you keep a copy of all input forms, source documents and supporting schedules that you send to ExacTax for processing. This can be helpful if we need to contact you to clarify data while the return is still in process. When submitting input forms to ExacTax, assemble and paper clip the input forms, source documents and supporting schedules as follows:

1. Input Form PI (Never copy or alter the Form PI or use a proforma from another return. This form uses a unique log number for each return and can never be duplicated without destroying the integrity of the original proformaed tax return data assigned to that log number.) Two procedure charges will apply for any copied, altered or invalid Form PI.

2. Client Properties (if needed for additional states)

3. Input Forms in numerical order except for sub-form input forms (i.e. depreciation or Keogh) which are placed immediately after the applicable schedule to which they relate (i.e. Business, Rental, K-1).

4. Other forms or supporting schedules to be copied and attached to the return.

5. The federal and state copies (only copies B and 2) of Form W-2, enclosed in an envelope. (Put your accountant number on the back of each W-2).

Note: A return sent without a Form PI or a copied or altered Form PI or using a proforma from another return will be subject two procedure charges.


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Do not send any unnecessary supporting documents such as 1099's, medical bills or escrow papers. All documents submitted must be letter size (8 1/2" x 11") and printed on one side only.

W2s and Attachments Send only the Federal (copy B) and state copies (copy 2) of Form W-2. If the "B" or state copy is not available and you are submitting another copy, mark it "B" or "state" copy. Never send copy "C" to ExacTax. Do not staple W-2 forms together. All items attached to the input forms MUST have your account number clearly written on them. You can write on the back side. For W2 forms, write your number on the outside of the envelope containing the W2s. Attachments for photocopying must have your account number written on each page. If these items should become separated and have no identification we may not be able to associate it to the correct return.

Deleting Proforma Pages Never remove an input form with proforma data on it. Pre-printed data is in the input file and to remove it the item must be deleted by the data entry operator. If you discard the form or cover over the item, our operator will not delete the information. Just cross out the input form with a red pencil.

Helpful hints for processing an accurate and complete return The following are general guidelines that will help assure that your returns are processed accurately, swiftly, and at a lower cost to you. Failure to follow these general guidelines may, in some cases, result in extra procedure charges. Where such charges apply, they are noted in the “Notes to Accountant” section of Form PI.

Make sure all forms are filled in completely and accurately.

Paper clip all schedules, statements and W-2 envelopes to the left center behind the Input Forms. Do not staple anything together, including input forms and W-2's.

Write dark enough so your entries can easily be seen by the Data Entry operator.

We require that you use a #2 pencil. If you are using a mechanical pencil we recommend using .07 lead.

Enter a check mark or an "X" in the box denoted with the check symbol . For example, check Box 14 on Input Form 1040 [1] to indicate that the taxpayer is legally blind.

Erased items should not be blurred or darkened out from erasure – make sure to completely erase errors and clearly write corrections.

Make sure Taxpayer Social Security Number on Form PI is the same as the Taxpayer Social Security Number on Form 1.

When deleting a line item use a red pencil to cross it out completely and clearly.

When deleting an entire form or form section use a red pencil to place an “X” through the entire form or section.

Make sure state(s) are indicated with residency status on Form PI.

Make sure processing options (Form PI) are filled in completely (i.e. special shipping instructions, expedite service, following year Tax Organizer request, etc).

When processing a proformaed return submit all of the input forms with proforma data that were originally sent to you. For deleting data or forms, see above.

Make sure depreciation input forms are placed immediately after the applicable schedule to which they relate (i.e. Business, Rental, K-1).

For any auto expense Total miles and the Business miles must be entered to have ExacTax compute the business use percentage.

Express Mail to ExacTax When sending packages to ExacTax via Express Mail, DO NOT send it to our PO Box; this will delay delivery by two days. Always send Express Mail to our street address: 1100 E Orangethorpe Ave., Suite 100, Anaheim, CA 92801

Correcting a return Free Reruns


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1040 reruns that are called in to the Telephone Rerun Department, or sent back to us for reprocessing by February 28, 2017 will be rerun at no additional charge. These reruns will only be free of charge if they reach ExacTax by February 28, 2017. This does not apply to RDE Processing.

Telephone Rerun Hotline

(844) 327-6740 or (714) 284-4802

Reruns after February 28, 2017 If an error is made by ExacTax in the processing of a return, any changes necessary to correct that error will be made at no charge. This applies to both Individual and Business returns. If rerunning a return due to an ExacTax error results in creating new billable forms/schedules, the applicable fee will be billed for those forms/schedules. If, in the process of doing a rerun to correct an ExacTax error, the preparer wishes to make additional corrections/changes other than the change to correct the error, the rerun will then become billable.

Billable Reruns Reruns to make preparer additions or corrections to returns are billable. If processing a billable rerun results in creating new billable forms/schedules (i.e. additional state/city return), the additional fee will be billed.

If you have received a completed return from ExacTax and need to make changes to the return, you may make these changes by telephone. Changes can only be made to computer Input Forms. Any changes to manual statements are the responsibility of the accountant.

There is a charge for a telephone rerun per 10 changes with a maximum of 30 changes. If you need to make more than 30 changes, you must send the return back for reprocessing. Attach a note to the return stating that it is an accountant rerun and indicate the changes or tell us if it is to be completely repunched.

1040 reruns are billable at $11.30 per 10 changes with a maximum of 30 changes.

Business reruns are billed at $24.00 (up to 20 partners or 15 changes), over 20 (40% of return fee)

Have the following information available when calling the Telephone Rerun Hotline:

Your ExacTax account number.

Method of shipment for the rerun, if different from the original return.

The number of changes you are going to make (limit 30).

The ExacTax log number shown on the top of Input Form PI.

Your client's last name.

The changes desired, indicating the input form, activity unit number, section and zip box numbers of any entries to be added, changed or deleted. Be sure to indicate a page or overflow number, if applicable. The person who is authorizing the changes.

Note: Telephone Rerun personnel are not trained to answer your input and technical questions. If you have questions regarding those areas, call Customer Support before calling in a Telephone Rerun.

Quality Control Billable Rerun Input forms that are submitted with incomplete information may lead to a Quality Control rerun billable at $10.95 ($22.00 for business returns) in order to generate an accurate return.

Words and numbers on input forms should not be subject to interpretation by ExacTax’s Data Entry operators. Poorly written or illegible forms will be photocopied as evidence and a record of the log number will be noted for the return. If a subsequent call is made by the preparer to make a correction to this return, it will be a billable rerun.

Input forms that are submitted with incomplete information may lead to a billable rerun to generate an accurate return. ExacTax will make all attempts to contact the preparer to get the information necessary to generate an accurate and complete return. If after two (2) business days, no contact can be established with the preparer, the return will be processed as is, or if unable to be processed it will be returned to the preparer. A record of the log number will be noted for this return. If a subsequent call is made by the preparer to make a correction to this return, it will be a billable rerun.

Reruns with Special Handling


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When special handling instructions, such as expedited processing, special shipping or a different shipping address, are entered on Input Form PI they remain in effect each time the return is reprocessed. Customer Support will normally reconfirm these items when entering a rerun. However it is the caller’s responsibility to confirm any changes to the original entries are made.

Changing a Return in Process

If you find it necessary to change a return after you have submitted your input forms but before you receive the completed return, call the Customer Support Department, not the Telephone Rerun Department. Have the following information available:

Your ExacTax account number.

Your firm name and telephone number.

Your client's name.

The changes needed, indicating the input form, activity unit number, section and zip box number and the entry. Also, indicate a page or overflow number, if applicable.

The person authorizing the change.

The date the input forms were sent to ExacTax and the method of shipment.

If the return is located before it has been processed, the change will be made and a procedure charge will be applied. If the return has already been processed, a rerun charge will apply.

Procedure Charges In addition to those noted previously, procedure charges per procedure will apply if:

It is necessary for ExacTax to complete an input sheet because an incorrect or incomplete form was submitted. Two procedure charges will apply per form.

If a proforma input form from another return is submitted. Procedure charges for each form submitted.

ExacTax must call you for additional information on a return. Procedure charges will apply per form.

Mail is received from your office with postage due a procedure charge will apply.

If it is necessary for ExacTax to add an input sheet to complete a return. Two procedure charges will apply per form.

Procedure charges will apply if it is necessary for ExacTax to contact the preparer to complete an input sheet.

Proforma Individual Current Year Proforma for the 1040 system is scheduled to begin printing and shipping the last week of December. Proforma will be provided for all returns processed through mid-December. The initial 1040 proforma will contain federal and California information. Proforma for returns that contain states other than California will be shipped as the state proforma becomes available.

Individual Prior Year Proforma To receive proforma based on 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 or 2014 1040 returns processed after the normal proforma run, please contact the Customer Support Department to order the proforma. There is a $5.00 charge per return plus shipping for 2005, 2006, 2007, 2008 2009, 2010, 2011, 2012, 2013 or 2014 proforma.

Fiduciary and Business Calendar Year To provide input forms as early as possible, the initial Fiduciary and Business proforma will ship with the federal forms and any states that are available. Shipping is scheduled to begin in early January. Proforma of other state forms will be shipped as soon as they become available.

Fiduciary and Business for fiscal year business Proforma for fiscal year business returns is automatically run on a monthly basis.

Customer and Technical Support To maintain our goal of superior customer support, our Customer Support Department is available to answer your questions about billing, input procedures, return status, and your technical tax questions. When calling for support, use the Customer Support Hotline (844-327-6740) and have your account number ready. When calling for RDE software support, please have access to your computer.


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Billing Queries and Reminders When requesting adjustments to your billing, state the problem in the comment section of your remittance and include it with your payment. Any problems or questions regarding billing queries may also be faxed directly to the Accounting Department at 714-999-6566. Requests for credit must be made in writing.

Remittance Envelopes When sending payments in the ExacTax pre-addressed “502 – Remittance” envelopes do not include anything other than your check and invoice. Our automated mail opener will slice any other documents into several pieces.

Do not change the pre-printed address and use for other correspondence. The Post Office only reads the address that is encoded in the bar code. Because of this we have received numerous letters intended for other destinations.


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Address change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Name change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suppress printing partner numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use partnership name rather than DBA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Client Options

Include allocated depreciation with associated activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Include only trade/business depreciation on 1065, pg 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proforma Partner Sch B-1 Max Indirect percent to Next Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use section 754 for allocated depreciation description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Foreign country (20)

Providence or state

Taxing authority may discuss return with preparer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

MANDATORY

Client Properties

EIN

Partnership Information

Telephone number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amended return (Also marks all K-1's as amended) [§ 23]

1065

Name (35) . . . . . . . . . . . .D/B/A (35) . . . . . . . . . . . . .

6P1065 03 02/02/17 PARTNERSHIP

Street Address (35) . . . . .City (20) . . . . . . . . . . . . . .State . . . . . . . . . . . . . . . .Zip . . . . . . . . . . . . . . . . . .

Date business began . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yyyy)

Business code (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Initial return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Final return (Also marks all K-1's as final) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Cash, 2 = Accrual)

Extension Information

Tax year beginning Complete only if short year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)Tax year ending Defaults to 12/31/16 tax year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)

Year End Information

Oldest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)Interim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)Most recent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

Prioryear-ends,if different:

Business activity (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Product or service (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other (specify) (15) [26]

2016 1

ExacTax, Inc. 1

General footnote (74) . [§ 29]

(For detailed entries use Form Letter {2})

Letter

Prior year gross invoice amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prior payments received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Invoice amount (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Client invoice number (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For proformaed amount only

Invoices

Filing under Section 1.6081-5 (74) [§ 39]

Client number (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Data Entry go to Asset tab and follow directions to make Treatment Book same as Treatment Tax.

Check to have ExacTax make all Book depreciation the same as Tax. This change will apply to ALL assets in the return.

Book Depreciation Same As TaxAsset

Postal code . . . . . . . .Foreign country code [9]

[10]

(8865 and ELF only)

(8865 and ELF only)

(8865 and ELF only)

(8865 and ELF only)

Date employer identification number applied for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yyyy)

Technical termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Superseding return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended due date (For filing instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

[8][7]

[5][6]

[4]

[2][3]

[1]

[11][12][13][14][15][16][18][19][20][21]

[24][25]

[27]

[32][33]

[41]

[19][21][26][28]

Late Filing PenaltyDate return filed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy) [37]

[35][36]

Special processing . . . . . . . . . . . . . . . . . . . . . . . . . .[28]

[22]

[34]

Suppress late filing penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [38]

Other reason for short tax year. . [§ 40]

Default state partner special allocations to the corresponding federal special allocation . . . . . . . . . . . . . . . . . . . .

CltOptns

[8][7]

[5][6]

[4]

[2][3]


23

Form [1] - General Information

Overview

Use this form to enter general information, to calculate the late-filing penalty, and to prepare an extension for Form 1065 or Form 1065-B.

Partnership Information

Use this section to enter general information for the 1065 partnership return.

Address / City, state, zip code / Province or state / Postal code / Foreign country

Use these fields to enter the partnership's address.

To enter a domestic address, use the following fields.

1. Enter the street address in the Address field.

2. Enter the city in the City field.

3. Enter or select the state from the state drop-down list.

4. Enter the ZIP code in the zip code field.

5. Leave the Province or state, Postal code, and Foreign country fields blank.

To enter a foreign address, use the following fields.

1. Enter the street address in the Address field.

2. Enter the city in the City field.

3. Leave the state and zip code fields blank.

4. Enter the foreign province or foreign state in the Province or state field.

5. Enter the postal code in the Postal code field.

6. Enter or select the two-digit country code in the Foreign country code field. ExacTax enters the selected country in the text field. The country code is required when electronically filing the return. If you do not electronically file the return, you can enter the country name directly in the text field.

Notes

If the partner's address is in Canada, you can enter the Canadian province in the state field and the postal code in the zip code field, and leave the Province or state, Postal code, and Foreign country fields blank.

The Province or state, Postal code, and Foreign country fields are only available if the State drop-down is blank or contains . Foreign Address and the zip code field is blank.

Province or state

Enter the foreign province or foreign state of the partnership's foreign address.


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Notes

Do not use this field if the partnership has a domestic address.

Specific data entry for this field is required when filing FinCEN Form 114 and the partnership's address is in Canada. Leave this field blank if you have entered the Canadian province in the state field. Otherwise, one of the following is required.

"AB" or "Alberta"

"BC" or "Brtsh Columbia"

"MB" or "Manitoba"

"NB" or "New Brunswick"

"NL" or "Newfoundland"

"NT" or "Northwest Terr"

"NS" or "Nova Scotia"

"NU" or "Nunavut"

"ON" or "Ontario"

"PE" or "Prnc Edward Is"

"QC" or "Quebec"

"SK" or "Saskatchewan"

"YT" or "Yukon"

Final return

Enter X if this is the final return for this partnership. ExacTax also marks the Schedule K-1 for all partners as final.

If you enter X in the Final return field, ExacTax does not include this client in the list of clients to proforma in next year's version of ExacTax.

Technical termination

Enter X to indicate a technical termination. This field is available only if you entered X in the Initial return or Final return field.

Amended return

Use the field to enter the reason this return is amended. ExacTax also marks the Schedules K-1 for all partners as amended.

Notes

The field should be used only to amend Form 8865 or to amend a partnership return when the amended return is filed electronically.

To amend a partnership return when the amended return is filed on paper, use Forms Amend, Amend-2, and Amend-3 to prepare Form 1065X.


25

If you file the amended return within the filing period (including extensions), leave this field blank and instead mark the Superseding return field.

Superseding return

Enter X if this is a subsequent return filed within the filing period (including extensions). If you enter X and do not enter an explanation for an amended return and do not enter information for Form 1065X, ExacTax prints "Superseding Return" at the top of Form 1065, Page 1 and for all partners on Schedule K-1.

Taxing authority may discuss return with preparer

Enter 1 for Yes or 2 for No or select the answer from the drop-down list. ExacTax uses your answer to complete the question on Form 1065, Page 1 or Form 1065-B, Page 1.

General footnote

Use the field to enter any miscellaneous information that needs to be conveyed with the return. The General footnote appears as a separate item in each collation.

Note: Electronically filed federal returns include information from this field, as well as information from the field for the Preparer note explanation field in Form ELF or ELFFP in the electronic file.

Year End Information

ExacTax uses the fields in this section to calculate the client's depreciation.

Tax year beginning / ending

ExacTax uses these fields to complete the heading on Form 1065, Page 1 and Form 1065-B, Page 1, as well as to calculate the due date of the return and depreciation.

ExacTax automatically enters 12/31/16 in the Tax year ending field for all new returns. If this return is proforma'd, ExacTax uses the appropriate date based on last year's information.

If the client has a short tax year for the current tax period, enter the beginning date for the tax period in the Tax year beginning field. If you leave this field blank, ExacTax assumes that the tax period is a full 12 months.

To properly calculate the tax year beginning date, the tax year ending date must be the last day of the month.

Prior year-ends, if different

Use these fields only if ExacTax is calculating depreciation and the client has ever had a short tax year. ExacTax uses these fields to calculate the prior and current depreciation expense of the assets entered in the asset module. If you enter the client's assets into the Asset tab and the prior year-ends differ from the current year-end, enter the prior year-ends in these fields.

Example: A client with a current fiscal year-end of 6/30/17 has prior fiscal year-ends of 6/30/16, 3/31/16, 3/31/15, 6/30/14, and 9/30/13. Enter the following information.

Most recent Interim Oldest

3/31/16 6/30/14 9/30/13


26

Note: If this is the client's first year and the year was shorter than 12 months, enter the ending date of the month preceding the month in which the short year began in the Most recent field. For example, if the client's year began on 5/15/16 and ended on 12/31/16, enter 4/30/16.

ExacTax does not allow you to close Form 1065 until you enter these dates correctly.

Late Filing Penalty

ExacTax uses the fields in this section to enter a specific due date for the return for the filing instructions and to calculate the late filing penalty for Forms 1065 and 1065-B.

Date return filed

Enter the date the return is to be filed. ExacTax uses this date as the due date in the filing instructions. If the date the return is filed is after the due date of the return, including extensions, ExacTax calculates the late filing penalty as follows.

Form 1065: $195 for each month or part of a month (for a maximum of 12 months) multiplied by the number of partners specified on Form 1065, Page 1, Item I.

Form 1065-B:

$195 for each month or part of a month (for a maximum of 12 months) multiplied by the number of partners specified on Form 1065-B, Page 1, Item I, plus

If tax is due (regardless of when the return was required to be filed), five percent of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25 percent of the unpaid tax. If the return is more than 60 days late, the minimum penalty is the lesser of $205 or 100 percent of the tax due.

If you do not want ExacTax to calculate a penalty with the late filed return, leave this field blank or mark the Suppress late filing penalty field.

Notes

The IRS does not support electronic filing of returns with pre-computed penalties.


Use this section to enter extension information.

Filing under section 1.6081-5

Use the field to enter the reason the partnership qualifies to file under Regulations section 1.6081-5. ExacTax attaches this statement to Form 1065 or Form 1065-B and extends the due date of the return to the 15th day of the sixth month after the client year-end.

Extended due date

ExacTax assumes that the extended due date is the 15th day of the ninth month after the client year-end. To change this date, enter a different date.

Note: Use Form 8804 to prepare Form 7004 to extend Form 8804.


27

Invoices

Use this section to enter information related to invoices.

Prior year gross invoice amount

ExacTax proformas the prior-year gross invoice amount before prior payments received, discounts, or sales tax to this field. This field is for informational purposes only.

Prior payments received

Use the field to enter any prepayments made or any amounts to be credited to the invoice amount due.


28

Invoices

Amount [20]

Amount [21]

Letter

Mailing Slipsheet

1065 Client Contact InformationContact

6PCONLTR 01 10/24/16 PARTNERSHIP

Fax . . . . .

Letter Filing Instructions

Dollar discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Percent discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx)

Client invoice number (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E-mail address (Tax Matters Partner) (40)

Mobile Pager . . . .Phone number Extension

Prior year gross invoice amount (Before prior payments received, discounts, or sales tax) . . . . . . . . . . . . . . . . . . . . . .Invoice amount (Force) (Before additional invoice items, prior payments received, discounts, or sales tax) . . . . . . . . . . . . . .

Description (50)#[§ 20] Additional invoice items

Description (50)#[§ 21] Prior payments received

Date

Apply a discount of dollars OR percent to invoice:

Phone numbers:[19]Work . . . . Extension

Other: (20)

Home . . . .

Salutation (42) . . . . . . . . . . . . . . . . . . . . . . . . . . . [Dear]* Partner transmittal letter from: . . . . . . . . . . . . . . . . . . .Suppress header on partner transmittal letter . . . . . .IRS Service Center (27) . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 2

ExacTax, Inc. 2

Client number (8) . . . . . . . . . . .

For proformaed amounts only

[22][26]

[18]

[20] [21][25][23]

[27] [28]

[19]

[22]

[28]

[23][26]

[16][14][13][12]

Return address for mailing slipsheets to partners ( 1 = Firm, 2 = Partnership) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [32]Attention to whom the return should be mailed . . . . . . . . . . . . . . . . . . [33]If mailing address is different from Screen 1065:

Slipsheet name line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]Slipsheet name line2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [35]Slipsheet address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[36]Slipsheet city, state, zip code . . . . . . . . . . . . . . . . . . . . . . . . [37]

Delete on next year's proforma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [44]

[38] [39]

* Firm (default) Partnership TMP with TMP's address TMP with Partnership's address

Suppress header on partner transmittal letter . . . . . . [15]

Slipsheet province or state (8865 and ELF only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[40]Slipsheet postal code (8865 and ELF only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [41]Slipsheet foreign country (8865 and ELF only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[42] [43]

Do NotProforma

Suppress client invoice . . . . . . . . . . . . . . . . . . . . . . . . . . [27]

Authorized Signer

Name of partner signing return. . . . . . . . . . . . . . . . . . . . .Title of partner signing return (If different from "Partner" or "LLC Member") . . . . . . . . . . [2]

[1]

[3]Social security number of partner signing return (If tax matters partner is an entity). . .

Contact Information

Designation of Tax Matters Partner

Tax matters partner is not required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name (35) . . . . . . . . . . . . . . . . .Identifying number . . . . . . . . . . .

Address (35) . . . . . . . . . . . . . . .City (20) . . . . . . . . . . . . . . . . . . State ZIPForeign province or state (Electronic filing only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Postal code (Electronic filing only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Foreign country (Electronic filing only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6]

[17]

[9][11]

[15][14][13][12]

If TMP is an entity:Representative name . . . . . . . .

[7]

Phone number . . . . . . . . . . . . .

[8]

[4]

[10]

[5]Use tax matters partner selected in Partner Information {10A} (Leave section below blank) . . . . . . . . . . . . . . . .


29

Form [2] - Client Contact Information and Tax Matters Partner

Overview

Use this form to enter information for the tax matters partner, to edit additional contact information, or to enter required authorized signer information when using eSignature.

Notes

Some of the information you enter in this tab is available for inclusion in the Client Contact Information report, the 1065 Email Address List, and custom reports for Data Mining.

Name of partner signing return

Enter the name of the partner signing Form 8453-PE/-B or 8879-PE/-B when electronically filing the return or for eSignature when electronically signing the Engagement Letter, the Consent Letter, or Form 114a. If you leave this field blank, ExacTax defaults to the tax matters partner name on Form 1065, Page 3, Designation of Tax Matters Partner. The name of the partner signing the return is a required element in the electronic file, and the IRS will reject any return missing this information.

Title of partner signing return

Enter the title of the partner signing Form 8453-PE/B or 8879-PE/B. If you leave this field blank and the return is a partnership, ExacTax defaults to "Partner." If you leave this field blank and the return is a limited liability company, ExacTax defaults to "LLC Member."

Social security number of partner signing return

Enter the social security number of the partner signing the return when there is no tax matters partner or if the tax matters partner does not have a social security number. If you leave this field blank and the tax matters partner has a social security number, ExacTax defaults to the tax matters partner’s social security. The social security number will be used to validate the partner’s signature during the eSignature process when the taxpayer is electronically signing the Engagement Letter, the Consent Letter, Form 114a, or the Bank Account Verification.

Note: This field is also used in various state electronic files as the officer social security number.

Designation of Tax Matters Partner

Use this section to enter tax matters partner information.

Tax matters partner is not required

Enter X if the tax matters partner name and address entered in this form should not transfer to Form 1065, Page 3. If you mark this field, ExacTax will continue to use the tax matters partner name as the partnership's contact name or the name of the partner who signs the return in the electronic file, partner transmittal letter, and in various signature blocks, such as Forms 2848, 3115, 8716, 8821, and 8832.

Tax matters partner

If you entered X in the Use tax matters partner selected Partner Information field, ExacTax disables these fields and transfers the name, identifying number, representative name (if applicable), phone number, and address of the tax matters partner selected in Partner Data Entry to these fields. Clear the Use tax matters partner selected Partner Information field to enter information in these fields for Form 1065, Page 3.


30

Contact Information

Use this section to enter or edit additional client contact information.

Email address

Enter the email address of the tax matters partner. ExacTax uses this information in the electronic file and as the email address for electronic client communications such as the electronic client copy and the Schedule K-1 packages (when sending them to the tax matters partner (TMP)).

Transmittal Letters and Filing Instructions

Salutation

Enter the salutation you want to appear in this client's letters and emails. ExacTax provides letter and email segments that already have "Dear" in the salutation. If you use a letter or email that ExacTax provides, do not include "Dear" in the salutation you enter here.

Partner transmittal letter from

ExacTax automatically generates the partner letter from the accounting firm. Use the drop-down list to compose the partner letter from the partnership, the tax matters partner (TMP) using the TMP's address as the letter header, or the TMP using the partnership's address as the letter header.

Suppress header on partner transmittal letter

Mark this checkbox to suppress the header on the partner transmittal letter if you use pre-printed letterhead paper. If you leave this field blank, ExacTax uses the partner transmittal letter from the firm, partnership, or tax matters partner based on the selection in the Partner transmittal letter from field.

Suppress basis paragraph in partner transmittal letter

Mark this checkbox to suppress the basis paragraph in the partner transmittal letter for all partners when the basis worksheets are printing for a partner. If you suppressed the basis worksheets in Form Basis or suppressed the printing of the partner basis worksheet for a partner in the Federal tab in the Partner Information window in Partner Data Entry, the basis paragraph is automatically removed from the partner transmittal letter.

IRS Service Center

ExacTax automatically determines the appropriate IRS Service Center where the return should be mailed based on the partnership address entered in Form 1065. Enter information only if you want to override the service center. Use the drop-down list to see a list of IRS Service Centers.

Notes

If the return is marked for electronic filing in Form ELF, ExacTax enters “e-file” as the IRS Service Center for Schedule K-1, Item C.

Select the “St. Thomas, VI 00802” option if you are filing directly with the Virgin Islands Bureau of Internal Revenue, and not the United States Internal Revenue Service. When selected, ExacTax uses The Virgin Island address in the return, extension, and amended filing instructions and slipsheets.

If you do not enter an address in Form 1065 or enter a service center, ExacTax does not print an IRS Service Center address in the filing instructions.


31

Invoices

Use this section to enter information related to invoices.

Invoice number

Enter the number of the invoice you want to use.

Prior year gross invoice amount

ExacTax proformas the prior-year gross invoice amount before prior payments received, discounts, or sales tax to this field. This field is for informational purposes only.

Additional invoice items

Use the field to add additional user-defined invoice items and amounts. By default, ExacTax proformas information in the field to next year. Enter X in the Do Not Proforma column in this field to prevent the proforma of an item to next year.

Prior payments received

Use the field to enter any prepayments made or any amounts to be credited to the invoice amount due.

Apply a discount of dollars or percent to invoice: Dollar discount / Percent discount

Enter a specific invoice discount amount or percentage (xxx.xx). You can use either the amount or percentage field, but not both for the same client. Enter a 20 percent discount as 20.00. ExacTax subtotals the invoice and then applies the discount.

New referral / Referred by

Enter referral information in these fields.

Suppress client invoice

If you are preparing the invoice for this client outside of ExacTax, enter X to suppress the client invoice from printing.

Mailing Slipsheet

Use this section to enter information for use in transmittal letters, filing instructions, and invoices, and to select the return address for the partner slipsheet, enter to whose attention the return should be mailed, and enter a different mailing address for the client slipsheet.

Miscellaneous text / amount variables

There are four Miscellaneous fields: two fields for defining miscellaneous text variables and two fields for defining miscellaneous amount variables. Use these variables in transmittal letters, filing instructions, and invoices when ExacTax does not provide the desired variable. Enter the text or amounts you want to use for the miscellaneous variables in these fields. For more information about inserting the text or amount variables, see Customizing client documents: variables.

Return address for mailing slipsheets to partners

Enter 1 to generate the partner mailing slipsheet from the accounting firm or 2 to generate the partner mailing slipsheet from the partnership. If you leave this field blank and "Firm (default)" is selected in the Partner letter from field, ExacTax generates the partner mailing slipsheet from the accounting firm. Otherwise, ExacTax generates the partner mailing slipsheet from the partnership.


32

Attention to whom the return should be mailed

Enter the client contact to whom you would like the return sent. This name transfers to both the client mailing slipsheet and the client mailing label.

If mail to name and DBA are different from Form 1065

ExacTax automatically uses the client name on the client slipsheets as entered in Form 1065 for Forms 1065 and 1065-B and the filer name as entered in Form Filer if Form 8865 is filed separately. To change (force) the name information on the client slipsheet, enter the necessary information in the corresponding fields. These fields are used only on the client slipsheet and do not affect any other areas, including client documents and the tax authority slipsheets.

If mailing address is different from Form 1065

ExacTax automatically uses the client address on the client slipsheets as entered in Form 1065 for Forms 1065 and 1065-B and the filer address as entered in Form Filer if Form 8865 is filed separately. To change (force) the address information on the client slipsheet, enter the necessary information in the corresponding fields. These fields are used only on the client slipsheet; they do not affect any other areas, including client documents and the tax authority slipsheets.

Note: Select the foreign country from the drop-down list in the first Slipsheet foreign country field. ExacTax enters the selected country in the text field. The country code is not used in the client slipsheet. Alternatively, enter the country name directly in the Slipsheet foreign country text field.

Delete on next year's proforma

ExacTax automatically proformas the mail to name and mailing address entered in the If mail to name and DBA are different from Form 1065 fields and the If mailing address is different from Form 1065 fields in this form. Enter X to prevent the proforma of this information to next year.


33

Schedule B - Other Information

5 = Foreign general partnership6 = Foreign limited partnership

7 = Foreign LLC8 = Foreign LLP

1 = Domestic general partnership2 = Domestic limited partnership

3 = Domestic LLC4 = Domestic LLP

OthInfo

6POTHINF 01 01/16/17 PARTNERSHIP

[1]Type of entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[2]Other (specify) (34) . . . . . . . .Is any partner a disregarded entity, partnership, trust, S corporation, estate or nominee? . . (Force) (1 = Yes, 2 = No)

Did partnership file Form 8893 or election for partnership-level treatment for this year? . . . . . . . (1 = Yes, 2 = No)Meet all requirements for Question 6?(Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Is this partnership a publicly traded partnership? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Is the partnership required to file Form 8918 to provide information on a reportable transaction? (1 = Yes, 2 = No)

Foreign account country code . . . . . . . .

Grantor or transferor to foreign account? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Optional basis adjustment under section 743(b) or 734(b) . . . .Required basis adjustment under section 743(b) or 734(b) . . .

2016 3A

ExacTax, Inc. 3A

(Enter a country name for yes, Blank = No)

#

[§ 6] Voting stock of CorporationCountry

CodeIdentification

NumberName of Corporation (35) Percent ofOwnership

Country ofIncorporation (if not US)

Any partnership debts cancelled, forgiven, or modified to reduce principal ? . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Is the partnership making, or had previously made (and not revoked) a section 754 election? (1 = Yes, 2 = No)

Property received in a like-kind exchange was distributed or contributed to another entity . . . . . . . . . . . . . . . .Distribution of tenancy-in-common or other undivided interest in partnership property? . . . . . . (1 = Yes, 2 = No)Number of Forms 8858 attached to this return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Number of Forms 8865 attached to this return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#

[§ 5] Individual and estatesCountry

CodeIdentification

NumberName of Entity (35) Percent ofOwnership

Country ofCitizenship (if not US)

Entities owning, directly or inderectly, 50% or more of the partnership:(If different from partner data entry on Form {10A})

#

[§ 4] Corporations, partnerships, trusts and exempt organizationsIdentification


Country ofOrganization (if not US)

Partnership owned directly 20% or more or directly and indirectly 50% or more:

CountryCodeType of Entity

#

[§ 7] Interest in partnership or trustIdentification


Country ofOrganization (if not US)

CountryCodeType of Entity

[3]

[8]

[12]

[9]

[13][14]

[16][17]

[15]

[18][19]

[20][21][22]

Payment made that require Form(s) 1099 be filed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)[23][24]

Print schedules when not required? . . . . . . ( 1=Print Schedules L, M-1 and M-2, 2=Print only Schedule K-1, Item L) [10]

If yes, were or will all required Form(s) 1099 be filed ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [25]

Cost of Goods SoldAdjust purchases by change in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cost method is used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27]Method used to value inventory:

Lower of cost or market method is used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [28]Other method description . . . . . . . . . . . . . . . . . . . . . . . . . . .[29]Other method explanation [§30]

Write of "subnormal" goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [31]LIFO method adopted, statement in lieu of Form 970 . . . . . . . [32]

Closing inventory computed under LIFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[33]Rules of IRC 263A apply? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [34]Change in determining opening or closing inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [35]

Explanation of change in quantities, cost, or valuations. . . . .[36]

[37]

Were payments made that would require Form(s) 1042 or 1042-S to be filed? . . . . . . . . . . . . . (1 = Yes, 2 = No) [38]Specified domestic entity required to file Form 8938? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [39]


34

Form [3A] - Other Information

Overview

Use this form to enter Form 1065, Pages 2 and 3, Schedule B - Other information and Designation of Tax Matters Partner information and Schedule B-1, Information on Partners Owning 50% or More of the Partnership.

Schedule B - Other Information

Use this section to answer questions for Schedule B and to complete Schedule B-1.

Type of entity / Other (specify)

Select the type of entity or enter the type of entity in the Other (specify) field. If you enter codes 5 - 8, ExacTax marks the Foreign partnership field on Schedule B. Some state applications use this information to calculate the state return.

Note: ExacTax includes only the first 20 characters of the other type of entity in the electronic file for Form 1065, Schedule B, line 1f. For details about other electronic filing limitations, see Field size limitations for 1065 electronic filing.

Is any partner a disregarded entity, partnership, trust, S corporation, estate or nominee? (Force)

ExacTax automatically answers this question based on data entry in the Entity and Nominee fields in the Partner tab in the Partner Information window in Partner Data Entry. Enter 1 for Yes or 2 for No to force a different answer.

Note: Answer this question Yes if at any time during the year any partner in the partnership was a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S Corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person.

Entities owning, directly or indirectly, 50% or more of the partnership: Corporations, partnerships, trusts, exempt organizations, and foreign governments

ExacTax automatically answers Schedule B, question 3a and completes Schedule B-1, Part I based on the partner percentages on Schedule K-1, Item J and data entry in the Partner and Federal tabs in the Partner Information window in Partner Data Entry. Use the field to enter information for entities that own 50 percent or more of the partnership at the end of the tax year and are not included in Partner Data Entry. ExacTax answers Yes to Form 1065, Schedule B, question 3a and includes this information on Schedule B-1, Part I.

Notes

Enter a country if the country of organization is other than the United States. If you leave this field blank, ExacTax automatically displays "United States" in the Country of Organization field in Schedule B-1.

The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the text field.

Entities owning, directly or indirectly, 50% or more of the partnership: Individuals and estates

ExacTax automatically answers Schedule B, question 3b and completes Schedule B-1, Part II based on the partner percentages on Schedule K-1, Item J and data entry in the Partner and Federal tabs in the Partner Information window in Partner Data Entry. Use the field to enter information for individuals and estates that own 50 percent or more of the partnership at the end of the tax year and are not included in Partner Data Entry. ExacTax answers Yes to Form 1065, Schedule B, question 3b and includes this information on Schedule B-1, Part II.


35

Notes

Enter a country if the country of citizenship is other than the United States. If you leave this field blank, ExacTax automatically displays "United States" in the Country of Citizenship field in Schedule B-1.


Partnership owned directly 20% or more or directly and indirectly 50% or more: Voting stock of corporation

If the partnership owned directly 20 percent or more or owned, directly and indirectly, 50 percent or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation at the end of the tax year, use the field to enter the corporation name, identification number, country of incorporation (if not US), and percentage of ownership of voting stock. ExacTax answers Yes to Form 1065, Schedule B, question 4a. If you leave this field blank, ExacTax defaults to No.

Notes

Enter a country if the country of incorporation is other than the United States. If you leave this field blank, ExacTax automatically displays "United States" in the Country of Incorporation field in the statement to Form 1065, Schedule B, question 4a.


Partnership owned directly 20% or more or directly and indirectly 50% or more: Interest in partnership or trust

ExacTax automatically answers this question based on data entry in Form K1. If the partnership did not receive a Schedule K-1, use the field to enter the name of the entity, identification number, type of entity, country of organization (if not US), and percentage of ownership for interest in a partnership or trust at the end of the tax year. ExacTax answers Yes to Form 1065, Schedule B, question 4b.

Notes

Enter a country if the country of organization is other than the United States. If you leave this field blank, ExacTax automatically displays "United States" in the Country of Organization field in the statement to Form 1065, Schedule B, question 4b.


Meet all requirements for Question 6 (Force)?

If the requirements for Schedule B, question 6 are met, ExacTax answers Yes to question 6 and does not complete Form 1065, Total assets or Schedules L, M-1, M-2, and K-1, Partner's capital account analysis. Enter 1 for Yes or 2 for No to force a different answer.

Note: The partnership must satisfy all of the following conditions in order to meet the requirements for Question 6.

Partnership's total receipts for the tax year were less than $250,000.

Partnership's total assets at the end of the tax year were less than $1 million.


36

Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.

The partnership is not filing and is not required to file Schedule M-3.

Use the If yes, print schedules when not required field to complete these items when the answer to question 6 is Yes.

Print schedules when not required?

If Schedule B, question 6 is Yes, ExacTax does not complete Form 1065, Total assets or Schedules L, M-1, M-2, and K-1, Partner's capital account analysis. Enter 1 in this field if you want ExacTax to complete these items when the answer to question 6 is Yes. Enter 2 in this field if you want ExacTax to complete only Schedule K-1, Partner's capital account analysis when the answer to question 6 is Yes.

Foreign account countries

Use the field to list the name of any foreign country in which the partner has an interest or a signature or other authority over a financial account. The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the Country Name field. ExacTax answers Yes to Form 1065, Schedule B, question 10. If you leave this field blank, ExacTax defaults to No.

Optional basis adjustment under section 743(b) or 734(b)

If the partnership is making an optional basis adjustment under IRC section 743(b) or 734(b), use the field to provide the computation and allocation of the adjustment. ExacTax answers Yes to Form 1065, Schedule B, question 12b. If you leave this field blank, ExacTax defaults to No.

Required basis adjustment under section 743(b) or 734(b)

If the partnership is required to adjust the basis of partnership assets under IRC section 743(b) or 734(b) because of a substantial built-in loss, use the field to provide the computation and allocation of the adjustment. ExacTax answers Yes to Form 1065, Schedule B, question 12c. If you leave this field blank, ExacTax defaults to No.

Property received in a like-kind exchange was distributed or contributed to another entity

Mark this checkbox if the partnership distributed any property received in a like-kind exchange or contributed such property to another entity during the current or prior tax year.

Cost of Goods Sold

Use this section to enter cost of goods sold information.

Adjust purchases by change in inventory

Enter X in this field to automatically adjust the amount of purchases displayed on Form 1125-A by the difference between beginning and ending inventory. A positive adjustment is made to purchases when ending inventory is greater than beginning inventory. ExacTax makes a negative adjustment to purchases when ending inventory is less than beginning inventory, but does not allow purchases to go below zero.

Method used to value inventory

Mark the appropriate field(s) to indicate the methods used in valuing closing inventory on Form 1125-A. To mark the Other checkbox on Form 1125-A, enter the description and the explanation of the method in the Other method description and the Other method explanation fields.


37

LIFO method adopted, statement in lieu of Form 970

Use the field to enter the same information requested on Form 970 if the LIFO method of inventory is adopted and Form 970 is not being filed. If you enter information in this field, ExacTax marks Form 1125-A, line 9c.


38

Suspended Losses

Partner Basis

6PBASIS 01 10/25/16 PARTNERSHIP

2016 3B

ExacTax, Inc. 3B

Basis[1]Suppress calculation of partner basis worksheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[2]Suppress K1 supplemental detail of distributions in excess of basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depletion (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Contributed capital – property (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Excess depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nondeductible expense . . . . . . . . . .

Ordinary loss . . . . . . . . . . . . . . . . . .Rental real estate . . . . . . . . . . . . . . .Other rental activities . . . . . . . . . . . .Royalties . . . . . . . . . . . . . . . . . . . . . .Short-term capital loss . . . . . . . . . . .Long-term capital loss . . . . . . . . . . .

Other portfolio loss . . . . . . . . . .Section 1231 loss . . . . . . . . . .Other losses . . . . . . . . . . . . . . .

Charitable contributions . . . . . . . . . .

Section 179 expense . . . . . . . .Portfolio income deductions . .Other deductions . . . . . . . . . . .Investment interest expense . .

Foreign tax . . . . . . . . . . . . . . . . . . . .

Section 59e expenditures . . . . .

[58][60]

[40]

[45][47][49][51][53][55]

[59][61]

[48]

[72] [73]

[62][64][66][68]

[42]

[70]

[63][65][67][69][50][71]

PtrAlloc

Suppress data share of partner basis information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3]

Data share beginning of year basis and prior year suspended losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4]

Loss on disposition ofsection 179 assets . . . . . . . . . .

PtrAlloc

PtrAlloc

Other increases . . . . . . . [15]

Other decreases . . . . . . .[39]

Property distributions (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gain (loss) on disposition of Section 179 assets (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Partner Basis

Transfer of capital (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[5][7][9]

[11][13]

[6][8]

[10][12][14]

[16]

[35]

[17]

[36]Charitable contributions (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nonrecourse liabilities . . . . . . . . . . . . . . . . .Qualified nonrecourse liabilities . . . . . . . . . .

[19][22]

[20][23][26]

[29][31]

[30][32][34]

Prior Year Current Year

[25][33]

Share of partnership liabilities (Force):

Recourse liabilities . . . . . . . . . . . . . . . . . . . .

Increase and Decrease

[57][74] [75]

Outside basis depreciation adjustment(Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[37] [38]

[27] [28]

[54][56]

[52]

[46][44]

[41][43]

Depletion . . . . . . . . . . . . . . . . . [76] [77]

(Force)


39

Form [3B] - Partner Basis

Overview

Use this form to enter partner basis and suspended loss information.

General Information

Use this section to select various options for calculating the basis worksheet and sharing information to ExacTax/1040.

Suppress calculation of partner basis worksheets

Enter X to suppress the calculation of partner basis for all partners, which will also prevent any basis information from being proforma'd to next year's version of ExacTax.

Suppress K1 supplemental detail of distributions in excess of basis

ExacTax follows IRC section 705, which states that a partner's basis cannot decrease below zero. When distributions or changes in a partner's liabilities would decrease the basis below zero, a deemed distribution must be made to restore the basis to zero. ExacTax automatically calculates and reports this adjustment on the Partner Basis Worksheet, Distribution in excess of partner basis line and on Schedule K-1, box 20, Other information. Enter X to suppress the Schedule K-1 supplemental detail for distributions in excess of basis.

Suppress data share of partner basis information

Enter X to suppress the data share of partner basis information to ExacTax/1040.

Increases and Decreases

Use this section to enter current-year partner basis information.

Beginning of year

Enter the beginning of year partner basis, including 0 (zero). This amount must be allocated to each partner in the Ptr Alloc button using the absolute dollar scheme.

Capital contributions - property (Force)

ExacTax calculates the amount of the partner's contributed capital using data entered in the Capital contributions: Property field in Form M1M2 and data entered in the Transfers of Capital window in Partner Data Entry if the capital account adjustment is Property contributions. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.

Transfer of capital (Force)

ExacTax calculates the transfer of capital for the basis worksheet using data entered in the Transfers of Capital window in Partner Data Entry if the capital account adjustment is Sch M-2 — Other increases or Sch M-2 — Other decreases. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.

Gain (loss) on disposition of section 179 assets (Force)

ExacTax calculates the gain or loss on disposition of section 179 assets from information entered in Forms 8824PT, SalePT, and K1Sale. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.


40

Other increases / decreases

Use the fields to enter the description and amount for items that increase or decrease partner basis.

Notes

Generally, ExacTax limits the amount of available basis before losses and decreases in liabilities. When distributions or changes in liabilities would decrease the basis below zero, ExacTax automatically calculates a deemed distribution under IRC section 705 and reports the adjustment on the Partner Basis Worksheet, Distribution in excess of partner basis line and on Schedule K-1, Other information.

ExacTax does not limit the amount entered in the Other decreases field by the available basis. Therefore, the amounts entered in this statement may cause a partner’s basis to be reduced below zero. To avoid this, enter the limited amount in the statement.

Distributions - property (Force)

ExacTax calculates the amount of the partner’s property distributions using data entered in the Distributions subject to section 737 field and the Property distributions field in Form M1M2 and in the Transfers of Capital window in Partner Data Entry if the capital account adjustment is Property distributions. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.

Share of partnership liabilities (Force)

To determine the liabilities used in the calculation of the increase (decrease) in the partner's share of liabilities, ExacTax uses the liabilities reported on Schedule K-1, Item K, Partner's share of liabilities at year end. The prior-year value is proforma'd from 2015 ExacTax. Enter an amount, including 0 (zero), in any of these fields to force the prior-year or current-year partnership liabilities. ExacTax calculates the increase (decrease) in a partner's share of liabilities by subtracting the prior-year value from the current-year value of a partner's share of all nonrecourse, qualified nonrecourse, and recourse liabilities.

Notes

The prior-year value of partnership liabilities cannot be determined for new or converted clients. Use the prior-year fields to enter the prior-year liabilities from last year's Schedule K-1, Item K.

ExacTax allocates qualified nonrecourse and recourse liabilities according to the loss percentages.

If you leave the Section 752 information not provided checkbox in the Federal tab in the Partner Information window in Partner Data Entry blank, ExacTax adjusts each partner's increase (decrease) in liabilities for the remaining deferred IRC section 752 distributions from IRC section 108(i) elections entered in Form CODI.

Charitable contributions (Force)

ExacTax decreases partner basis using the fair market value of charitable contributions entered in Forms 1098C, 8283P1, 8283P2, K2, and K1-2. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.

Outside basis depreciation adjustment (Force)

ExacTax calculates the outside basis depreciation adjustment included in other deductions using assets entered in the asset module when the Tracking partner's outside basis (1065 only) checkbox in the Other tab is marked and the asset has been specially allocated to partners. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.


41

Depletion (Force)

ExacTax calculates the amount of depletion from data entered in Forms OGCost and OGWell. Enter an amount, including 0 (zero), to force an amount that is different from the calculated amount.

Suspended Losses

Use this section to enter prior-year suspended losses. ExacTax combines the current-year losses and deductions with the prior-year suspended loss amounts to determine the amount that is allowable in the current year, based on the available partner basis.

Nondeductible noncapital expenses / … / Depletion

Enter the prior-year suspended loss for each item. ExacTax proformas this information based on information on the prior year’s Partner Basis Worksheet, Page 2. To determine the current-year allowable losses and deductions, ExacTax combines the prior-year suspended losses with the current-year losses and deductions from the return and then compares that amount to the partner’s available basis. Available basis is applied first to nondeductible noncapital expenses. Any remaining basis is then applied to all other losses and deductions. The amount of allowed loss is calculated by multiplying the available basis by a fraction, where the numerator is equal to the total loss amount (current year plus suspended amount) for a deductible item and the denominator is the sum of the total loss amount for all deductible loss items.


42

Electronic Filing - General Information

6PELF 01 10/21/16

ELF

[1]File this return electronically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Signature date (Mandatory) . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

42016

ExacTax, Inc. 4PARTNERSHIP

[10]Name control field (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Force

Suppress the creation of:

State electronic file when only filing the federal return/extension electronically . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparer note explanation[§ 2]

Personal Identification Number (PIN) Information

PIN authorization indicator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2 = ERO entered Taxpayer PIN)

Note: These fields are mandatory if using the Practitioner PIN option. The IRS will reject any returns that contain missing or incorrect PIN information. To useForms 8453-PE or 8453-B, leave this section blank.

ERO PIN (Enter five numbers, other than all zeroes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxpayer PIN (Enter five numbers, other than all zeroes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[3]

[11]

[12]

[13]

Name of financial instituition . . . . . . . . . . . . . . . . . . . . . . . .

Type of account . . . . . . . . . . . . .(1 = Checking, 2 = Savings)

Account Information

Depositor account number . . . . . . . . . . . . . . . . . . . . . . . . . .

Routing Transit number . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[1]

[2]

[3]

[4]

Account is located outside of the United States . . . . . . . . . . [5]

Bank

Payment Information

For use with electronically filed federal Form 1065-B returms with a balance due.

Use Section Bank below to enter account information.

Payment method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = EFTPS, 2 = EFW direct debit)

Form1065-B requested payment date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[16]

[17]

[7]

Federal electronic file when only filing a state return or extension electronically . . . . . . . . . . . . . . . . . . . . . . . .

Signature date of electronic return originator (ERO), if different. . . . . . . . [4]

Signed form 8453/8879 has been received (For filling instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [5]

[8]


43

Form [4] - Electronic Filing

Overview

Use this form to electronically file Form 1065 or Form 1065-B and its related forms and schedules.

General Information

Use this section to provide information when filing the return electronically.

File this return electronically

Enter X to file Form 1065 or Form 1065-B returns electronically. If you do not enter X, ExacTax does not prepare an electronic return.

Preparer note explanation

The electronically filed federal return includes information from this field, as well as information from the General footnote field in Form 1065 in the electronic file. Preparer notes can be used to provide additional voluntary information related to the tax return but not required to be attached to the return.

Signature date of partner signing return

Enter the date the electronic return is signed by the partner. This field is mandatory. The IRS will reject any return without a signature date for the partner.

Notes

ExacTax automatically transfers the date entered in the Signature date for Form 8879 field in the File > Print Returns dialog (the second field to the right of the Create electronic file checkbox) to this field.

Signature date of electronic return originator (ERO), if different

Signed Form 8453/8879 has been received

Enter X if you have received a signed federal Form 8453-PE/-B or 8879-PE/-B. ExacTax uses this information to determine what information appears in the filing instructions. ExacTax automatically transfers the selection entered in this field to the Signature Document field in the Utilities > Electronic Filing Status dialog, and the option selected in the Electronic Filing Status dialog transfers to this field.

Note: ExacTax suppresses the printing of Form 8453-PE/-B or 8879-PE/-B if you have received a signed copy of the form. Mark the Always print Form 8879 (etc.), regardless of signature status checkbox in the Setup > Office Configuration > Print Options tab to print Form 8453-PE/-B or 8879-PE/-B regardless of the selection in this field.

Email notification when electronic file is accepted by taxing agency

Enter 1 to send email notifications when an electronically filed return for the client is accepted by the various taxing agencies, 2 to send email notifications when an electronically filed return or extension for the client is accepted by the various taxing agencies, or leave this field blank if you do not want to send email notifications. ExacTax sends the email notifications to the email address in the Email address field in Form Contact. The selection entered in this field automatically transfers to the Setup > Client Communications dialog, and the option selected in the Email ELF Ack field in the Client Communications dialog transfers to this field.


44

Note: Use the When field in the Automatically assign Email ELF Ack group box in the Setup > Client Communications > ELF / eSign Options dialog to select Always for all clients, to select Email address entered for clients only with an email address, or to select Never for all clients.

Suppress the creation of: State electronic files when only filing the FinCEN 114 or federal partnership return or extension electronically

If you enter X, ExacTax creates only the FinCEN 114 and federal partnership return electronic file for this client and suppresses creation of all state electronic files.

Suppress the creation of: Federal partnership electronic files when only filing the FinCEN 114 or a state return or extension electronically

If you enter X, ExacTax creates only the FinCEN 114 or state electronic file for this client and suppresses creation of the federal partnership return electronic file.

Note: To suppress the FinCEN 114 electronic file, see Form 114.

Name control

ExacTax automatically generates the name control for the electronic file based on information you enter in the Name field in Form 1065 using the guidelines in Publication 4163 and prints the text in this form. The IRS determines the name control differently depending on how the Employer Identification Number (EIN) of the partnership was obtained; therefore, you should review name control text for correctness with the IRS before you submit the electronic file. Use the Force field to override the calculated value.

Note: The name control that the IRS determines could be based on any of the following: the first partner's last name in a list of partners at the time the Form SS-4 was completed, a name change from a previous year, or the doing business as name.

Personal Identification Number (PIN) Information

Use this section if the Practitioner PIN option is used to electronically sign the return. This will generate Form 8879-PE/-B. Leave this section blank if the scanned Form 8453-PE/-B signature option is used.

Note: The IRS does not support the self-select PIN method (available on 1040 returns) for partnership returns.

PIN authorization indicator

This field is required only if you use the Practitioner Personal Identification Number (PIN) option to electronically sign the return. Enter 1 if the taxpayer will enter the PIN or 2 if the taxpayer authorized the Electronic Return Originator (ERO) to enter the taxpayer PIN. If you leave this field blank, and you enter a PIN number in the Taxpayer PIN field, ExacTax defaults the PIN authorization to Taxpayer entered PIN.

Taxpayer PIN

This field is required only if you use the Practitioner Personal Identification Number (PIN) option to electronically sign the return. Enter the taxpayer's self-selected PIN. Enter any five digits except 00000.

Notes

The taxpayer must personally enter the PIN if the taxpayer uses the Practitioner PIN option. If the ERO receives permission to enter the PIN for the taxpayer, the taxpayer must first sign Form 8879-PE/-B, IRS e-file Signature Authorization. The ERO must retain the signed Form 8879-PE/-B.


45

The PIN does not proforma from year to year because the entering of the PIN is the equivalent of an electronic "signature." This is in accordance with the IRS procedural steps that participating PIN program practitioners must follow.

ERO PIN

This field is required only if you use the Practitioner Personal Identification Number (PIN) option to electronically sign the return. Enter the Preparer PIN, which is a self-selected set of five numbers. Enter any five digits except 00000. The actual Electronic Return Originator (ERO) PIN is an 11-digit number. ExacTax combines the six-digit IRS-assigned Electronic Filing Identification Number (EFIN) and the five-digit self-selected PIN to determine the ERO PIN.

Notes

The PIN does not proforma from year to year because the entering of the PIN is the equivalent of an electronic "signature." This is in accordance with the IRS procedural steps that participating PIN program practitioners must follow.

ExacTax automatically transfers the PIN entered in the ERO PIN for Form 8879 field (to the right of the Create electronic file checkbox) in the File > Print Returns dialog to this field.

Print Form 8879-PE/8879-B

Enter X to print Form 8879-PE/-B, IRS e-file Signature Authorization, and include the PIN information in the filing instructions prior to creating the electronic file. If you enter X, you can print Form 8879-PE/-B without completing the PIN information or the Signature date of partner signing return field.

Notes

The Signature date of partner signing return field is a mandatory field and must be completed prior to creating the electronic file. If the Practitioner PIN method is used to sign the return electronically, the PIN fields must also be completed. You must review the diagnostics before you create the electronic file.

ExacTax automatically transfers X to this field if a PIN is entered in the ERO PIN for Form 8879 field (to the right of the Create electronic file checkbox) in the File > Print Returns dialog and if the Taxpayer PIN field in this form is blank.

Account Information

Use this section to enter bank information for various state versions of ExacTax, to complete the Bank Account Verification worksheet, and to pay a balance due when electronically filing Form 1065-B or Form 7004 and paying with electronic funds withdrawal (EFW).

Account is located outside of the United States

Enter X if the account is located outside of the United States or its territories. Various state taxing authorities do not support accounts located outside the United States.

Note: ExacTax does not include this field in the federal electronic file.


46

1 = Basis AICPA Compilation Letter (Default for accrual basis entity)2 = Modified AICPA Compilation Letter3 = AICPA Limited Review Letter4 = Modified AICPA Limited Review Letter5 = Cash Basis Letter (Default for cash basis entity)6 = Modified Cash Basis Letter

Financial Statement Forces (Overrides)

Adjust cash flow statement to balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Omit percentages from the income statement portion of the financial statement . . . . . . . . . . . . . . . . . . . . . . . . . .Omit firm name from the financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FS-P 1065 Financial Statements

6PFINST 01 10/24/16 PARTNERSHIP

Produce financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Annual, 2 = Interim)[2]State and federal income taxes are to be shown as general and administrative expenses . . . . . . . . . . . . . . . . . .

Total acquisitions of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Date for compilation letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)Number of additional copies of financial statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[10]

Type of letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prepare statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance sheet to print on one page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Do not bind financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use bound format for cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Print both lines of the entity name in the headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use singular references (I, me, etc.) in place of plural references (we, us, etc.) in letter . . . . . . . . . . . . . . . . . . .

2016 8

ExacTax, Inc. 8

[21][20] Income from Pass-thru entitiesSales of Assets

7 = Accountant Supplied Letter8 = No Letter to be produced9 = Income Tax Basis Letter

10 = Modified Income Tax Basis Letter11 = Letter with all CPA references removed

[23]Contributions

Enter the book amounts for the following items if they are included in this return. The tax return amounts will not be asseumed.

[22]Health Insurance

[83]Reserved[82]Rounding Adjustment[81]Accounts Payable[80]Cash

[1]

[4][3]

[6][5]

[8][7]

[9]

[11]

[14][13][12]

[15]


47

Form [8] - Financial Statement

#1 Produce Financial Statements Enter code “1” to produce Annual or code “2” for Interim financial statements

#3 Omit Percentages The system will automatically show all items on the Income Statement expressed as a percentage showing their relationship to gross sales. To suppress the printing of these percentages, check this box.

#4 Omit Firm Name Check here to omit your identifying information from the Financial Statement and the compilation or review letter.

#5 Statement of Cash Flows Check here to produce a Cash Flow Statement in addition to the basic Financial Statement package. Caution: The Cash Flow Statement is highly sensitive to abnormalities in accounting. It would not make sense to request this document if you are force balancing the return, preparing a return without balance sheets, submitting an out-of- balance return, or have anything on your return which is not in accordance with generally accepted accounting principles. If you cannot balance your Cash Flow Statement, an adjusting entry can be made in Code Box 238.

#7 Acquisitions of Fixed Assets An entry would be made here only if you are requesting the Cash Flow Statement (See Code box 5). The system automatically looks to the Input Form 50 and 51 to determine which assets were acquired in the current year. You must make an entry here if:

You are submitting an uncompleted Input Form 50 and 51(One with totals but no detail).

There is any reason that the computer cannot ascertain the correct answer for current year acquisitions.

#8 Date for Compilation Letter The system will automatically the Financial Statements as of the processing date. An alternative entry here will override the computer.

#9 Number of Additional Copies You will automatically receive two copies of the Financial Statement. (one will be bound, one unbound.) Enter here the number of additional copies required in addition to the basic package.

#10 One Page Balance Sheet The system default is to print the assets on one page followed by the liabilities and owner's equity on the next page. If a check is entered here, the system will to print both the asset and liabilities and owner's equity on one page. If there is insufficient room to accomplish this, the system will use to the system default.

#11 Do Not Bind Financial Statement Batch and RDE users: When financial statements are requested, you will receive two copies. One copy will be bound. The other will be unbound. To receive both copies unbound, check this box.

List Partners Names and Capital Accounts on Balance Sheet Checking this box will detail the ownership of capital to each partner. This box will have no effect on Corporation or S Corporation financial statements.

#13 Include Both Lines of Entity Name Checking this Code Box will cause the system to print both lines of the entity name (see Form PR, Code Boxes 44 and 46) in the heading for the financial statement. The system default is to print only the first line (Form PR Code Box 44) of the name in the heading.

#15 Compilation Letter Enter from among the following for the compilation or review letter to be printed with the Financial Statement.


48

Election StatementsElect

6PELECT 01 10/24/16 PARTNERSHIP

Election Number

Overflow # 2016 9

ExacTax, Inc. 2

[12]

[22][20]

[8]

[18]

[6]

[16]

[4]

[14]

Amount [1]Description of Expense (36)#[§ 1 ] Election to capitalize carrying charges (Section 266)

Date Paid/Incurred

Out of 50% Bonus Depreciation87 = All 88 = 3 Yr 89 = 5 Yr90 = 7 Yr 91 = 10 Yr 92 = 15 Yr93 = 20 Yr 94 = 25 Yr 95 = 27.5 Yr96 = 39 Yr 97 = IRC 167

29 = Self-charged interest30 = Recurring Items31 = Farm Crop Insurance Deferral32 = Throwback of Disaster Loss35 = Market to Market36 = Elect out of Sub K Provisions37 = Elect Capitalize Starp-up costs38 = Elect to Capitalize Organization costs56 = De Minimis Safe Harbor57 = Safe Harbor Election - Small Taxpayers58 = Capitalize Repair & Maint Costs

1 = 1065 Consolidated Audit Procedure2 = Section 754 Election3 = Amortize Bond Premium4 = Carrying Charges5 = Sec 351 Stmt of Disclosure7 = Depreciation-ADS26 = Farm CCC Loans27 = Mutual Funds Avg Basis-Double28 = Mutual Funds Avg Basis-Single

Depreciation - DB8 = 3 Yr 9 = 5 Yr 10 = 7 Yr11 = 10 Yr 12 = 15 Yr 13 = 20 Yr14 = 39 Yr 15 = All 16 = DB to SL17 = Excl from MACRS

Depreciation - Straight-Line18 = 3 Yr 19 = 5 Yr 20 = 7 Yr21 = 10 Yr 22 = 15 Yr 23 = 20 Yr24 = 39 Yr 25 = All

Name of Transferee Corp (36)#[§ 2 ] Election to disclose asset transfers by transfer (Section 551)

Transferee Corp EIN Date Assets Transferred FMV of Property Transferred

Basis of Property Transferred Date of IRS Private LTR Ruling Ctrl No. of IRS Private Ltr Ruling

[10]

[§ 3 ] Election to deduct the cost of improvements made to eligible building property (Regulation 1.263(a)-3(h))


49

Form [9] - Elections

Overview

Use this form to enter client-specific election information for select elections and to attach election statements to the client's return.

Use the Document Editing window to create and modify all client documents, including transmittal letters, filing instructions, and invoices.

Detailed Information

Use this section to enter client-specific election information to capitalize carrying charges and to disclose asset transfers, and to deduct the cost of improvements made to eligible building property.

Election to capitalize carrying charges

Use the field to elect to capitalize carrying charges under IRC section 266. ExacTax automatically prints the tax election with the return. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you use this field to make the election, do not select election #4, Carrying Charges, in the Election Statements section.

Election to disclose asset transfers by transferor

Use the field to elect to disclose IRC section 351 asset transfers by transferor. ExacTax automatically prints the tax election with the return. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you use this field to make the election, do not select election #5, Sec. 351 Stmt of Disclosure, in the Election Statements section.

Election to deduct the cost of improvements made to eligible building property

Use the field to enter a description of each eligible building property to which the election applies. ExacTax automatically prints the tax election with the return. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Notes

If you use this field to make the election, do not select election #57, Safe Harbor Election for Small Taxpayers, in the Election Statements section.

ExacTax proformas the information in this field from the prior year. If the election does not apply in the current year, delete the information from the field.

Election Statements

Number

Enter the number that corresponds to the election statement required for this client or use the drop-down list to make your selection. ExacTax prints up to 10 election statements with the client's return.

Note: If you entered client-specific election information in Form 4835, Form F, or the Detailed Information section in this form, do not select the elections here.


50

Federal Schedule B-1 informationIndirect pct for max profit, loss or capital Country code (if not US): Report entity as corporationSchedule M-3 informationReportable entity partner Maximum deemed ownership percentage:Form 8805 information

Foreign country code Account number:Partnership income is exempt from US tax? De minimis partner certificate on file?Section 108(i) election informationSection 752 information not provided

BasisSuppress printing of basis worksheet

.Profit Percentage Loss Percentage Ownership of Capital Beginning Capital (US) Beginning Capital (SID)

. .

Information

SSN / EINLast name (20)

Address 1 (35)

Address 2 (35)

City (20)

Resident stateState Zip

First

Partner Type **Entity*Other information

Active Final K-1

Tax Matters Partner Rounding Partnerif:

Partner # Information

Foreign

Transmittal letter: Salutation (42)

Postal code:

(Enter number with dashes) LLC member managerNominee

ELF information Province or state Country code: Partners letter - Spanish

(Individuals only)

TMP Telephone

Partner Information

6PPTNRS 01 10/25/16 PARTNERSHIP

** Partner types:General PartnerLimited Partner (Default)LLC Member (No SE)LLC Member (SE Income)LLC Member (SE on Services)

* Entity types:Individual (Default)CorporationS CorporationPartnershipTrust

Grantor (Subject to SE)EstateExempt OrganizationIRADisregarded EntityForeign Gov't

10A

10AOverflow # 2016

ExacTax, Inc.

Foreign country code Email addressForeign country

California informationExclude from nonresident withholding Withhold on resident when not requiredWithhold tax when CA distributions are less than $1500 UnitaryEntity type ***CA corporation number: CA Secretary of State number:LLC Only: Nonconsenting nonresident member Sold or transferred ownership interest during year

*** Entity types:Federal (Default)IndividualS CorporationEstate/Trust

CorporationGeneral PartnershipLimited PartnershipLLPLLC

IRA/Keogh/SEPExempt OrganizationDisregarded Entity

(xxx.xx)

(xxx.xx)

Federal Schedule B-1 informationIndirect pct for max profit, loss or capital Country code (if not US): Report entity as corporationSchedule M-3 informationReportable entity partner Maximum deemed ownership percentage:Form 8805 information

Foreign country code Account number:Partnership income is exempt from US tax? De minimis partner certificate on file?Section 108(i) election informationSection 752 information not provided

BasisSuppress printing of basis worksheet

.Profit Percentage Loss Percentage Ownership of Capital Beginning Capital (US) Beginning Capital (SID)

. .

Information

SSN / EINLast name (20)

Address 1 (35)

Address 2 (35)

City (20)

Resident stateState Zip

First

Partner Type **Entity*Other information

Active Final K-1

Tax Matters Partner Rounding Partnerif:

Partner # Information

Foreign

Transmittal letter: Salutation (42)

Postal code:

(Enter number with dashes) LLC member managerNominee

ELF information Province or state Country code: Partners letter - Spanish

(Individuals only)

TMP Telephone

Foreign country code Email addressForeign country

California informationExclude from nonresident withholding Withhold on resident when not requiredWithhold tax when CA distributions are less than $1500 UnitaryEntity type ***CA corporation number: CA Secretary of State number:LLC Only: Nonconsenting nonresident member Sold or transferred ownership interest during year

(xxx.xx)

(xxx.xx)


51

Partner #

(1065)

Partner #Partner #Partner #Partner #Partner #


POSTAL CODE

Partner #

Other State Nonresident Partners Information - (1065)

California Nonresident Partners Information - (1065)

Partner #

Partner #

Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #

Partner #Partner #

Exempt from nonresident withhholding

Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #

Partner #Partner #


Partner #Partner #


Partner #Partner #


Partner #

Partner #


Partner #

Partner #

Nonresident Partners State Information

6PNRINFO 01 10/25/16

Exempt from nonresident withhholding

PARTNERSHIP

Note: Complete this form if you have any nonresident partner(s) that are NOT subject to the Nonresident back up withholding.

Enter the nonresident partner(s) number only; no other entry is necessary.

10B

10B2016

ExacTax, Inc.

Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #Partner #

Partner #

Partner #


Partner #

Partner #


Partner #


Partner #Partner #

Partner #Partner #

Partner #Partner #

Partner #Partner # Partner #

Partner #Partner #

Partner #Partner #

Partner #Partner #

Partner #Partner #

Partner #Partner #

Partner #Partner #

(Nonresident Partners)


52

Form [10A] and [10B] - Partner Information

Overview Use the Partner input to enter information for Form 1065, for each partner’s Schedule K-1, and for the partner transmittal letters. Enter general partner information such as name and address. UltraTax CS uses this information to complete both the federal and state returns.

General Information

Entity

Enter the partner’s entity directly or select one from the drop-down list for this field. UltraTax CS uses Individual as the default for the partner entity type.

Nominee

Mark this checkbox to indicate that the partner is a nominee. UltraTax CS uses the information, along with the information in the Entity field for the partner’s entity type on Schedule K-1, Item I.

SSN/EIN

Enter the partner’s SSN or EIN. If the partner has applied for but not yet received a number, enter A for the text "Applied For" to print. If you enter a number without any hyphens, the default is to hyphenate in SSN format. To enter an EIN, manually insert the hyphen in the proper position, such as xx-xxxxxxx.

Note: If electronically filing and the partner does not have a SSN or EIN because they are foreign, enter F for the text "ForeignUS" to be used in the electronic file.

Name and address fields

Enter the partner’s name and address information in these fields. If the partner is not an individual, enter the partner’s name in the Last name field only.

Notes

If the partner is not an individual, the First field will be removed.

In the State field, enter the partner’s state postal code directly or choose an option from the drop-down list for the field.

In the Resident state at year end field, select the postal code from the drop-down list if the state of residency is different than the partner’s address. Information entered in the Resident state at year end field is used by the state, city, and other returns. UltraTax CS automatically enters the postal code you entered in the State field into the Resident state at year end field. If you leave the Resident state at year end field blank, UltraTax CS assumes that the partner is a resident of the state you entered in the State field.

If you are preparing an electronic return and the partner has a foreign address, see How do I enter foreign partner information.

ELF information

Foreign address fields

Enter the partner’s foreign address information in these fields. For more information on how to enter a foreign address, see How do I enter foreign partner information.

Other information

Type

Enter the type of partner or select one from the drop-down list. UltraTax CS defaults to Limited Partner for the partner type.

Notes

General Partner and LLC Member (SE Income) calculate self-employment earnings for all applicable items as a general partner.

Limited Partner and LLC Member (SE on services) calculate self-employment earnings on services only. Enter the amount of guaranteed payments for services on Screen K-3 in the Sch K folder. The amount you enter will be allocated to all partners based on their profit percentage. Use the Ptr Alloc button to allocate this amount to the appropriate partners.


53

LLC Member (No SE) will not calculate self-employment earnings.

LLC member manager

Mark this checkbox if the partner is an LLC member-manager. This field is available only if the Type field indicates that the member is an LLC member.

Active

Mark this checkbox to indicate that this is an active partner for purposes of the Analysis of Net Income (Loss).

Final K-1

Mark this checkbox if this is the partner’s final K-1.

Note: If the Final return field in Screen 1065 has been selected, UltraTax CS automatically marks the Schedule K-1 checkbox for all partners.

Foreign

Mark this checkbox if the partner is a foreign partner. Enter information for Forms 8804 and 8805 in the Federal tab.

Tax matters partner

Mark this checkbox if this partner is the partnership’s tax matters person. If you mark this checkbox, UltraTax CS automatically transfers the information you enter in the name and address fields to the Designation of Tax Matters Partner section on Form 1065, Page 2.

Rounding partner

Mark this checkbox if the partner is designated as the rounding partner. When this checkbox is marked, UltraTax CS allocates all rounding adjustments to this partner.

Note: UltraTax CS allows only one rounding partner for the partnership.

Transmittal letter

Salutation Enter a unique salutation for the partner in this field; for example, the partner’s first name. The transmittal letter already includes "Dear" in the salutation, so do not enter "Dear" in this field.

Partner is a 1040 client

Mark this checkbox to automatically change the transmittal letter for a partner for whom you prepare an individual 1040 return to include text reminding the partner that you have retained a copy of their return and to call for an appointment to begin preparation. If this checkbox is not marked, UltraTax CS prepares the standard transmittal letter for partners.

Schedule B-1 information group box

Indirect percent for maximum profit, loss, or capital

Enter the indirect percentage for the maximum percentage owned in profit, loss, or capital. UltraTax CS adds the percentage you enter in this field to the highest of the partner's profit, loss, or ownership capital percentages on the partner's Schedule K-1, item J. If the partner has a combined interest of 50 percent or more, UltraTax CS answers yes to Form 1065, Schedule B, line 3a or 3b and transfers the partner information to Schedule B-1.

Country (if not US)

If the partner has a combined interest of 50 percent or more, enter the country of organization for corporate, partnership, trust, exempt organization, foreign government, and disregarded entity partners (if the Report entity as corporation field is marked) or the country of citizenship for individual, estate, and disregarded entity partners (if the Report entity as corporation field is not marked).

Note: If the country of organization or citizenship is the United States, leave this field blank. UltraTax CS automatically enters United States on Schedule B-1.

Report entity as corporation

Mark this checkbox if the partner should be treated as a corporation on Schedule B-1. If you do not mark this checkbox, UltraTax CS reports the entity as an individual.


54

Note: This field is applicable only if Disregarded Entity is selected in the Entity field in the Partner tab.

Schedule M-3 information group box

Reportable entity partner

Mark this checkbox if the partner is a reportable entity partner for Schedule M-3. If you mark this checkbox, the partner's name, EIN (Employer Identification Number), and maximum deemed ownership percentage transfer to Schedule M-3.

Notes If you mark this checkbox, UltraTax CS calculates and prints Schedule M-3.

A reportable entity partner is a partner that owns or is deemed to own an interest of 50 percent or more in the partnership's profit, loss, or capital on any day during the tax year of the partnership and was required to complete Schedule M-3 on the partner's most recently filed federal income tax return.

This field is applicable only if Partnership, Corporation, or S Corporation is selected in the Entity field in the Partner tab. Select only the two reportable entity partners with the largest maximum percentage of deemed ownership.

Maximum deemed ownership percentage

If the Reportable entity partner field is marked for this partner, enter the maximum deemed ownership percentage for Schedule M-3.

Form 8805 information

Foreign country code

Select the foreign country code for this partner from the drop-down list. UltraTax CS prepares a Form 8805 for each partner with a foreign country code entered if the Suppress Forms 8804 and 8805 checkbox is not marked in Screen 8804 in the Foreign Withholding folder.

Note: This field is applicable only if the Foreign checkbox is marked for this partner in the Partner tab.

Account number

Enter the partner's account number assigned by the partnership, if applicable.


Partnership income is exempt from US tax

Mark this checkbox if the partnership's effectively connected taxable income is exempt from US tax for this partner. UltraTax CS uses this information to mark the corresponding field on Form 8805.


De minimis partner certificate on file

Mark this checkbox if the partner has a valid de minimis certificate for a nonresident alien individual partner on file in accordance with Regulations section 1.1446-6(c)(1)(ii) and the section 1446 tax due for this partner is less than $1,000. UltraTax CS uses the partner's income to reduce the effectively connected taxable income allocable to foreign partners on Form 8804.

Notes This field is applicable only if the Foreign checkbox is marked for this partner in the Partner tab. To report partial deductions and losses allocable to a specific partner that reduce effectively connected taxable income, enter the amounts

and specially allocate them in the statement dialogs for the Reductions to effectively connected taxable income: State and local taxes / Partner-level items on Form 8804-Cfields in Screen 8804 in the Foreign Withholding folder.


55

Section 108(i) election information group box

Section 752 information not provided

Mark this checkbox if the partner has not provided to the partnership the information necessary to calculate the amount of decrease in liabilities that will be treated as a distribution of money (section 752) in the current year (from a section 108(i) election to defer cancellation of debt income). If you mark this checkbox, UltraTax CS prints the following disclaimer on the Partner's Section 108(i) Annual Information Statement: "Partner did not provide the information necessary to report these amounts."

Basis

Suppress printing of basis worksheet

Mark this checkbox to suppress the printing of the Partner's Basis Worksheet for this partner only. Mark the Suppress calculation of partner basis worksheets field in Screen Basis in the Partner Info, Basis folder to suppress the calculation of the basis worksheet for all partners.

Note: The Partner's Basis Worksheet will still calculate for the partner when this checkbox is marked, and the partner's ending basis will be included in the proforma of beginning of year basis to next year's UltraTax CS.


56


Greater than $

ALLOC Special Allocations

6PALLOC 02 12/14/16 PARTNERSHIP

Page #

(located in the upper left hand corner of the form)

Form ALLOC MUST be attached directly behind the form on which the totals to be allocated have been entered. Enter the form nameof the form containing the amount being allocated. Enter the appropriate ZIP number of the check box indicating the total being allocated.

Form Name

PERCENTAGE ALLOCATIONS

ZIP Numberto Use Loss %to Use Ownership %

Partner #

§

.Partner # .Partner # .Partner # .Partner # .


§

.

.

.

.

.


§

.

.

.

.

.ABSOLUTE AMOUNT ALLOCATIONS

ZIP Number § ZIP Number § ZIP Number §

ADVANCED ALLOCATION SCHEMES

ZIP Number §Greater than $ + Percent

.

.

.

.

.

ZIP Number §+ Percent.....

2016 11

ExacTax, Inc. 11







Unit #


57

Form [11] - Special Allocations and Transfers of Interest

Overview

Special Allocations There are two types (or methods) of allocation that can be used to allocate items to partners. These can be used alone or in combination in an advanced allocation scheme that allows for complex allocations.

Percentage: The first and most commonly used type is percentage. Use this method to allocate an item based on a fixed percentage that represents a partner’s interest in the item. In addition, percentage columns must always equal 100 to ensure that the partner K-1s balance properly. If the column does not equal 100, ExacTax issues a diagnostic message and requires that the column entries need to be corrected.

Absolute Dollar: This allocation type is by absolute dollar. Use this method to allocate a dollar amount that is known in advance. This type is most often used for allocating beginning capital amounts and guaranteed payments to partners. ExacTax requires that the beginning capital amount be expressed as an absolute dollar amount.

Use the Advanced Allocation Scheme fields to define an advanced allocation scheme. You can add up to two Absolute Dollar, two Percentage or one Percentage and one Unit column, to the allocation scheme in the Special Allocation input.

Use Form AllocDepr [14] to allocate the accumulated depreciation and the AMT adjustment for an asset or group of assets.

Transfers of Interest Use this section to enter transfers of partner’s interest.

1. In the Date field, enter the date (within the client’s fiscal year) on which the transfer of interest took place.

2. In the T/R field, enter the transferring and receiving partners’ number.

3. Note: T = Transferring partner and R = Receiving partner.

4. Enter the partners’ transferring and receiving percentages in the Transfer % and Receiving % columns.

The following procedure describes how to enter transferring and receiving percentages. Enter the partners’ transferring and receiving percentages in the Transfer (%) column.

For the transferring partner, enter the percentage of the partner’s ending capital that you are transferring. The transferring partner’s ending capital includes all transfers made prior to the current transfer.

For the receiving partners, enter the percentage of the transferred amount that the partners are receiving.

Note: The total percentage of all receiving partners must equal 100%.

For example, partner 1 is transferring 40% of his interest equally to receiving partners 2 and 3. There are three ways to enter this transfer.

Option 1

For partner 1, enter T in the T/R column and 40% in the Transfer (%) column.

For partner 2, enter R in the T/R column and 50% in the Transfer (%) column.

For partner 3, enter R in the T/R column and 50% in the Transfer (%) column.

Transferring: The default capital account for the transferring partner is Schedule M-2, Property distributions.

Receiving: The default capital account for the receiving partner is Schedule M-2, Property contributions


58

Schedule K and K-1 Supplemental Items Section A

[3] [1] [4]

KSup

6PKSUP 01 10/25/16 PARTNERSHIP

Description (54) Amount

[§ 2]

Specially Allocate Prt Cdn*

[§ 6] [7] [5] [8]

[§ 10] [11] [9] [12]

[§ 14] [15] [13] [16]

[§ 18] [19] [17] [20]

* Print Condition: Enter one of the following codes in this column:1 = Schedule K and Schedule K-1 (Default), 2 = Schedule K only, 3 = Schedule K-1 only

2016 12

ExacTax, Inc. 12


59

Form [12] - Schedules K and K-1 - Supplemental Items

Overview

Use Form KSup to enter supplemental partnership information for items that you want distributed to partners, but that you do not want to affect the partners’ capital accounts. ExacTax places the descriptive text and amount, if any, on Schedule K-1, Other information and on Schedule K, Other items and amounts. Items print for all partners with percentages in the profit-sharing percentage column in the Partner Data Entry window, unless you specially allocate the item.

Electronic Filing Note: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

Supplemental Items

Use this section to enter supplemental partnership information for items that you want distributed to partners, but that you do not want to affect the partners’ capital accounts.


60

Partner # . . .

(mm/dd/yy)

Date of CHANGE

Date of TRANSFER

LOSS Percentage OWNERSHIP & CAPITAL %

Partner #

PROFIT Percentage

. . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .Partner # . . .

RPartner #

Actual Amount

Fair Market Value ofInterest Transferred

Transferring Partner Number

Submit a separate Form {13} for each transfer of interest or change in weighted average and collate them in date order withthe earliest date first.

Transfers of Partner Interest & Changes in Profit, Loss & Capital %

3PTRANS 01 12/26/13 PARTNERSHIP

Page # 2013 13

ExacTax, Inc. 13

.

Percentage % OR

Each transfer may be entered using percentages or actual dollar amounts.A transfer of interest is used to compute the ending capital and DOES NOT change the partners’ percentages for profit, lossor ownership of capital. Any change in these percentages must be entered in the section at the bottom

Transfers of Capital

OPTIONAL – Check one of the following to have the distribution percentages or amounts computed for:

All partners (equally): Do not make any entries except for the Transferor

Receiving partners (equally)*

ProRata (to all Receiving partners based on their current partner interest %)*

*Requires at least one Receiving partner to be entered below and receiving percentages left blank.

Percentages must total to 100%. Actual amounts must equal the total amount transferred.

Enter the actual percent OR the amount transferred to each Receiver using the same column as the Transferor.

OR

.ACTUAL Amount

OR

PERCENTAGE

RPartner # . OR

RPartner # . OR

RPartner # . OR

RPartner # . OR

RPartner # . OR

Change in Profit, Loss and Ownership of Capital

Enter the new percentages at the date of change. The totals MUST equal 100%

Partner # . . .Partner # . . .

(mm/dd/yy)

Capital Accounts

Zero All Capital Accounts


61

Form [13] – Transfer of Partner Interest

Entering change of ownership information (1065) Use this procedure to enter change of ownership information.

Enter the date the ownership changed. (The date you enter must fall within the client’s fiscal year.)

1. Enter the percentage or amount for partner(s) whose is transfer their ownership has changed.

2. Enter the percentage or amount for the partners who will receive the partner interest transfer.

a. Check the box to allocated equally to all reminding partners.

b. Check the box to allocated equally to the partners who will receive the partner interest transfer

Profit, Loss, and Ownership Use these fields to enter changes of ownership throughout the year. You can then update the percentages or units for partners whose ownership has changed.


62

Partner #

Partner #

Partner #

Partner #

Partner #

Partner #

Group Allocated

Select Asset (Enter Asset #)

Enter description for group allocation (38)

Partner #

Partner #

Partner #

Partner # .Partner # .Partner # .Partner # .Partner # .

Partner #

Partner #Partner #Partner #


Partner #


SETUP

Farm Rental #Form (Indicate Form on which asset(s) are entered)

AllocDepr Specially Allocated Depreciation/Amortization

6PALDEP 01 10/25/16 PARTNERSHIP

Page #

Individually Allocated


2016 14

ExacTax, Inc. 14

Partner #Partner #

Partner #Partner #

INC Farm #Rental #

ASSET 1065 ALLOCATIONasdfasdf

asdfasdf

asdfasdfMenu

Enter Special Allocation (Edit Allocation)

Percentage Allocation (xxx.xxxxxx) Absolute Amount Allocation

Partner # .Partner # .Partner # .

.Partner # .

Partner #Partner #Partner #Partner #

Partner # ..

Partner # .Partner # .Partner # .

Partner #


.Partner # .Partner # .Partner # .Partner # .

Partner #Partner #Partner #Partner #

Select Assets (Enter Asset #'s)

Enter Special Allocation (Edit Allocation)

Percentage Allocation (xxx.xxxxxx) Absolute Amount Allocation

Add


63

Form [14] – Depreciation Special Allocation

Overview Use this input form to specify the appropriate asset allocations for a partnership client. This input is used to identify which partnership assets have depreciation to be specially allocated among the partners.

Single Asset Allocation Enter the asset number of the asst to be allocated. Then enter the partner number and the amount or percentage of deprecation to be allocated to each partner.

Multiply Asset Allocation Enter the asst number of the asst to be allocated. Then enter the partner number and the amount or percentage of deprecation to be allocated to each partner. These asset will be allocated as a single asset.


64

Ptr Alloc*

Net Loss

Net Profit

PtrAlloc*

General Information

California Adjustments

Meals (26) X 50%

Total Deductions

( )Memo only

Gross IncomeMemo only

Description (29)

INC Income and Deductions

6PINCDED 02 11/09/16

Page 1 Deductions

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . .Returns and allowances . . . . . . . . . . . . . . . . . . . . [7]

Amount [9]#

Guaranteed payments: (Specially allocate on SepK {65})Salaries and wages (Before employment credit) . . .

Repairs and maintenance . . . . . . . . . . . . . . . . . .Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11]

Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [19]Description (25)#

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation-tax (Force) . . . . . . . . . . . . . . . . . . .Page 1 depreciation to Form 1125-A:Percentage . . . . . . . . . . . . . . . . . . .(xxx.xxxxxx)Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amortization (Force) . . . . . . . . . . . . . . . . . . . . . .Meals/entertainment (100% Subject to 50% limit) . .Meals (100% Subject to DOT 80% limit) . . . . . . . . .


[§ 9] Other income (loss)

[§ 19] Taxes and licenses

[§ 30] Other deductions

PARTNERSHIP

Retirement plans:

Employee benefits . . . . . . . . . . . . . . . . . . . . . . . .

Depletion . . . . . . . . . . . . . . . . . .

Overflow # 2016 20A

ExacTax, Inc. 20

Contribution paid . . . . . . . . . . . . . . . . . . . . . . . .Contribution accrued . . . . . . . . . . . . . . . . . . . . .

[§ 11] Other income taxesTypeCode#

Enter the corresponding line number from (ZIP 13). The description and amount are automatically retrieved.

Type codes: D = Deductible (default), N = Non-deductible

CAInc (Adjusts line 21 and Schedule M-1)

Amount

Deductible meals & entertainment

Ptr Alloc*

Ptr Alloc*

(Computed from ZIP 26 and 27)

( )

Page 1 Deductions

Ptr Alloc* Special Allocations(See Form Alloc [11]) Net Loss

Net Profit

[6]

[4]

[12]

[20]

[21][22]

[23]

[26]

[27][28][29][31][32]

[25]

[34]

[4]

[4]

[24]

[13]

[33]

Lease inclusion (Force). . . . . . . . . . . . . . . . . [18]

Health insurance. . . . . . . . . . . . . . . . . . . . . . . .Pensions and IRAs. . . . . . . . . . . . . . . . . . . . . .Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[10]

[14][15][16]

Income

[5]Dispostion of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Description . . . . . .[2]

Unit. . . . . . . [1] State . . . .[3]


65

Form [20A]- Income and Deductions

Overview

Use this form to enter information for Form 1065, Page 1, Income and Deductions. Multiple units of Form Inc can be entered. ExacTax transfers the individual units to the Ordinary Income (Loss) Worksheet and the totals to Form 1065, Page 1.

General information

Use this section to enter general information for this unit of ordinary income and deductions.

Unit

Enter a unit number that corresponds to the number in the Unit field in Form 4562. When you enter a unit number, ExacTax assigns the depreciation and amortization to the correct activity.

Description

The description that you enter in this field appears on the Ordinary Income (Loss) Worksheet. This field is mandatory.

State

Enter the state postal code for the state in which the activity is located. The state postal code allows certain state-specific versions of ExacTax to determine in-state and out-of-state income.

Specially allocate

Click the Ptr Alloc button to specially allocate this activity to partners using ratios that are different from the profit-sharing percentages. You do not need to use this field unless the partnership has an allocation for this activity that differs from the profit-sharing percentages.

Note: The Ptr Alloc does not include farm income or loss reported on Schedule F, 4797 ordinary income, or ordinary income or loss or guaranteed payments from Schedule K-1 passthrough entities. Use Form SepK to specially allocate 4797 ordinary income. Use Form K-1 to specially allocate the amounts from passthrough entities.

Disposition of activity

Enter X to delete this unit of Form Inc on next year’s proforma. If you mark this checkbox, ExacTax indicates this activity is disposed on the Ordinary Income (Loss) Worksheet.

Income

Use this section as applicable for each activity.

Other income

Use the field to enter other income items not entered elsewhere. ExacTax adds the items entered in the field to the following items in the printed statement for Form 1065, Page 1.

Form 6478, Biofuel Producer Credit

Form 8846, Biodiesel and Renewable Diesel Fuels Credit


66

Guaranteed payments from a passthrough Schedule K-1 in which the current partnership is a partner

Use Form Cr and Form Cr-4 of the associating activity to enter credit information for these items and Form K1 to enter guaranteed payments from a passthrough activity.

Deductions

Use this section to enter deductions as applicable for each activity. You can specially allocate data to partners from several fields in this section. These include the Taxes and licenses field, the Depletion field, and the Deductible meals and entertainment field. If you specially allocate these items, ExacTax moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Salaries and wages

Enter the amount of salaries and wages before any reductions for allowable credits. ExacTax reduces the amount entered in this field by the amount of the allowable credits for Forms 5884, 8844, 8845, and 8932 based on entries in Forms Cr, Cr-3, Cr-4, and Cr-5 for the associating activity before transferring the net amount to Form 1065, Page 1.

Guaranteed payments

Enter the amount of deductible guaranteed payments associated with this activity. Also include health insurance payments for partners and their families and payments for pensions and IRAs for partners. Specially allocate these amounts in Form SepK. Enter nondeductible guaranteed payments in Form SepK.

Lease inclusion (Force)

Use this field to override the lease inclusion calculated from the Form 51 for this unit. If the auto inclusion is zero, enter 0 (zero). The amount of rent expense that ExacTax will transfer to Form 1065, Page 1 will be reduced by the amount of lease inclusion calculated or entered in this field.

Taxes and licenses

Enter the amount of tax and licenses before the reduction for the credit for employer Social Security and Medicare taxes paid on certain employee tips. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8846 credit based on entry in Form Cr-4 for the associating activity before transferring the net amount to Form 1065, Page 1.

Depreciation - tax (Force)

Use this field to override the depreciation calculated from either the asset module or Form 4562 for this unit. If tax depreciation is zero, enter 0 (zero). ExacTax requires an entry in this field if you have book depreciation but no tax depreciation and you want ExacTax to generate a Schedule M-1 or Schedule M-3 depreciation adjustment.

Page 1 depreciation to Form 1125-A: Percentage

Enter a percentage (xxx.xxxxxx) to allocate a portion of the Page 1 depreciation to Form 1125-A for the associating activity. ExacTax multiplies the amount in the Depreciation - tax (Force) field in this form, or if that field is blank, the Form 1065, Page 1 depreciation from either the asset module or Form 4562, by the percentage you enter in this field. The resulting amount prints in the statement for either Form 1125-A, Additional section 263A costs or Other costs depending on the code in the Type of cost - depreciation field in Form A.

Note: ExacTax ignores an entry in this field if you made an entry in the Other costs: Depreciation (Force) field in Form A.

Page 1 depreciation to Form 1125-A: Amount


67

Use this field to allocate a portion of the Form 1065, Page 1 depreciation to Form 1125-A. The amount you enter prints in the statement for either Form 1125-A, Additional section 263A costs or Other costs depending on the code in the Type of cost - depreciation field in Form A.

Note: ExacTax ignores an entry in this field if you make an entry in the Other costs: Depreciation (Force) field in Form A.

Depletion

Enter the amount of depletion for Form 1065, Page 1. Do not include any oil and gas depletion.

Note: Click the Ptr Alloc button to specially allocate depletion. If specially allocated, ExacTax moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Retirement plans: Contribution paid / Contribution accrued

Enter the retirement plan expenses in the Contribution paid field and the Contribution accrued field. ExacTax combines the amounts in these fields and prints the result on Form 1065, Page 1. ExacTax includes the amount entered in the Contribution accrued

Employee benefits

Enter the amount of employee benefits before the reduction for the credit for small employer health insurance premiums. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8941 credit based on entry in Form Cr-5 for the associating activity before transferring the net amount to Form 1065, Page 1.

Other deductions

Use the field to enter other deductions not entered elsewhere. ExacTax adds the items entered in the field to the following adjustments in the printed statement for Form 1065, Page 1.

Amortization (Form Inc)

Meals and entertainment (Form Inc)

Start-up expenses (asset module or Form 4562)

Organization costs (asset module or Form 4562)

Oil and gas deductions related to Page 1 income when not specially allocated (Form OGWell)

Form 6765, Credit for Increasing Research Activities (Form Cr-2)

Form 8820, Orphan Drug Credit (Form Cr-2)

Form 8826, Disabled Access Credit (Form Cr-2)

Form 8881, Credit for Small Employer Pension Plan Startup Costs (Form Cr-5)

Form 8882, Credit for Employer-Provided Childcare Facilities and Services (Form Cr-5)

Amortization (Force)

Enter an amount, including 0 (zero), to override the amortization calculated from either the asset module or Form 4562 for this activity. ExacTax requires an entry in this field if you have book amortization but no tax amortization and you want ExacTax to generate a Schedule M-1 or Schedule M-3 adjustment.


68

Meals and entertainment

Enter 100 percent of the meals and entertainment expenses. ExacTax automatically reduces this amount by 50 percent when calculating Form 1065, Page 1, Other deductions. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.

Notes

Click the Ptr Alloc button to specially allocate the deductible portion of meals and entertainment. If specially allocated, ExacTax moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Meals

Enter 100 percent of the meals expense for employees who are subject to the hours of service limitations of the Department of Transportation (DOT). ExacTax automatically reduces this amount by 20 percent when calculating Form 1065, Page 1, Other deductions. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.

Examples of qualifying employees are certain air transportation employees, interstate truck and bus operators, railroad employees, and merchant mariners under Coast Guard regulations.

Notes

Click the Ptr Alloc button to specially allocate the deductible portion of meals and entertainment. If specially allocated, ExacTax moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Taxes included in ordinary deductions

ExacTax automatically transfers taxes from federal Form Inc to the field. To classify an item as a nondeductible limited partnership tax (LLC annual tax), enter the appropriate code from the following table, or see the fieldview list of available options.

Type Code

Description Destination

D Deductible (default)

Transfers to Form 565, Page 2, line 21 (Form 568, Page 4, Schedule B, line 21)

N Nondeductible Transfers to Form 565, Page 5, Schedule M-1, line 4c and Page 4, Schedule K, line 18c (Form 568, Page 6, Schedule M-1, line 4c and Page 5, Schedule K, line 18c)

If there are nondeductible taxes from rent and royalty, farm or farm rental properties, make the changes in the corresponding Form CARent, CAF2, or CAFR2.


69

Amount [9]

A Cost of Goods Sold

6PA 02 12/14/16

Beginning inventory (Force) (If different from Schedule L beginning of year inventory amount ). . . . . . . . [3]Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PARTNERSHIP

Description (29)#Other costs . . . . . . . . . . . . [§ 9]

Ending inventory (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016

ExacTax, Inc. 20B

20B

Depreciation (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amortization (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional section 263A costs. . . . . . . . . . . . . . . . . . . . .[§ 8]


[4]

Type of cost - depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Additional 263A costs, 2 = Other costs) [7]

[14]Lease inclusion (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Cost of labor. . . . . . . . .. .[§ 6]Amount [6]Description (29)#

[10][11]

[2]Description . . . . . . . . . . . . [1]Unit . . . . . . .


70

Form [20B] - Cost of Goods Sold

Overview

Use this form to enter information to calculate cost of goods sold for Form 1125-A. Use Form OthInfo to answer general questions for Form 1125-A.

Cost of Goods Sold

ExacTax calculates the cost of goods sold per unit from the amounts in this section and transfers the unit amounts to the Ordinary Income (Loss) Worksheet and the totals to Form 1125-A.

Beginning inventory (Force)

ExacTax defaults Form 1125-A, Inventory at beginning of year to Schedule L, Beginning of tax year Inventories. Enter an amount, including 0 (zero), to use a different amount for Form 1125-A. If an amount is entered for any unit, then all units must be forced.

Type of cost - depreciation

By default, ExacTax reports the Cost of Goods Sold depreciation from either the asset module or Form 4562 as additional section 263A costs. Use this field to report the Cost of Goods Sold depreciation as other costs.

Additional section 263A costs

Use the field to enter additional IRC section 263A costs. By default, ExacTax adds the amount in this field to the amount of Cost of Goods Sold depreciation from either the asset module or Form 4562. Use the Type of cost - depreciation field to report the Cost of Goods Sold depreciation as other costs.

Note: Use the Depreciation (Force) field and the Amortization (Force) field in this form to override the depreciation and amortization that ExacTax calculates from either the asset module or Form 4562.

Other costs

Use the field to enter other inventory costs. By default, ExacTax reports Cost of Goods Sold depreciation from either the asset module or Form 4562 as additional section 263A costs. If you enter 2 in the Type of cost - depreciation field, ExacTax reports Cost of Goods Sold depreciation as other costs.

Note: Use the Depreciation (Force) field and the Amortization (Force) field in this form to override the depreciation and amortization that ExacTax calculates from either the asset module or Form 4562.

Depreciation (Force)

Enter an amount, including 0 (zero), to override the depreciation calculated from either the asset module or Form 4562 for Cost of Goods Sold or from the Page 1 depreciation to Form 1125-A fields in Form Inc.


Enter an amount, including 0 (zero), to override the amortization calculated from either the asset module or Form 4562 for Cost of Goods Sold.



71

Use this field to override the lease inclusion calculated from the Form 51. If the auto inclusion is zero, enter 0 (zero).

Ending inventory (Force)

ExacTax defaults Form 1125-A, Inventory at end of year to Schedule L, End of tax year Inventories. Enter an amount, including 0 (zero), to use a different amount for Form 1125-A. If an amount is entered for any unit, then all units must be forced.


72

Total and Qualified dividends:Qualified dividends do not add tothe total.

PtrAlloc

Dividends . . . . . . . . . . . . . .[§ 5]

Non-depreciable personal property used in trade or business:

K Schedule K - Income (Loss)

6P6SCHK 01 10/26/16 PARTNERSHIP

Interest income (See Form K-4 {21D} fortax-exempt interest) . . . . . . . . . . . . . . . . . . . . . . [§ 1]

US interest . . . . . . . . . . . . . . . . . . . . . . . . . [§ 3]

QualifiedDividends

Included in Total [6]#

Qualifying dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other income (loss) . . . . . . . . . . . . . . . . . . [§ 14]

Other portfolio income (loss) . . . . . . . . . . . [§ 15]

Mining exploration costs recapture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unrecaptured Section 1250 gain from Form 1099-DIV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21A

21AOverflow # 2016

ExacTax, Inc.

Form 4684 long-term loss from trade/business property. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Form 4684 long-term loss from income producing property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Form 4684 long-term gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 1202 gain - 50 % exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net short - term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net long - term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net 28% rate capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc# Description (29) Amount [1]

PtrAlloc

Description (29)

#[14]

Ptr AllocDescription (29) Amount [14]

[14]

[14]

[14]

#[15]


[15]

[15]

[15]

PtrAlloc

[17]

Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total OrdinaryDividends [5]

Section 1202 gain - 60 % exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

# Description (29) Amount [3]

[2]

[4]

[13][12]

[10][8][7]

[9]

[19]

[22][23][24][25][26]

[16][18]

Income from Form 5471, Schedule I, Line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11]

[29]

Section 1202 gain - 75 % exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27]Section 1202 gain - 100 % exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [28]

Income (Loss)

Short-term capital gain (loss). . . . . . . . . . . [§ 20]

Long-term capital gain (loss) . . . . . . . . . . . [§ 21]

#[20]


[20]

[20]

[20]

#[21]


[21]

[21]

[21]

PtrAlloc


73

Form [21A] - Schedule K - Income (Loss)

Overview

In addition to the fields in this form, ExacTax automatically calculates and transfers the following items to the Income (Loss) section on Schedule K. Use Forms K1 and K1-2 to enter income information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary. Use Form K to enter income (loss) items that do not need to be separately stated by partner by activity.

Ordinary business income (loss)

Net rental real estate income (loss)

Other gross rental income (loss)

Guaranteed payments

Royalties

Oil and gas royalties

Net short-term capital gain (loss)

Net long-term capital gain (loss)

Collectibles 28% gain (loss)

Unrecaptured section 1250 gain

Net section 1231 gain (loss)

Net Form 4684 gain (loss)

Net section 1202 gain

Deferred cancellation of debt income recognized in the current year from a section 108(i) election

Income from Form 5471, Schedule I, line 6

Income (Loss)

Use this section to enter income items for the Schedule K, Income (Loss) section.

US interest

Use the field to report income from U.S. obligations. ExacTax includes this amount on Schedule K, Interest income and separately states the income from U.S. obligations on Schedule K-1, box 20, Other information.

Unrecaptured section 1250 gain from Form 1099-DIV

Enter the amount of unrecaptured section 1250 gain from Form 1099-DIV. ExacTax includes this amount with the section 1231 unrecaptured section 1250 gain and the Unrecaptured section 1250 gain from sale or exchange of partnership interest field in Form D for the printed statement on Schedule K, Unrecaptured section 1250 gain.

Other income (loss) items: Other income (loss)


74

ExacTax adds the items entered in the field to the following items in the printed statement. Use Form K1-2 to enter other income (loss) from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Ordinary income (loss) from a publicly traded partnership on a passthrough Schedule K-1

Other portfolio income (loss)

Farm income that is specially allocated

Form 4797 ordinary gain (loss) that is specially allocated

Taxes related to ordinary income that are specially allocated

Depletion (not related to oil and gas) that is specially allocated

The deductible portion of meals and entertainment expense related to ordinary income that is specially allocated

Page 1, Cost of Goods Sold, and Schedule F depreciation and amortization amounts that are specially allocated (if reported by activity)

Oil and gas well net income, from the ExacTax/Oil & Gas module, related to ordinary income that is specially allocated

Section 1256 contracts

Mining exploration costs recapture

Cancellation of debt (including from a section 108(i) election)

Gains or losses from short-term and long-term nondepreciable personal property

Form 4684 amounts

Qualified small business stock (section 1202)

Income from Form 5471, Schedule I, line 6 when indicated in Form 5471-5

If you share a partner's Schedule K-1 data with an ExacTax/1040 or ExacTax/1041 return, complete the K-1 Export column in the field. Enter the K-1 Export code directly or select the code from the drop-down list.

Other income (loss) items: Cancellation of debt

Enter the amount of cancellation of debt income. This amount is included in Schedule K, Other income (loss).

Note: Use Form CODI in the Elections folder to enter cancellation of debt income recognized in the current year from a prior year section 108(i) election that deferred the recognition of cancellation of debt income.

Nondepreciable personal property used in trade or business

Use the field to enter short-term and long-term capital gains (losses) attributable to nondepreciable personal property reported on Schedule D. ExacTax subtracts the amounts you enter here from the amounts that are transferred from Schedule D. These amounts are included on Schedule K, Other income (loss).

Income from Form 5471, Schedule I, line 6


75

ExacTax transfers income from data you enter in Form 5471-5 and allocates the amount to the partners based on the profit-sharing percentage. Click the Ptr Alloc button to allocate other income from a foreign corporation to the partners using ratios other than the profit-sharing percentage.


76

65PSCHK-2 01 10/25/16

Schedule K - Deductions

PARTNERSHIP

Cash Contributions (50%) . . . . . . . . . . . . [§ 1]

Cash Contributions (30%) . . . . . . . . . . . . [§ 2]

Noncash Contributions (50%) . . . . . . . . . [§ 3]

Noncash Contributions (30%) . . . . . . . . . [§ 4]

Capital gain property to a 50% org (30%) [§ 5]

Capital gain property (20%) . . . . . . . . . . [§ 6]

Subject to 2% floor . . . . . . . . . . . . . . [§ 14]

Other . . . . . . . . . . . . . . . . . . . . . . . . . . [§15]

Guaranteed Payments related to portfolio deductions (subject to 2% floor): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 59(e)(2) expenditures (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [11][10]

Type of expenditures (Force) (36) . . . . . . . . . . [12]

Other deductions . . . . . . . . . . . . . . . . . . .[§ 13]

Other health insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Educational assistance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dependent care benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Commercial revitalization deduction from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions related to portfolio income:

21B

21BOverflow # 2016

ExacTax, Inc.

Form 4684 short-term loss from income producing property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ptr Alloc

#[1]


# Ptr AllocDescription (29) Amount [2]





[1]

[2]

[2]

[3]

[3]

[4]

[4]

[5]

[5]

[6]

[6]

#[13]

[13]


#[14]

[14]


#[15]

[15]


K-2

Start-up expenses (subject to 2% floor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Organization costs (subject to 2% floor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[16][17]

[25] [26][28][27]

[29] [30][31] [32][33]

[18]

[21]

[35][34][36]Other pensions and IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment interest expense . . . . . . . . . . [§ 8]# Ptr AllocDescription (29) Amount [8]

[9]

[9]

[37]

Ptr Alloc

Lease inclusion (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [24][23]

Health insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pensions and IRAs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[20]Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [19]

Contributions (100%). . . . . . . . . . . . . . . . [§ 7] # Description (29) Amount [7] Ptr Alloc[7]

[7]


77

Form [21B]-2 - Schedule K - Deductions (1065)

Overview

In addition to the fields in this form, ExacTax automatically calculates and transfers the following items to the Deductions section on Schedule K. Use Form K1-2 to enter deduction information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary. Use Form K to enter income (loss) items that do not need to be separately stated by partner by activity.

Section 179 expense deduction

Form 8283, Noncash charitable contributions more than $500

Oil and gas deductions related to royalty income

Section 59(e)(2) expenditures related to oil and gas properties

Original issue discount deductions allowable as a deduction in the current year from a section 108(i) election

Deductions

Use this section to enter deductions for the Schedule K, Deductions section.

Noncash contributions (50%) / … / Capital gain property (20%)

Use the fields to enter noncash contribution information if the contribution was less than $500 and you are not filing Form 8283. If you are filing Form 8283 to report noncash contributions, use Forms 1098C, 8283P1, and 8283P2.

Section 59(e)(2) expenditures (Force)

ExacTax automatically transfers the expenditures related to intangible drilling costs (IDC) from the ExacTax/Oil & Gas module. If you are not licensed for this module, enter the appropriate amount in this field. ExacTax combines the amount from the Section 59(e)(2) expenditures: Amount field in Form K1-2 and the amount entered in this field on Schedule K, Section 59(e)(2) expenditures.

Other deduction items: Other deductions

ExacTax adds the items entered in the field to the following items in the printed statement. Use Form K1-2 to enter deductions from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Deductions related to portfolio income (subject to 2 percent floor and other)

Royalty lease expenses, from the ExacTax/Oil & Gas module

Deductions - royalty income

Guaranteed payments related to portfolio deductions (subject to 2 percent floor) including health insurance and pensions and IRAs

Start-up expenses (subject to 2 percent floor)

Organization costs (subject to 2 percent floor)

Schedule K depreciation and amortization (regardless of special allocation)


78

Depreciation and amortization amounts (from other than Schedule K) that are specially allocated, unless you select the option to report specially allocated depreciation by activity in Form 1065

Original issue discount deduction allowable as a deduction in the current year from a section 108(i) election

Other health insurance

Educational assistance benefits

Dependent care benefits

Preproductive period expenses

Commercial revitalization deduction from rental real estate activities

Penalty of early withdrawal of savings

Other pensions and IRAs

Reforestation expense deduction

Form 4684 short-term loss from income producing property

Deductions related to portfolio income: Start-up expenses (subject to 2% floor) / Organization costs (subject to 2% floor)

ExacTax automatically transfers the start-up expenses and organization costs entered in the asset module to Schedule K, Other deductions. Click the Ptr Alloc buttons to allocate the deductions to the partners using ratios other than the profit-sharing percentage.

Other deduction items: Lease inclusion (Force)

Use this field to override the lease inclusion calculated from the Form 51. If the auto inclusion is zero, enter 0 (zero).

Other deduction items: Other health insurance

ExacTax combines the amount entered in this field with the amount entered in the Guaranteed payments: Health insurance field and describes the amount as Health Insurance for Partners in the statement for Schedule K, Other deductions.

Other deduction items: Other pensions and IRAs

ExacTax combines the amount entered in this field with the amount entered in the Guaranteed payments: Pensions and IRAs field and describes the amount as Pensions and IRAs in the statement for Schedule K, Other deductions.


79

PtrAlloc

Schedule K - DPAD, Self-Employment, and CreditsK-3

6PSCHK2A 01 10/25/16 PARTNERSHIP

Method for computing qualified production activities income . . . . . . . . . . . . .(1 = By partnership, 2 = By partner)

21C

21C2016

ExacTax, Inc.

Other information . . . . . . . . . . . . . . . . . . . . [§ 38]

[1]

Domestic production gross receipts (DPGR) . . . . . . . . . . . . . . . . . . . . . . .

Gross receipts from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cost of goods sold allocable to DPGR . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Cost of goods sold from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions, expenses and losses:

[16]

Directly allocable to DPGR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]

Allocable to non-DPGR class of income . . . . . . . . . . . . . . . . . . . . . . . . . [24]

Not directly allocable to any class of income . . . . . . . . . . . . . . . . . . . . .

Indirectly allocable deductions, expenses and losses . . . . . . . . . . . . . . .

[28]

Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]

Domestic production activities deduction from cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified production activities income (Calculated Code U)

All activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

#[38]

[38]


[41]

[21]

[25]

[29]

[36]

Credits

Self Employment Income

[42]Self employment income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[45]Gross fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gross non-farm income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Guaranteed payments to limited partners for services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[51]Undistributed capital gains credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[53]Backup federal withholding tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suppress gross nonfarm income on Schedules K and K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[43]Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [44]

[52][54]

[9]

[13]

[17]

[10]

[14]

[7]

[11]

[15]

All ActivitiesOil-related Activities

[6]

[2] [3] [4]

[8]

[5]

[35]

[37]

[18]

[26]

[30]

[19]

[23]

[27]

[31]

[22]

Oil-related production activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [39]

[46][48][49]

[47]

[50]

[32] [33]

Form W-2 wages (Calculated Code V) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[40]

Foreign Transactions

[55]Gross income from all sources (Other than from passthrough K-1's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[56]


80

Form [21C] - Schedule K - DPAD, Self-Employment, Credits, and Foreign

Overview

In addition to the fields in this form, ExacTax automatically calculates and transfers the following items to the Self-Employment, Credits, and Foreign Transactions sections on Schedule K. Use Forms K1-3, K1-4, and K1Frgn to enter information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Net earnings (loss) from self-employment

Gross farming income

Gross nonfarm income

Low-Income Housing Credit: Section 42(j)(5)

Low-Income Housing Credit: Other

Investment Credit

Work Opportunity Credit

New Hire Retention Credit

Biofuel Producer Credit

Credit for Increasing Research Activities

Orphan Drug Credit

Disabled Access Credit

Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Empowerment Zone Employment Credit

Indian Employment Credit

Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Biodiesel and Renewable Diesel Fuels Credit

New Markets Credit

Credit for Small Employer Pension Plan Startup Costs

Credit for Employer-Provided Childcare Facilities and Services

Credit for Employer Differential Wage Payments

Credit for Small Employer Health Insurance Premiums

Foreign transaction information

Domestic Production Activities Deduction (DPAD)

Use this section to enter information for Schedule K and the Form 8903 Domestic Production Activities Deduction Worksheet. ExacTax uses information from these fields in a domestic production activity information statement attached to Schedule K, Other deductions.


81

Method for computing qualified production activities income

Enter 1 to compute qualified production activities income at the partnership level or 2 to compute at the partner level. If you enter 1, only the calculated qualified production activities income, Form W-2 wages, and domestic production activities deduction from cooperatives from the Form 8903 Domestic Production Activities Deduction Worksheet will transfer to Schedule K. If you enter 2, all information will transfer to Schedule K, and the Form 8903 Domestic Production Activities Deduction Worksheet will not be completed.

Gross receipts from all sources / Cost of goods sold from all sources / Deductions, expenses, and losses: Allocable to non-DPGR class of income / Deductions, expenses, and losses: Not directly allocable to any class of income / Other information

Enter the oil-related and all activities information needed to calculate the domestic production activities deduction at the partner level.

Note: These fields are not applicable if you enter 1 in the Method for computing qualified production activities income field.

Qualified production activities income (Calculated code U) / Form W-2 wages (Calculated code V)

Click the Ptr Alloc buttons to allocate the calculated amount of qualified production activities income and Form W-2 wages from the Form 8903 Domestic Production Activities Deduction Worksheet to the partners using ratios that are different from the profit-sharing percentages.

Self-Employment

Use this section to enter information for the Schedule K, Self-Employment section. ExacTax calculates each partner's net earnings (loss) from self-employment and generates worksheets for the partnership and each partner.

Net earnings (loss) from self-employment (Force)

ExacTax calculates net earnings (loss) from self-employment on the Partnership Self-Employment Worksheet. Enter an amount, including 0 (zero), to override the calculated amount. ExacTax transfers the amount to Schedule K, Net earnings (loss) from self-employment.

Notes

Net earnings (loss) from self-employment are calculated based on the type of partner. Select the following partner types in the Partner tab in the Partner Information window in Partner Data Entry.

General Partner and LLC Member (SE Income) - calculate net earnings (loss) from self-employment for all applicable items

Limited Partner and LLC Member (SE on services) - calculate net earnings (loss) from self-employment only on guaranteed payments for services

LLC Member (No SE) - does not calculate net earnings (loss) from self-employment

Gross fishing income


82

Enter the amount of gross fishing income. ExacTax adds this amount and the gross farm income entered in Form F to calculate Schedule K, Gross farming or fishing income. Individual partners may need this amount to figure net earnings from self-employment under the farm optional method on Schedule SE (Form 1040), Section B, Part II.

Notes

ExacTax allocates the amount entered to all partners based on their profit percentage. Click the Ptr Alloc button to allocate this amount to the appropriate partners.

By default, ExacTax calculates gross farming or fishing income on Schedules K and K-1 only for partners subject to self-employment. To calculate this amount for all partners, mark the Calculate gross farm and nonfarm income for all partners field in this form.

Gross nonfarm income (Force)

ExacTax uses Form 1065, Page 1, line 3 - Gross profit plus Form 1065, Page 1, line 7 - Other income (loss) to calculate Schedule K, line 14c - Gross nonfarm income. Individual partners may need this amount to figure net earnings from self-employment under the nonfarm optional method in Section B, Part II of Schedule SE (Form 1040). Enter an amount, including 0 (zero), to override the gross nonfarm income that ExacTax calculates.

Notes


By default, ExacTax calculates gross nonfarm income on Schedules K and K-1 only for partners subject to self-employment. To calculate this amount for all partners, mark the Calculate gross farm and nonfarm income for all partners field in this form.

Calculate gross farm and nonfarm income for all partners

By default, ExacTax calculates gross farming or fishing income and gross nonfarm income on Schedules K and K-1 only for partners subject to self-employment income. Enter X in this field to calculate gross farming or fishing income and gross nonfarm income on Schedules K and K-1 for all partners.

Guaranteed payments to limited partners for services

Enter the amount of guaranteed payments to limited partners for services. You must include these amounts in the appropriate Guaranteed payments fields in Forms 4835-2, F-2, SepK, K-2, Inc, OGWell, and Rent.

Note: ExacTax allocates the amount entered to all partners based on their profit percentage. Click the Ptr Alloc button to allocate this amount to the appropriate partners.

Credits

In addition to the fields in this section, ExacTax automatically calculates and transfers the following items to the Credits section on Schedule K. Use Form K1-4 to enter credits from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Form 3468, Investment Credit (lines 9, 11i, and 13 and rehabilitation credit on lines 11e and 11f related to rental real estate activities only)


83

Form 5884, Work Opportunity Credit


Form 6765, Credit for Increasing Research Activities

Form 8586, Low-Income Housing Credit

Form 8820, Orphan Drug Credit

Form 8826, Disabled Access Credit

Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Form 8844, Empowerment Zone Employment Credit

Form 8845, Indian Employment Credit

Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips


Form 8874, New Markets Credit

Form 8881, Credit for Small Employer Pension Plan Startup Costs

Form 8882, Credit for Employer-Provided Childcare Facilities and Services

Form 8932, Credit for Employer Differential Wage Payments

Form 8941, Credit for Small Employer Health Insurance Premiums

Other credits not entered elsewhere on Form Cr


Use this section to enter partnership foreign transaction information for the Schedule K, Foreign Transactions section. Use Forms K1-4 and K1Frgn to enter information from Schedules K-1 received from other partnerships, estates, or trusts.

Gross income from all sources

Enter the partnership level gross income for Schedule K, Gross income from all sources. Enter all other foreign transaction information in Form KFrgn.


84

PtrAlloc

Schedule K - DPAD, Self-Employment, and CreditsK-3

6PSCHK2A 01 10/25/16 PARTNERSHIP

Method for computing qualified production activities income . . . . . . . . . . . . .(1 = By partnership, 2 = By partner)

21C

21C2016

ExacTax, Inc.

Other information . . . . . . . . . . . . . . . . . . . . [§ 38]

[1]

Domestic production gross receipts (DPGR) . . . . . . . . . . . . . . . . . . . . . . .

Gross receipts from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cost of goods sold allocable to DPGR . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Cost of goods sold from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


[16]

Directly allocable to DPGR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]

Allocable to non-DPGR class of income . . . . . . . . . . . . . . . . . . . . . . . . . [24]

Not directly allocable to any class of income . . . . . . . . . . . . . . . . . . . . .

Indirectly allocable deductions, expenses and losses . . . . . . . . . . . . . . .

[28]

Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]

Domestic production activities deduction from cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified production activities income (Calculated Code U)

All activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

#[38]

[38]


[41]

[21]

[25]

[29]

[36]

Credits

Self Employment Income

[42]Self employment income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[45]Gross fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gross non-farm income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Guaranteed payments to limited partners for services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[51]Undistributed capital gains credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[53]Backup federal withholding tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suppress gross nonfarm income on Schedules K and K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[43]Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [44]

[52][54]

[9]

[13]

[17]

[10]

[14]

[7]

[11]

[15]

All ActivitiesOil-related Activities

[6]

[2] [3] [4]

[8]

[5]

[35]

[37]

[18]

[26]

[30]

[19]

[23]

[27]

[31]

[22]

Oil-related production activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [39]

[46][48][49]

[47]

[50]

[32] [33]

Form W-2 wages (Calculated Code V) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[40]


[55]Gross income from all sources (Other than from passthrough K-1's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[56]


85

Form [21C] - Schedule K - DPAD, Self-Employment, Credits, and Foreign

Overview

In addition to the fields in this form, ExacTax automatically calculates and transfers the following items to the Self-Employment, Credits, and Foreign Transactions sections on Schedule K. Use Forms K1-3, K1-4, and K1Frgn to enter information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.


Gross farming income

Gross nonfarm income

Low-Income Housing Credit: Section 42(j)(5)

Low-Income Housing Credit: Other

Investment Credit

Work Opportunity Credit

New Hire Retention Credit

Biofuel Producer Credit

Credit for Increasing Research Activities

Orphan Drug Credit

Disabled Access Credit

Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Empowerment Zone Employment Credit

Indian Employment Credit

Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Biodiesel and Renewable Diesel Fuels Credit

New Markets Credit

Credit for Small Employer Pension Plan Startup Costs

Credit for Employer-Provided Childcare Facilities and Services

Credit for Employer Differential Wage Payments

Credit for Small Employer Health Insurance Premiums

Foreign transaction information


Use this section to enter information for Schedule K and the Form 8903 Domestic Production Activities Deduction Worksheet. ExacTax uses information from these fields in a domestic production activity information statement attached to Schedule K, Other deductions.


86

Method for computing qualified production activities income

Enter 1 to compute qualified production activities income at the partnership level or 2 to compute at the partner level. If you enter 1, only the calculated qualified production activities income, Form W-2 wages, and domestic production activities deduction from cooperatives from the Form 8903 Domestic Production Activities Deduction Worksheet will transfer to Schedule K. If you enter 2, all information will transfer to Schedule K, and the Form 8903 Domestic Production Activities Deduction Worksheet will not be completed.

Gross receipts from all sources / Cost of goods sold from all sources / Deductions, expenses, and losses: Allocable to non-DPGR class of income / Deductions, expenses, and losses: Not directly allocable to any class of income / Other information

Enter the oil-related and all activities information needed to calculate the domestic production activities deduction at the partner level.

Note: These fields are not applicable if you enter 1 in the Method for computing qualified production activities income field.

Qualified production activities income (Calculated code U) / Form W-2 wages (Calculated code V)

Click the Ptr Alloc buttons to allocate the calculated amount of qualified production activities income and Form W-2 wages from the Form 8903 Domestic Production Activities Deduction Worksheet to the partners using ratios that are different from the profit-sharing percentages.

Self-Employment

Use this section to enter information for the Schedule K, Self-Employment section. ExacTax calculates each partner's net earnings (loss) from self-employment and generates worksheets for the partnership and each partner.

Net earnings (loss) from self-employment (Force)

ExacTax calculates net earnings (loss) from self-employment on the Partnership Self-Employment Worksheet. Enter an amount, including 0 (zero), to override the calculated amount. ExacTax transfers the amount to Schedule K, Net earnings (loss) from self-employment.

Notes

Net earnings (loss) from self-employment are calculated based on the type of partner. Select the following partner types in the Partner tab in the Partner Information window in Partner Data Entry.

General Partner and LLC Member (SE Income) - calculate net earnings (loss) from self-employment for all applicable items

Limited Partner and LLC Member (SE on services) - calculate net earnings (loss) from self-employment only on guaranteed payments for services

LLC Member (No SE) - does not calculate net earnings (loss) from self-employment

Gross fishing income


87

Enter the amount of gross fishing income. ExacTax adds this amount and the gross farm income entered in Form F to calculate Schedule K, Gross farming or fishing income. Individual partners may need this amount to figure net earnings from self-employment under the farm optional method on Schedule SE (Form 1040), Section B, Part II.

Notes


By default, ExacTax calculates gross farming or fishing income on Schedules K and K-1 only for partners subject to self-employment. To calculate this amount for all partners, mark the Calculate gross farm and nonfarm income for all partners field in this form.

Gross nonfarm income (Force)

ExacTax uses Form 1065, Page 1, line 3 - Gross profit plus Form 1065, Page 1, line 7 - Other income (loss) to calculate Schedule K, line 14c - Gross nonfarm income. Individual partners may need this amount to figure net earnings from self-employment under the nonfarm optional method in Section B, Part II of Schedule SE (Form 1040). Enter an amount, including 0 (zero), to override the gross nonfarm income that ExacTax calculates.

Notes


By default, ExacTax calculates gross nonfarm income on Schedules K and K-1 only for partners subject to self-employment. To calculate this amount for all partners, mark the Calculate gross farm and nonfarm income for all partners field in this form.

Calculate gross farm and nonfarm income for all partners

By default, ExacTax calculates gross farming or fishing income and gross nonfarm income on Schedules K and K-1 only for partners subject to self-employment income. Enter X in this field to calculate gross farming or fishing income and gross nonfarm income on Schedules K and K-1 for all partners.

Guaranteed payments to limited partners for services

Enter the amount of guaranteed payments to limited partners for services. You must include these amounts in the appropriate Guaranteed payments fields in Forms 4835-2, F-2, SepK, K-2, Inc, OGWell, and Rent.

Note: ExacTax allocates the amount entered to all partners based on their profit percentage. Click the Ptr Alloc button to allocate this amount to the appropriate partners.

Credits

In addition to the fields in this section, ExacTax automatically calculates and transfers the following items to the Credits section on Schedule K. Use Form K1-4 to enter credits from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Form 3468, Investment Credit (lines 9, 11i, and 13 and rehabilitation credit on lines 11e and 11f related to rental real estate activities only)


88

Form 5884, Work Opportunity Credit


Form 6765, Credit for Increasing Research Activities

Form 8586, Low-Income Housing Credit

Form 8820, Orphan Drug Credit

Form 8826, Disabled Access Credit

Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Form 8844, Empowerment Zone Employment Credit

Form 8845, Indian Employment Credit

Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips


Form 8874, New Markets Credit

Form 8881, Credit for Small Employer Pension Plan Startup Costs

Form 8882, Credit for Employer-Provided Childcare Facilities and Services

Form 8932, Credit for Employer Differential Wage Payments

Form 8941, Credit for Small Employer Health Insurance Premiums

Other credits not entered elsewhere on Form Cr


Use this section to enter partnership foreign transaction information for the Schedule K, Foreign Transactions section. Use Forms K1-4 and K1Frgn to enter information from Schedules K-1 received from other partnerships, estates, or trusts.


Enter the partnership level gross income for Schedule K, Gross income from all sources. Enter all other foreign transaction information in Form KFrgn.


89

Schedule K - AMT and Other

Schedule K - Other

K-4

6PSCHK-4 01 10/25/16 PARTNERSHIP

Tax-exempt interest income . . . . . . . . . . . . . . .

Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Look-back interest - completed LT contracts . .

Look-back interest - inc forecast method . . . . .

Interest expense for corporate partners . . . . . .

Section 453(I)(3) information . . . . . . . . . . . . . .

Section 453A(c) information . . . . . . . . . . . . . . .

Section 1260(b) information . . . . . . . . . . . . . .

Interest allocable to production expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CCF nonqualified withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unrelated business taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21D

21DOverflow # 2016

ExacTax, Inc.

Investment income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

PtrAlloc

Description (29) Ptr Alloc

Description (29) Ptr Alloc[17]





Recapture of low-income housing credit:Section 42(j)(5) partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other than Section 42(j)(5) partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recapture of other credits . . . . . . . . . . . . . . . .

Amount [15]Description (29) Ptr Alloc

Amount [16]

Amount [17]

Amount [18]

Amount [19]

Amount [20]

Amount [21]

[§ 29] Precontribution gain (loss)#

[29]

Ptr AllocPrecontribution Gain or LossCharacter of Gain or Loss (29)Description (29)

[6]

Amount [5]Description (29) Ptr Alloc

[9]

[11]

[14]

[8]

[10]

[12]

[22]

[25]

[28]

[23]

[27]

[§ 5]

[§ 15]

[§ 16]

[§ 18]

[§ 17]

[§ 19]

[§ 20]

[13]

[15]

[16]

[21]

[24]

[§ 21]

[7]

Depletion information - oil and gas . . . . . . . . . . [26]

Description (29) Ptr AllocAmount [26]

[§ 26]

[33]

Description (29) Ptr AllocAmount [33]

[§ 33]Investment income detail . . . . . . . . . . . . .

Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[32][31]


90

Form [21D] - Schedule K - AMT and Other

Overview

In addition to the fields in this form, ExacTax automatically calculates and transfers the following items to the Schedule K, Other Information sections. Use Form K1-5 to enter information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary Use Form K to enter income (loss) items that do not need to be separately stated by partner by activity.

Investment income

Investment credit recapture

Other tax-exempt income

Nondeductible expenses

Distributions of cash and other property

Other items and amounts

Other

Use this section to enter information for the Schedule K, Other Information section. Unless noted, all items in this section are reported in the statement for Schedule K, Other items and amounts.

Notes

ExacTax generates the information for Other tax-exempt income, Cash distributions, Property distributions, and Nondeductible expenses from data you enter in Form M1M2, Form M3-2, and the Transfers of Capital window in Partner Data Entry.

ExacTax generates the information for Schedule K-1, line 20, Recapture of investment credit from data you enter in Form 4255.

ExacTax generates the information for Schedule K, Other items and amounts and Schedule K-1, Other information from data you enter in Form KSup.

Tax-exempt interest income

Use the field to enter tax-exempt interest. ExacTax transfers this amount to Schedule K, Tax-exempt interest income and to Schedule M-1, Tax-exempt interest or Form 8916-A, Page 2, Tax-exempt interest income.


91

Schedule K - Foreign Transactions

PtrAlloc

KFRGN

6PSCHK-F 01 10/25/16 PARTNERSHIP

Gross income from all sources (Enter on Form K-3)

Gross income sourced at partner level . . . . . . . . [§ 5]Foreign gross income sourced at partnership level:

Deductions allocated and apportioned at partner level:Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions allocated and apportioned at partnership level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total foreign taxes:Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [§ 26]

Accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [§ 27]

Reduction in taxes available for credit . . . . . . . [§ 28]

Extraterritorial income exclusion . . . . . . . . . . . . [§ 31]

Other foreign transactions . . . . . . . . . . . . . . . . [§ 32]

Foreign trading gross receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21E

21EOverflow # 2016

ExacTax, Inc.

[30]

AmountDescription (29) Ptr Alloc[5]






[21]

[23]

[25][24]

[20]

[22]

[29]

[4]Category of income ( 1 = Passive, 2 = General, 3 = Section 901 (j), 4 = Re-sourced by treaty). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6] [7]

[18] [19]

Short-term capital gain(loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8] [9]

Long-term capital gain(loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Collectibles (28%) gain(loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net section 1231 gain(loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[10] [11]

[12] [13]

[14] [15]

Unrecaptured section 1250 gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [16] [17]

Foreign country or US possession . . . . . . . . . . . . . [1] [2]

Mutual fund or other regulated investment company (RIC) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [33]


92

Form [21E] - Schedule K - Foreign Transactions

Overview

Use this form to enter data for the Schedule K, Foreign Transactions section. Use a separate form for each country or U.S. possession and category of income for which the partnership had income or paid or accrued taxes. ExacTax completes the Foreign Transactions Worksheet when there is more than one country or U.S. possession or category of income.


Use this section to enter foreign transaction information.

Note: Enter the partnership gross income from all sources in Form K-3.

Foreign country or US possession

Select the foreign country code from the drop-down list. ExacTax enters the selected country in the text field. The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the text field.

Category of income

Select the category of income for foreign source gross income and deductions allocated and apportioned at the partnership level. ExacTax uses this information to determine where to report the foreign gross income and deductions on Schedules K and K-1.

Note: If 3 or 4 is selected, ExacTax reports this as Other category income and deductions on Schedules K and K-1.

Mutual fund or other regulated investment company (RIC) income

Enter X if the foreign income and foreign taxes were from a mutual fund or other regulated investment company (RIC). When you mark this field, ExacTax uses "RIC" as the country name on Schedule K and the partnership and partner Foreign Transaction Worksheet. Regulated investment income (RIC) does not need to be reported on a country-by-country basis.


93

Deferral of Cancellation of Debt Income ElectionCODI (2016)

Allocation of Deferred COD Income

Original issue discount (OID) deducts deferred under sec 108(i)

Debt instrument

Income deferred under section 108(i)

Deferred income included in current year incomeDeferred OID deductions allowable as a deduction in current year

Decrease in liability resulting from reacquisition

Deferred section 752 (Force)

Decr in liab treated as distr of money (section 752) in current yr

Deferred OID deductions allowable as a deduction in 2015

Deferred income included in 2015 income

Decr in liab treated as a distribution of money in prior years

Use this screen to enter income, deductions, and liabilities related to deferred cancellation of debt income from 2009 and 2010.

Amounts fromPrevious Partners

Section 752 liability classification (1 = Nonrecourse, 2 = Qualified nonrecourse, 3 = Recourse)

View > Interim Closing Annualization

Current PartnersAmounts from

**

* Enter amounts included in income or deductions due to acceleration events only

*

**Deferred income included in 2014 income

*Deferred OID deductions allowable as a deduction in 2014

1

3 4 5

6 7 8

9

10

11

12

19 20 21

22 23

24 25 26

27 28 29

30

53

54

55

56

57

58

59

60

61

62

63

64

CODI 22

2016 PARTNERSHIP16,2,0


94

Form [22] - Deferral of Cancellation of Debt Income Election

Overview

Use this form to prepare annual information statements for elections made in 2009 and 2010 that deferred the recognition of cancellation of debt income for the partnership under IRC section 108(i), Income from discharge of indebtedness and Revenue Procedure 2009-37. Use a separate Form CODI for each debt instrument for which you elected to defer the inclusion of income.

Notes

ExacTax reports information from each unit of Form CODI to the following locations on the return.

Section 108(i) Annual Information Statement (prints with the partnership return)

Partner Section 108(i) Annual information Statement (prints as an attachment to the partners' Schedules K-1 in the partner package)

Forms 1065 and 8865, Schedule K, line 20c and Schedule K-1, box 20, code X

Form 1065-B, Schedule K, line 15 and Schedule K-1, box 9, code U

When deferred income, deductions, or liabilities are recognized in the current year, ExacTax reports information from Form CODI to the following locations on the return.

Forms 1065 and 8865, Schedule K, line 11, Schedule M-1, and Schedule K-1, box 11, code F

Forms 1065 and 8865, Schedule K, line 13, Schedule M-1, and Schedule K-1, box 13, code W

Partner Basis Worksheet, Increase (decrease) in share of partnership liabilities, Other income, and Other deductions


Use this section to enter amounts related to an IRC section 108(i) election for the partnership and partner.

Debt instrument

Enter a general description of the bond, debenture, note, certificate, or any other instrument or contractual agreement that constitutes indebtedness.

Amounts from Previous Partners

Enter the amounts as reported on the initial IRC section 108(i) election attributable to partners no longer participating in the partnership. ExacTax adds these amounts to the amounts from existing partners for the partnership's Section 108(i) Annual Information Statement and Schedules K and K-1, Section 108(i) information.


Enter the amount of cancellation of debt income the partnership elected to defer that is attributable to existing partners. ExacTax adds the amount entered in this field and the amount entered in the previous partners field and then subtracts the amounts in the Deferred income included in current year income field and the Deferred income included in prior years’ income fields to determine the remaining amount of deferred income to be recognized.



95

Enter the amount of original issue discount deductions related to deferred income under IRC section 108(i) that is attributable to existing partners. ExacTax adds the amount entered in this field and the amount entered in the previous partners field and subtracts the amounts in the Deferred OID deductions allowable as a deduction in current year field and the Deferred OID deductions allowable as a deduction in a prior year fields to determine the remaining amount of deferred original issue discount deductions to be recognized.

Deferred income included in current year income

Use the field to enter the description, date, income, and deductions relating to the event that accelerates the recognition of income. This amount is also included on Schedule K, Other income (loss) and Schedule K-1, box 11, code F for Forms 1065 and 8865. For Form 1065-B, this amount is included on Schedule K, line 15 and Schedule K-1, box 9, code U.

Examples of events that accelerate the recognition of income are the death of a partner, sale of a partner's interest, and the cessation of business by the partnership.

Note: ExacTax automatically combines the 20% add back of income deferred under section 108(i) with the amount entered here before transferring the net amount to the return. Do not include the 20% add back amount in this field.

Deferred OID deductions allowable as a deduction in current year

Use the field for the Deferred income included in current year income field to enter the description, date, income, and deductions relating to the event that accelerates the recognition of the deductions. This amount is also included on Schedule K, Other deductions and Schedule K-1, box 13, code W for Forms 1065 and 8865. For Form 1065-B, this amount is included on Schedule K, line 15 and Schedule K-1, box 9, code U.

Examples of events that accelerate the recognition of the OID deductions are the death of a partner, sale of a partner's interest, and the cessation of business by the partnership.

Note: ExacTax automatically combines the 20% add back of deferred OID deductions under section 108(i) with the amount entered here before transferring the net amount to the return. Do not include the 20% add back amount in this field.

Deferred income included in prior years’ income

Enter the deferred IRC section 108(i) income included in prior years that is attributable to existing partners. ExacTax subtracts the amount entered in this field for both previous and existing partners and the amount entered in the Deferred income included in current year income field from the amount entered in the Income deferred under section 108(i) fields to determine the remaining amount of deferred income to be recognized.

Deferred OID deductions allowable as a deduction in a prior year

Enter the deferred IRC section 108(i) original issue discount deductions allowable as a deduction in prior years that are attributable to existing partners. ExacTax subtracts the amount entered in this field for both previous and existing partners and the amount entered in the Deferred OID deductions allowable as a deduction in current year field from the amount entered in the Original issue discount (OID) deducts deferred under sec 108(i) fields to determine the remaining amount of deferred original issue discount deductions to be recognized.

Decrease in liability resulting from reacquisition

Enter the decrease in liability resulting from the reacquisition of the debt that is attributable to existing partners. If you leave the Deferred section 752 (Force) field blank, ExacTax uses the amount entered in this field for both previous and existing partners and subtracts the amounts entered in the Decr in liab treated as distr of money (section 752) in current yr field and the Decr in liab treated as a distribution of money in prior years fields to determine the remaining amount of deferred IRC section 752 to be recognized.


96

Decr in liab treated as distr of money (section 752) in current yr

Enter the decrease in liability treated as a distribution of money in the current year resulting from the reacquisition of the debt instrument. ExacTax subtracts the amount entered in this field and the Decr in liab treated as a distribution of money in prior years fields from the amount entered in either the Deferred section 752 (Force) fields or the Decrease in liability resulting from reacquisition fields to determine the remaining amount of deferred IRC section 752 to be recognized.

Note: If the partner did not provide this information to the partnership, mark the Section 752 information not provided checkbox in the Federal tab in the Partner Information window in Partner Data Entry. ExacTax prints "Partner did not provide the information necessary to report these amounts" in the partner's annual information statement.

Decr in liab treated as a distribution of money in prior years

Enter the decrease in liability treated as a distribution of money in prior years resulting from the reacquisition of the debt instrument that is attributable to existing partners. ExacTax subtracts the amount entered in this field for both previous and existing partners and the amount entered in the Decr in liab treated as distr of money (section 752) in current yr field from the amount entered in either the Deferred section 752 (Force) fields or the Decrease in liability resulting from reacquisition fields to determine the remaining amount of deferred IRC section 752 to be recognized.

Note: If the partner did not provide this information to the partnership, mark the Section 752 information not provided checkbox in the Federal tab in the Partner Information window in Partner Data Entry. ExacTax prints "Partner did not provide the information necessary to report these amounts" in the partner's annual information statement.

Deferred section 752 (Force)

ExacTax automatically uses the amount entered in the Decrease in liability resulting from reacquisition fields as the amount of deferred IRC section 752. Enter an amount, including 0 (zero), if you want to use an amount that is different from the calculated amount.

Notes

A partner's deferred IRC section 752 amount may not exceed the lesser of the partner's deferred amount or the gain that the partner would recognize in the year of reacquisition under IRC section 731.

ExacTax uses the amount entered in this field with the amounts in the Decr in liab treated as distr of money (section 752) in current yr field and the Decr in liab treated as a distribution of money in prior years fields to determine the remaining amount of deferred IRC section 752 to be recognized.

Section 752 liability classification

If you leave the Section 752 information not provided checkbox in the Federal tab in the Partner Information window in Partner Data Entry blank, ExacTax adjusts recourse liabilities on the Partner Basis Worksheet by the remaining deferred IRC section 752 distributions. Enter 1 to adjust nonrecourse liabilities, or enter 2 to adjust qualified nonrecourse liabilities.


97

Apportionment InformationView

6PAPRTN 01 10/25/16

Property Component

PARTNERSHIP

Property

Everywhere (Force)

Buildings at beginning of yearBuildings at end of year

Less: Accumulated Depreciation – BOYLess: Accumulated Depreciation – EOY

Leasehold Improvements – BOYLeasehold Improvements – EOY


Machinery – BOYMachinery – EOY


Equipment – BOYEquipment – EOY


Transportation/Delivery Equipment – BOYTransportation/Delivery Equipment – EOY

Less: Accumulated Depreciation – BOYLess: Accumulated Depreciation –EOY

Furniture and Fixtures – BOYFurniture and Fixtures – EOY


Construction in Progress – BOYConstruction in Progress – EOYOther Property/Assets – BOYOther Property/Assets – EOY


Land – BOYLand – EOYInventories – BOYInventories – EOYSupplies – BOYSupplies – EOYRent – Annual Expense

State State State

Payroll Component

Payroll

Everywhere (Force)

Salaries and WagesCost of Goods Sold Salaries and Wages

State State State

Sales Component

Sales

Destination Sales w/in State/Gross ReceiptsLess: Returns and Allowances

Less: Returns and AllowancesDestination Sales from Outside State

Origin Sales Shipped to US GovernmentLess: Returns and Allowances

Less: Returns and AllowancesOriginal Sales Shipped to Non-taxable Juris

Receipts for Services PerformedInterestRental of PropertyRoyaltiesOther Revenue Receipts

Everywhere (Force)State State State

2016 25

ExacTax, Inc. 25


98

Form [25] - Apportionment Form Combination Tables

Overview This document contains the Apportionment Form Combination Tables for many states, cities and other returns. These tables describe how fields from the Apportionment Information form and state, city, and other return fields are combined on the apportionment form, Form VIEW [25]. Also see New Jersey Form VIEWNJ [NJ3] for additional apportionment information.

Arizona

Arizona Property Factor Form Field Property Component Inventories Inventories – BOY (averaged) Inventories – EOY Depreciable assets Buildings – BOY (averaged) Buildings – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Machinery – BOY Machinery – EOY Equipment – BOY Equipment – EOY

Transportation / Delivery Equipment – BOY

Transportation / Delivery Equipment – EOY

Furniture and Fixtures – BOY Furniture and Fixtures – EOY Land(averaged) Land – BOY Land – EOY Other assets (averaged) Construction in Progress – BOY Construction in Progress – EOY Other Property / Assets – BOY Other Property / Assets – EOY Supplies – BOY Supplies – EOY Minus: Construction in Construction in Progress – BOY Progress (averaged) Construction in Progress – EOY Rented property Rent – Annual Expense (times 8) (capitalized)

Arizona Payroll Factor Form Field Payroll ComponentTotal wages, salaries, Salaries and Wages commissions, and other Cost of Goods Sold Salaries and Wages compensation to Employees Arizona Sales Factor

Form Field Sales Component


99

Sales delivered or Destination Sales w/in State / Gross Receipts

shipped to Arizona Less: Returns and Allowances Purchasers Destination Sales from Outside State Less: Returns and Allowances Other gross receipts Receipts for Services Performed Interest Rental of Property Royalties Other Revenue / Receipts Total sales and other Destination Sales w/in State / Gross

Receipts gross receipts Less: Returns and Allowances (Everywhere) Destination Sales from Outside State Less: Returns and Allowances Receipts for Services Performed Interest Rental of Property Royalties Other Revenue / Receipts

California

California Property Factor Form Field Property ComponentInventory Inventories – BOY Inventories – EOY Buildings Buildings – BOY Buildings – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Machinery and equipment

Machinery – BOY Machinery – EOY

Equipment – BOY Equipment – EOY Transportation / Delivery Equipment – BOY Transportation / Delivery Equipment – EOY Furniture and fixtures Furniture and Fixtures –

BOY Furniture and Fixtures – EOY Land Land – BOY Land – EOY Other tangible assets Other Property / Assets –

BOY Other Property / Assets – EOY Rented property used in the business Rent – Annual Expense (times 8)


100

California Payroll Factor Form Field Payroll Component Payroll Salaries and Wages Cost of Goods Sold Salaries and Wages California Sales Factor Form Field Sales Component Use gross receipts less Destination Sales w/in State / Gross

Receipts returns, and allowances Less: Returns and Allowances Destination Sales from Outside State Less: Returns and Allowances Origin Sales Shipped to US Government Less: Returns and Allowances Origin Sales Shipped to Non-taxable Juris Less: Returns and Allowances Shipped from outside Destination Sales from Outside State California Less: Returns and Allowances Shipped from within Destination Sales w/in State / Gross

Receipts California Less: Returns and Allowances The United States Origin Sales Shipped to US Government Government Less: Returns and Allowances Purchasers in a state Origin Sales Shipped to Non-taxable Juris where the taxpayer is Less: Returns and Allowances not taxable Other gross receipts Receipts for Services Performed Interest Rental of Property Royalties Other Revenue / Receipts

Colorado Colorado Property Factor Form Field Property Component Inventories Inventories – BOY Inventories – EOY Supplies – BOY Supplies – EOY Land Land – BOY Land – EOY Buildings and equipment Buildings – BOY Buildings – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Machinery – BOY Machinery – EOY Equipment – BOY Equipment – EOY Transportation / Delivery – BOY


101

Transportation / Delivery – BOY Other property (explain) Furniture and Fixtures – BOY Furniture and Fixtures – EOY Other Property – BOY Other Property EOY Leased property (attach schedule) Rent – Annual Expense (times 8) Colorado Payroll Factor Form Field Payroll ComponentColorado compensation Salaries and Wages paid during the taxable year Cost of Goods Sold Salaries and Wages Colorado Sales Factor Form Field Sales ComponentGross sales of property Destination Sales w/in State / Gross

Receipts Destination Sales from Outside State Origin Sales Shipped to US Government Origin Sales Shipped to Non-taxable Juris Gross sales of services Receipts for Services Performed Rents and royalties Rental of Property Royalties Other revenue (explain) Interest Other Revenue / Receipts

Connecticut

Connecticut Property Factor Form Field Property ComponentTangible personal Machinery – BOY property owned or Machinery – EOY rented Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Transportation / Delivery Equipment –

BOY Transportation / Delivery Equipment –

EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Other Property / Assts – BOY


102

Other Property / Assts – EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Inventories – BOY Inventories – EOY Real property rented Rent – Annual Expense (times 8) from others

Hawaii

Hawaii Property Factor Form Field Property ComponentLand Land – BOY Land – EOY Buildings Buildings – BOY Buildings – EOY Inventories Inventories – BOY Inventories – EOY Leasehold interests Leasehold Interests – BOY (Tab) (times 8) Leasehold Interests – EOY (Tab) (times 8) Rented property Rent – Annual Expense (times 8) Other property Leasehold Improvements – BOY Leasehold Improvements – EOY Machinery – BOY Machinery – EOY Equipment – BOY Equipment – EOY Transportation / Delivery Equipment –


EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Other Property / Assets – BOY Other Property / Assets – EOY Hawaii Payroll Factor Form Field Payroll Component Total compensation Salaries and Wages Cost of Goods Sold Salaries and Wages Hawaii Sales Factor

Form Field Sales Component Total sales Destination Sales w/in State / Gross

Receipts Less: Returns and Allowances Destination Sales from Outside State Less: Returns and Allowances Origin Sales Shipped to US Government


103

Less: Returns and Allowances Origin Sales Shipped to Non-taxable Juris Less: Returns and Allowances Receipts for Services Performed

Massachusetts

Massachusetts Property Factor Form Field Property Component Property owned Buildings – BOY (averaged) Buildings – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Machinery – BOY Machinery – EOY Equipment – BOY Equipment – EOY Transportation / Delivery Equipment –


EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Other Property / Assets – BOY Other Property / Assets – EOY Land – BOY Land – EOY Inventories – BOY Inventories – EOY Rented property Rent – Annual Expense (times 8) (capitalized) Massachusetts Payroll Factor Form Field Payroll Component Total payroll Salaries and Wages Cost of Goods Sold Salaries and Wages

Massachusetts Sales Factor Form Field Sales Component Tangibles Destination Sales w/in State / Gross

Receipts Less: Returns and Allowances Destination Sales from Outside State Less: Returns and Allowances Origin Sales Shipped to US Government Less: Returns and Allowances Origin Sales Shipped to Non-taxable Juris


104

Less: Returns and Allowances Services Receipts for Services Performed Rents and royalties Rental of Property Royalties Other Other Revenue / Receipts

New Jersey

New Jersey Property Factor – Business Allocation Form Field Property Component Real Property Owned Buildings – BOY Buildings – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Land – BOY Land – EOY Real and Tangible Property Rented Rent – Annual Expense (times 8) Tangible Personal Machinery – BOY Property Owned Machinery – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Transportation / Delivery Equipment –


EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Other Property / Assets – BOY Other Property / Assets – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Form Field Property Component Inventories – BOY Inventories – EOY Supplies – BOY Supplies – EOY


105

New Jersey Payroll Factor – Business Allocation Form Field Payroll Component Wages, Salaries and Other Personal Salaries and Wages Compensation Paid During the Year Cost of Goods Sold Salaries and Wages New Jersey Sales Factor – Business Allocation Form Field Sales Component Total Receipts from All Destination Sales w/in State / Gross

Receipts Sales, Services and Destination Sales from Outside State Other Business Origin Sales Shipped to US Government Transactions Origin Sales Shipped to Non-taxable Juris Receipts for Services Performed Rental of Property Royalties Interest Other Revenue / Receipts New Jersey Property Factor – Corporation Allocation Form Field Property Component Land Land – BOY Land – EOY Buildings and other Buildings – BOY Improvements Buildings – EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Less Accumulated Depreciation – BOY Less Accumulated Depreciation – EOY Machinery and Machinery – BOY Equipment Machinery – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Transportation / Delivery Equipment –


EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Inventories Inventories – BOY Inventories – EOY All other Tangible Furniture and Fixtures – BOY Personally Owned Furniture and Fixtures – EOY Less: Accumulated Depreciation – BOY


106

Less: Accumulated Depreciation – EOY Supplies – BOY Supplies – EOY Property rented or Leased Rent – Annual Expense All other Property Used Other Property / Assets – BOY

Other Property / Assets – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

New Jersey Payroll Factor – Corporation Allocation Form Field Payroll Component Wages, salaries and Salaries and Wages other personal service Cost of Goods Sold Salaries and Wages Compensation New Jersey Sales Factor – Corporation Allocation Form Field Sales Component Receipts from sales of tangible personal Destination Sales w/in State / Gross

Receipts property shipped to points within NJ Destination Sales from Outside State Receipts from services Receipts for Services Performed performed in NJ Receipts from rentals of property situated in NJ Rental of Property Receipts from royalties Amount from NJ for for the use in NJ of Royalties for patents and copyrights used

in NJ patents and copyrights All other business Royalties, less amount entered in the above receipts earned in NJ Patents and copyrights field Interest Other Revenue / Receipts Total receipts from all Destination Sales w/in State / Gross

Receipts sales, services, rentals, Destination Sales from Outside State royalties and other Origin Sales Shipped to Non-Taxable Juris business transactions Origin Sales Shipped to US Government Everywhere Receipts for Services Performed Rental of Property Royalties Interest Other Revenue / Receipts Receipts not sourced Receipts not sourced from Schedule J, Part IV

New York

New York Property Factor Form Field Property Component Real property owned Land – BOY


107

Land – EOY Buildings – BOY Buildings – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Real property rented from others Rent – Annual Expense (times 8) Tangible personal Inventories – BOY property owned Inventories – EOY Machinery – BOY Machinery – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Transportation / Delivery Equipment –


EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Other Property / Assets – BOY Other Property / Assets – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY New York Payroll Factor Form Field Payroll Component Payroll percentage Salaries and Wages Cost of Goods Sold Salaries and Wages New York Sales Factor Form Field Sales Component Gross income Destination Sales w/in State / Gross

Receipts Percentage Destination Sales from Outside State Origin Sales Shipped to US Government Origin Sales Shipped to Non-taxable Juris Receipts for Services Performed Other Revenue / Receipts


108

New York – New York City New York City Property Factor Form Field Property Component Business real property Owned

Land – BOY Land – EOY Buildings – BOY Buildings – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

rented from others Rent – Annual Expense (times 8)

Business tangible personal property owned Inventories – BOY Inventories – EOY Machinery – BOY Machinery – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Transportation / Delivery Equipment – BOY Transportation / Delivery Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

Business tangible personal property owned (Continued)

Furniture and Fixtures – BOY Furniture and Fixtures – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Other Property / Assets – BOY Other Property / Assets – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

New York City Payroll Factor Form Field Payroll Component Wages, salaries & other personal service compensation paid to employees during the year

Salaries and Wages Cost of Goods Sold Salaries and Wages


109

New York City Sales Factor Form Field Sales Component Gross sales of merchandise or charges for services during the Year

Destination Sales w/in State / Gross Receipts Destination Sales from Outside State Origin Sales Shipped to US Government Origin Sales Shipped to Non-taxable Juris Receipts for Services Performed Other Revenue / Receipts

New York – Yonkers Yonkers Property Factor Form Field Property Component Real property owned Land – BOY

Land – EOY Buildings – BOY Buildings – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Leasehold Improvements – BOY Leasehold Improvements – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

Real property rented from others Rent – Annual Expense (times 8) Tangible personal property owned Inventories – BOY

Inventories – EOY Machinery – BOY Machinery – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Equipment – BOY Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Transportation / Delivery Equipment – BOY Transportation / Delivery Equipment – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Furniture and Fixtures – BOY Furniture and Fixtures – EOY Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY Other Property / Assets – BOY Other Property / Assets – EOY


110

Less: Accumulated Depreciation – BOY Less: Accumulated Depreciation – EOY

Yonkers Payroll Factor Form Field Payroll Component Payroll percentage Salaries and Wages Cost of Goods Sold Salaries and Wages

Yonkers Sales Factor

Form Field Sales Component Gross income Percentage

Destination Sales w/in State / Gross Receipts Destination Sales from Outside State Origin Sales Shipped to US Government Origin Sales Shipped to Non-taxable Juris Receipts for Services Performed Other Revenue / Receipts


111

Partner's Percentages

1 = Nonrecourse liability-at risk2 = Nonrecourse liability-not at risk3 = Qualified nonrecourse-at risk4 = Qualified nonrecourse-not at risk

5 = Recourse - at risk6 = Recourse - not at risk7 = Do not allocate to K-1’s

K1Misc Partner's Schedule K-1 Items

6PK1MISC 02 11/28/16 PARTNERSHIP

Profit sharing - beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Print options:

Profit sharing - ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loss sharing - beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loss sharing - ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ownership of capital - beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ownership of capital - ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6][7][8][9]

[10][11]

PtrAlloc

Deductions - beginning (8865 only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]Deductions - ending (8865 only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [13]

[35][36][37][38][39][40][41][42]

Description

Overflow # 2016 27

ExacTax, Inc.

Print supplemental liability schedule? . . . . . . . . . . . . . . . . . . . . . . .(1 = Not at risk (Default), 2 = Always, 3 = Never) [2]Accounts payable rounding adjustment classification (enter code) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3]

Total depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Information

Capital account accounting method . . . . . . . . . . .Other (Specify) (24) . . . . . . . . . . . . . . . . . . . . . . .[15]

[14]

Corporate ACE Adjustments

AMT Depreciation

Force to all K-1’s . . . . . . . . . . . . . . . . . (1 = Only for corporate/partnership partners (Default), 2 = Always, 3 = Never) [33]

Post - 1993 property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [19]ACE Depreciation

Post 89, pre 1994 property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [21]Pre 1990 MACRS property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [23]Pre 1990 ACRS property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[25]Section 168(f)(1)-(4) property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27]Other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [29]Basis adjustment on disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [31]

PtrAlloc

[17] [18]

[22][24][26][28][30][32]

(1 = Tax Basis, 2 = GAAP, 3 = Sec 704(b) book)

[20]

Property contributed with built-ingain or loss . . . . . . . . . . . . . . . .

#[16]

Ptr AllocDescription (36) Built-In Gain / Loss

[§16]

Note: Form 1065 {1} zip 47 MUST be checked to print allocations

Partner's Share of Liabilities

Date Contribution

Print activity worksheets (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [34]

Display Schedule K-1 partner percentages using the partnership's tax year . . . . . . . . . . . . . . . . . . . . . . . . . . [4]Compute partner end-of-year ownership percentage based on ending capital . . . . . . . . . . . . . . . . . . . . . . . . [5]

Text entered in the description fields will be used on the paper copied only. It will not be included in the electronic file.


112

Form [27] - Partner Schedule K-1 Items (1065)

Overview

Use this form to enter information to prepare Schedule K-1s for the partners.

Partner Information

Use this section to access the Partner Data Entry windows to enter the partner names; addresses; profit, loss, and ownership percentages; and other partner-related information.

Partner names, addresses, and percents

Click the button to access the Partner Data Entry windows to enter the partner names; addresses; profit, loss, and ownership percentages; and other partner-related information. You can also choose View > Partner Information or press CTRL+R to access Partner Data Entry.

Partner Share of Liabilities

Use this section to enter information for Schedule K-1, Item K.

Print supplemental liability schedule?

By default, ExacTax generates the at-risk and not at-risk supplemental schedule on Schedule K-1, Other information when you allocate a not at-risk liability to a partner. Use the drop-down list to force ExacTax to always print or to never print the schedule.

Accounts payable rounding adjustment classification

By default, ExacTax automatically classifies the accounts payable rounding adjustment amount as a recourse liability that is at-risk. Enter the accounts payable rounding adjustment code directly or select the code from the drop-down list to classify the adjustment as a different type of liability.

Partner Percentages

ExacTax uses the information you enter in this section to determine the percentages that print on Schedule K-1, Item J.

Display Sch K-1 percents using partnership tax year

ExacTax defaults the beginning-of-year and end-of-year profit, loss, and capital percentages for Schedule K-1, Item J to the first and last day a partner owns an interest in the partnership, using information entered in the Changes of Ownership window in Partner Data Entry. For example, if a partner joins the partnership after the beginning of the partnership's tax year, the beginning-of-year percentages displayed on Schedule K-1 will be the partner's percentages as of the day the partner joins the partnership, not 0 percent. Enter X to display the partners' percentages as of the beginning and end of the partnership's tax year. In the previous example, if you enter X, the beginning-of-year percentages on Schedule K-1, Item J for the new partner will all be 0 percent.

Partner's ownership percent based on ending capital

Enter X to automatically calculate Schedule K-1, Item J, Capital based on each partner's ending capital account balance.

ExacTax calculates the end-of-year capital percentage as follows.


113

If all partners' ending capital balances are greater than or equal to zero, ExacTax calculates the capital percentage for each partner by dividing each partner's share of ending capital by the sum of ending capital for all partners.

If any partner's ending capital is less than zero, ExacTax calculates the capital percentage for each partner based on whether the partner's ending capital is greater than or less than zero.

For any partner whose ending capital is less than or equal to zero, ExacTax calculates the capital percentage as 0.000000 percent.

For any partner whose ending capital is greater than zero, ExacTax calculates the capital percentage by dividing the partner's share of ending capital by the sum of ending capital for all partners whose ending capital is greater than zero.

Print options: Profit sharing - beginning / … / Loss sharing - ending

Note: Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.

Print options: Ownership of capital - beginning / ending

By default, ExacTax displays the ownership of capital percentages based on the first and last day a partner owns an interest in the partnership, using information entered in the Changes of Ownership window in Partner Data Entry.

If the Partner's ownership percent based on ending capital field in Form 1065 is marked, ExacTax calculates the end-of-year capital percentage based on the partners' share of ending capital as of the last day of the partnership's tax year.

Note: Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.

Print options: Deductions - beginning / ending

Notes

Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.

These fields apply only to Form 8865.

Other Information

Use this section to enter information for Schedule K-1, Items L and M.

Capital account accounting method

Enter 1 for Tax basis, 2 for GAAP, or 3 for Section 704(b) book, or enter the other capital account accounting method description in the Other (specify) field.

Note: This method does not change how ExacTax calculates the capital accounts on Schedule K-1.


114

Other (specify)

Enter the description of the other capital account accounting method used. ExacTax transfers the data from this field to Schedule K-1, Partner's capital account analysis only if the Capital account accounting method field is blank.

Note: This method does not change how ExacTax calculates the capital accounts on Schedule K-1.

Property contributed with built-in gain or loss

Use the field to enter information for property contributed by a partner with built-in gain or loss. ExacTax marks the Yes checkbox on Schedule K-1, Item M and prints a statement for each applicable partner.

Print activity worksheets (Force)

If the partnership has 2 or more activities, ExacTax automatically completes the Schedule K Activity and Partner’s Schedule K-1 Activity worksheets to distinguish income, deductions, credits, and alternative minimum tax (AMT) items by activity (Income & Deductions, Farm, Farm Rental, Rent and Royalty, Passthrough Schedule K-1, and Miscellaneous) for partners for use in completing their return. If the partnership has only one activity, the worksheets will not print. Enter 1 for Yes or 2 for No to force the printing of the worksheets.

Primary activity and unit for data share by activity

Enter the partnership’s primary activity and unit number. When data sharing by activity into 1040 and 1120, ExacTax uses this information to determine which unit will be the primary unit for the combined basis calculation.

Note: ExacTax allows you to share Schedule K-1 financial data among all 1040, 1041, 1120, and 1065 clients automatically. (ExacTax can transfer financial data into 1120C and 1065-B clients, but not out of these clients.


ExacTax transfers the data in this section from the Form 51. This information prints for corporate and partnership partners on Schedule K-1, Other information.

Force to all K-1's

By default, the corporate ACE adjustment schedule prints for corporate and partnership partners. You can force ExacTax to print the schedule for all or none of the partners by entering the appropriate code in this field.


115

Description

D

[§ 1] Capital Gain and Losses

6PSCHD 01 10/25/16

DateAcquired

DateSold

SalesProceeds Cost / Basis

†Force

Loss Gain

[§ 3] Long-term capital gain distributions

#

† 1 = Short-term, 2 = Long-term, 3 = 28%, 4 = Section 1202 - 50%,5 = Section 1202 -60%, 6 = Section 1202 - 75%,7 = Section 1202 - 100%, 8 = Floating-NAV money market fund

PARTNERSHIP

28% rate capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4]Section 1202 capital gain distributions - 50% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 30

ExacTax, Inc. 30

Unrecaptured Section 1250 gain from sale/exchange of partnership interest . . . . . . . . . . . . . . . .

Section 1202 capital gain distributions - 60% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[10]

Description (36) Total Distributions 28% rate Sec 1202 -60%

#

[5][6]

[9]

Capital Gain and Losses - Schedule D

Form*8949Type

1099B**Errors

** 1 = Box 2 Type of gain or loss is correct2 = Box 1e Cost or other basis is incorrect3 = Boxes 1e and 2 are incorrectBoxes 1e and 2 are correct (Default)

*** N = Received 1099-B or 1099-S as a nominee for actual ownerD = Accrued market discount in box 1gQ = Excluded gain on qualified small business stockX = Excluded gain on DC Zone assets or qualified community assetsR = Postponed gain (empowerment zone, sale to ESOPs, etc)W = Nondeductible loss from wash saleL = Nondeductible loss from other than wash saleE = Selling expenses or option premiums not on 1099-B or 1099-SM = Multiple transactions reported on a single rowO = Adjustment not explained with any other code

MN = Code M and N (Received 1099 as nominee for actual owner)MD = Code M and D (Accrued market discount in box 1g)MQ = Code M and Q (Sold/exchanged qualified small business stock)MX = Code M and X (Excluded gain DC Zone/qualified community assets)MW= Code M and W (Nondeductible loss from wash sale)ML = Code M and L (Nonbusiness loss other than wash sale)ME = Code M and E (Selling expenses/option prem not on 1099-B or 1099S)MC = Code M and C (Disposed of collectibles)MO = Code M and O (Adjustment not explained with any other code)

Adj toGain(Loss)

***Adj

Code

Undistributed long-term capital gains from Form 2439 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [2]

Section 1202 capital gain distributions - 75% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [7]

Sec 1202 -75%

* 1 = Box A or D - Reported on 1099-B showing basis wasreported to IRS

2 = Box B or E - Reported on 1099-B showing basis was notreported to IRS3 = Box C or F - Not reported on 1099-B4 = Reported directly Sch D

Sec 1202 -100%

Sec 1202 -50%

Section 1202 capital gain distributions - 100% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8]


116

Form [30] - Capital Gains and Losses

Overview

Use this form to enter capital gain and loss information for Form 8949, Sales and Other Dispositions of Capital Assets and Schedule D, Capital Gains and Losses, and section 1202 information for Schedule K, Other income (loss).

Capital Gains and Losses

Use this section to enter capital gain and loss information for Form 8949 and Schedule D.

Note: Use the Record of stock purchases field in Form Info in the General folder to record any stock purchases. Later, when the stock is sold, you can enter the Date Sold and the Sales Proceeds in the field for the Record of stock purchases field, and ExacTax automatically transfers the information from Form Info to the Detail schedule field on this form.

Detail schedule

The following describes some of the columns in the attached field.

1099B Errors: Identify transactions that received a Form 1099-B with an incorrect box 3 cost or other basis and/or box 1c type of gain or loss (short-term or long-term).

Enter 1 if the basis reported on Form 1099-B, box 3 is incorrect. ExacTax prints code "B" on Form 8949, column (f), Code(s) from instructions. Enter the basis as reported on Form 1099-B in the Cost or Basis column, and enter the difference between the correct basis and the basis reported to the IRS in the Adj to Gain (Loss) column.

Enter 2 if the type of gain or loss (short-term or long-term) reported on Form 1099-B, box 1c is incorrect. ExacTax prints code "T" on Form 8949, column (f), Code(s) from instructions.

Enter 3 if the basis reported in box 3 is incorrect and the type of gain or loss (short-term or long-term) reported in box 1c is incorrect. ExacTax prints codes "BT" on Form 8949, column (f), Code(s) from

instructions. Enter the basis reported to the IRS on Form 1099-B in the Cost or Basis column, and enter the difference between the correct basis and the basis reported to the IRS in the Adj to Gain (Loss)

column.

Date Acquired / Date Sold / Holding Period / Treatment Force: ExacTax determines the holding period of an asset based on the dates you enter in these columns. If you leave the date columns blank, ExacTax defaults to the short-term holding period. To force the sale as short-term, long-term, 28 percent rate, section 1202 - 50% exclusion, section 1202 - 60% exclusion, section 1202 - 75% exclusion, or section 1202 - 100% exclusion, enter a code in the Treatment Force column.

Note: If you choose code 4, Section 1202 - 50% exclusion, code 5, Section 1202 - 60% exclusion, code 6, Section 1202 - 75% exclusion, or code 7, Section 1202 – 100% exclusion, in the Treatment Force column, ExacTax does not list the transaction on Schedule D but, instead, includes the amount on Schedule K, Other income.

Adj to Gain (Loss): Enter an amount to adjust the amounts reported to the IRS on Form 1099-B or 1099-S, to exclude or postpone a capital gain, to report a disallowed loss, etc. If you enter an adjustment in this column, you must also select a code in the Adj Code column or select code 1 or 3 in the 1099B Errors column.

Adj Code: Enter a code for the adjustment amount you enter in the Adj to Gain (Loss) column. If you enter an adjustment amount in the Adj to Gain (Loss) column, you must enter an adjustment code. Enter one of the following codes, or select the code from the drop-down list.


117

N Received 1099-B or 1099-S as a nominee for the actual owner

D Accrued market discount in box 1g

Q Excluded gain on qualified small business stock

X Excluded gain on DC Zone assets or qualified community assets

R Postponed gain on rollover (e.g. QSB or publicly traded securities.)

W Nondeductible loss from a wash sale

L Nondeductible loss from other than wash sale

E Selling expenses or option premiums not on 1099-B or 1099-S

M Multiple transactions reported on a single row

O Adjustment not explained with any other code

You can use the 1099B Errors and the Adj Code columns to report multiple codes for a transaction. For example, to exclude a portion of the gain on a transaction that received Form 1099-B with an incorrect basis and type of gain or loss, enter the following in the field. ExacTax will print "BTX" on Form 8949, column (f), Code(s) from instructions.

1099B Errors: 3, Basis and type of gain or loss shown on 1099-B are incorrect

Adj Gain (Loss): Amount to be excluded (enter as a negative amount)

Adj Code: X, Excluded gain on DC Zone assets or qualified community assets

Gain (Loss): ExacTax automatically calculates the gain or loss by subtracting the amount entered in the Cost or Basis column from the amount entered in the Sales Proceeds column and adding the amount entered in the Adj to Gain (Loss) column.

Long-term capital gain distributions

Use the field to enter the total long-term capital gain distributions. Include 28 percent rate distributions and IRC section 1202 distributions in the total distributions amount.

28% rate capital gain distributions

Use the field for the Long-term capital gain distributions field to enter the portion of long-term capital gain distribution attributable to collectibles. Include this amount in the total long-term capital gain distributions amount. ExacTax transfers this amount to Schedule K, Collectibles (28%) gain (loss).

Section 1202 capital gain distributions - 50% exclusion / 60% exclusion / 75% exclusion / 100% exclusion

Use the field for the Long-term capital gain distributions field to enter the portion of long-term capital gain distribution attributable to IRC section 1202 gain subject to the 50 percent, 60 percent, 75 percent, and 100 percent exclusion at the partner level. Include this amount in the total long-term capital gain distributions amount. ExacTax does not include the amount on Schedule D, but instead transfers the amount to Schedule K, Other income.

Unrecaptured section 1250 gain from sale or exchange of partnership interest

Enter the unrecaptured section 1250 gain from the sale or exchange of partnership interest. ExacTax does not include the amount on Schedule D, but instead transfers the amount to Schedule K, Unrecaptured section 1250 gain.


118

Federal Amount

Income

Special Allocation

Expenses

RENT Rent and Royalty Property

6PRENT 01 10/25/16

Activity unit number . . . . . .

Type of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Rental Real Estate, 2 = Other rental (Default), 3 = Royalty )

Foreign postal code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Include net income/loss in calculation for self-employment income (Rental activities only) . . . . . . . . . . . . . . . . . . . . . . .

[1]

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Auto & travel . . . . . . . . . . . . . . . . . . . . . . . . . .

Commissions . . . . . . . . . . . . . . . . . . . . . . . . . .Cleaning & maintenance . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal & professional . . . . . . . . . . . . . . . . . . . .

Property Description . .

[13]

Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross royalties . . . . . . . . . . . . . . . . . . . . . . . .

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depreciation (Force) . . . . . . . . . . . . . . . . . . .

Description (25) Amount [40]#

Sale of property (Force) (rentals only) . . . . . .

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[22]

Wages & salaries . . . . . . . . . . . . . . . . . . . . . .

[4]

[§ 40] Other

Include net income/loss in calculation for Section 179 business income (Rental real estate activities only) . . . . . . . . . . .[19]

Disposition of activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meals/entertainment (100% subject to 50% limit)

Meals (100% subject to DOT 80% limit) . . . . . . .

Amortization (Force) . . . . . . . . . . . . . . . . . . . . .

Guaranteed payments:

PARTNERSHIP

Specially allocate . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 31

ExacTax, Inc. 31

Description (25) Amount [36]#[§ 36] Taxes

CARent CA Rent and Royalty Expenses

Description (25)#[§ 34] Taxes (Adjusts line 21 and Schedule M-1)

TypeCode

Enter the corresponding line number from ZIP 36.The description and amount are automatically retrieved.Type code: N = Nondeductible. D = Deductible

[2]

[20][21]

[26][27]

[30][31][32][33][34][35]

[37][38][39]

[41][42][43]

[44]

[23]

[24]

[25]

Address. . . . . . . . . . . . . . . [5]

[6]City, state, zip code . . . . . . [7] [8]

Foreign Province or state (if foreign, leave state and zip code blank). . . . . . . . . . . . . . . . . . . . . . . . . . [9]

[10]

[11]Foreign country code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[14]Type of property . . . . . . . . . . . . . (1 = Single family, 2 = Multi-family, 3 = Vacation/short-term rent, 4 = Commercial, 5 = Land,

6 = Royalties, 7 = Self-rental) (If other, specify) [15]

[16]

[17]

Number of days rented at fair rental value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of personal use days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Personal use percentage, if personal use test met (Force) (Expenses only) . . . . . . . . . . . . . . . . . . . . . . .(xxx.xxxx) [18]

Lease inclusion (Force). . . . . . . . . . . . . . . .[28]

Health insurance. . . . . . . . . . . . . . . . . . . . .Pensions and IRAs. . . . . . . . . . . . . . . . . . . [45]

Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [46]


119

Form [31] - Rent and Royalty Properties

Overview

Use this form to enter information for rental real estate properties, other rental properties, and royalty properties. ExacTax transfers rental real estate properties to Form 8825 and other rental properties and royalties directly to Schedule K.

ExacTax includes all three types of properties on a separate Rent and Royalty Schedule, detailing income, expenses, and net gain (loss).

General Questions

ExacTax uses the information in this section for classification and calculation purposes.

Unit


Property description

The property description that you enter in these fields appears on the Rental and Royalty Schedule and Form 8825. If you entered the address of the rent or royalty property as the description, use the Address field as the second line of the address or leave that field blank. This field is mandatory.

Specially allocate

Click the Ptr Alloc button to specially allocate this rental activity to partners using ratios that are different from the profit-sharing percentages. You do not need to use this field unless the partnership has an allocation for this rental that differs from the profit-sharing percentages.

State

Enter the state postal code for the state in which the rental or royalty property is located. The state postal code allows certain state-specific versions of ExacTax to determine in-state and out-of-state income.

Foreign country

Select the foreign country code from the drop-down list in the Foreign country field. ExacTax enters the selected country in the text field. The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the text field.

Type of activity

Enter the appropriate activity type code in the field provided. The codes available are listed in the following table and in the drop-down list.

Code Description Location

1 Rental real estate Form 8825

2 Other rental (default) Schedule K, Other gross rental income (loss)

3 Royalty Schedule K, Royalties (income) and Schedule K, Other deductions (expenses)


120

Type of property / Other (specify)

Select the type of property or enter the other type of property in the Other (specify) field for Form 8825, Schedule K-1, box 2 and the Rent and Royalty Schedule. If you leave the Type of property field blank, ExacTax defaults to type 8 - Other as the type of property and a description must be entered in the Other (specify) field.

Number of personal use days / Personal use percentage, if personal use test met (Force)

Enter the number of personal use days for the rental property in the Number of personal use days field. To calculate the personal use percentage, ExacTax takes the number of days entered here and divides that by the number of days in the tax year. Enter a percentage (xxx.xxxx) in the Personal use percentage, if personal use test met (Force) field to force ExacTax to use a different personal use percentage.

Note: This percentage is applied against all expenses to arrive at the nondeductible personal portion. ExacTax assumes that the personal use test has been met and, therefore, a net loss from the rental is deductible.

Include net income (loss) in calculation for section 179 business income

Enter X to include the net income (loss) from rental real estate activities in the calculation of section 179 business income limitation.

Note: ExacTax automatically includes the net income from other rental and royalty activities in the section 179 business income limitation calculation.


Enter X to delete this unit of Form Rent on next year’s proforma. If you mark this checkbox, ExacTax indicates this activity is disposed in the statement for Schedule K-1, box 2, Net rental real estate income (loss) or box 3, Other net rental income (loss).

Income

Use this section to enter information as applicable for each property.

Sale of property (Force)

ExacTax automatically calculates the net gain or loss from the sale of rental property included as ordinary income on Form 4797, Enter an amount, including 0 (zero) to override the calculated amount. ExacTax subtracts the sale of rental property from the gain transferred from Form 4797 to Form 1065, Page 1, line 6. This field is applicable only if you entered 1 or 2 in the Type of activity field.

Other income

Use the field to enter other income items not entered elsewhere. ExacTax adds the items entered in the field to the following credit adjustments before transferring the net amount to the return.



Use Form Cr and Form Cr-4 of the associating activity to enter information for these items.


121

Expenses

Use this section to enter information as applicable for each property.

Auto and travel

Enter the amount of auto and travel expense. ExacTax reduces this amount by the amount of lease inclusion before transferring this amount to the return.


Enter an amount to override the lease inclusion calculated from the Form 51. If the lease inclusion is zero, enter 0 (zero). ExacTax reduces auto and travel expense before transferring this amount to the return.

Taxes

Enter the amount of tax expenses before the reduction for the credit for employer social security and Medicare taxes paid on certain employee tips. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8846 credit based on entry in Form Cr-4 for the associating activity before transferring the net amount to the return.

Wages and salaries

Enter the amount of wages and salaries before any reductions for allowable credits. ExacTax reduces the amount entered in this field by the amount of the allowable credits for Forms 5884, 8844, 8845, and 8932 based on entries in Forms Cr, Cr-3, Cr-4, and Cr-5 for the associating activity before transferring the net amount to the return.

Depreciation (Force)

Enter an amount to override the depreciation calculated from either the asset module or Form 4562 for this rental.

Other expenses

Use the field to enter other expenses not entered elsewhere. ExacTax adds the items entered in the field to the following adjustments before transferring the net amount to the return.

Amortization (Form Rent)

Meals and entertainment (Form Rent)

Guaranteed payments (Form Rent)








Form 8941, Credit for Small Employer Health Insurance Premiums (Form Cr-5)


122


Enter an amount to override the amortization calculated from either the asset module or Form 4562 for this rental.


Enter 100 percent of the meals and entertainment expenses. ExacTax automatically reduces this amount by 50 percent when calculating other expenses. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling amount for the nondeductible portion.

Meals

Enter 100 percent of the meals expense for employees, which are subject to the hours of service limitations of the Department of Transportation (DOT). ExacTax automatically reduces this amount by 20 percent when calculating other expenses. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling amount for the nondeductible portion.


Guaranteed payments: Health insurance

Enter the amount of health insurance considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Pensions and IRAs and Guaranteed payments: Other fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of health insurance considered guaranteed payments reported on Schedule K, lines 4 and 13 to partners.

Guaranteed payments: Pensions and IRAs

Enter the amount of pensions and IRAs considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health insurance and Guaranteed payments: Other fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of pensions and IRAs considered guaranteed payments reported on Schedule K, lines 4 and 13 to partners.

Guaranteed payments: Other

Enter the amount of deductible guaranteed payments to partners not related to health insurance or pensions and IRAs. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health insurance and Guaranteed payments: Pensions and IRAs fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of deductible guaranteed payments reported on Schedule K, line 4 to partners.


123

Liabilities (Enter amount on CA 11-14)

Income (Enter amount on CA 11-14)

Nonrecourse liabilities . . . . . . . . . . . . . . . . . . . . . . . . .

Employer identification number . .

K1 Form 1065/1041 Passthrough Schedule K-1 - Income

6PK1 01 10/25/16

Activity unit number . . . . . . . . . . .

Name of passthrough entity (35)

Type of entity . . . . . . . . . . . . . . .

[1]

[13]

PARTNERSHIP

Disposition of activity . . . . [21]

1065 1041Line

2

Ordinary income (loss) from trade or business activities . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income (loss) from rentalreal estate activities

Net income (loss) from otherrental activities . . . . .

Guaranteed payments to partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Interest . . . . . . . . . . . . . . . .

US interest . . . . . . . . . . . . .

5 1

Qualifying dividends . . . . . .

6a 2a

Royalties . . . . . . . . . . . . . .

6b

Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8 3

9a 4a

Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Unrecaptured Section 1250 gain from sale of business assets . . . . . . . . . . . . . . . . . . . . .

9b 4b

Net Section 1231 gain (loss) (Other than casualty and theft) . . . . . . . . . . . . . . . . . . . . . . . . .

9c

7

Other income (loss) items:

10

Other portfolio income(loss) . . . . . . . . . . . .

Form 4684 long-term loss from trade/business property. . . . . . . . . . . . . . . . . . . . . . . .11B

11C Section 1256 contracts and straddles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mining exploration costs recaptured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11D

Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11E

11A

11F Other income (loss)

Amount

City (20) . . . . . . . . . . . . . . . . . . . . State [6] Zip [7]Address (35) . . . . . . . . . . . . . . . . .

1065 1041K

K Qualified nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . .K

Not At Risk

Recourse liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .

2b

Form 4684 long-term loss from income producing property . . . . . . . . . . . . . . . . . . . . .Form 4684 long-term gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11B

11B

Unrecaptured Section 1250 gain from trusts, REITS or RICS . . . . . . . . . . . . . . . . . . . . . .4c

5

Line

7

8

32AOverflow # 2016

ExacTax, Inc.

#[16]


PtrAlloc

#[3]


[50]


[39]


[38]


PtrAlloc

[24]

PtrAlloc

[25]

At Risk

[22]

PtrAlloc

[23][28] [29][26] [27]

[33][30] [31]

(1 = Partnership, 2 = = Trust, 3 = Farm partnership)

4

Province or state, postal code. . . .Foreign country. . . . . . . . . . . . . . [11]

Include net income (loss) from rental real estate in Section 179 business income [20]

Publicly traded partnership . . . . . . . . . . . . . . . . . . . [18]

Ordinary income (loss) from publicly traded partnership . . . . . . . . . . . . . . . . . . . . . . . . . . [37]

Country of organization (if not US) [14] [15]Maximum percentage owned in profit, loss or capital - direct ownership . . . . . . . . . . . . . . [16]Maximum percentage owned in profit, loss or capital - indirect ownership . . . . . . . . . . . . [17]

Partnership qualifies for Section 1202 exclusion . . . [19]

Section 1202 gain - 50% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1202 gain - 75% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Code

[2]

[4][3]

[5][8] [9]

[10]

[32]

[36]

[§ 38]

[§ 50]

[41][40]

[54][53][55][57][59]

[56][58][60]

[61] [62]

[§ 39]

[§ 3]

[4][6][8]

[17][19]

[§ 16]

1 6[35][34]

K1-2 Form 1065/1041 Passthrough Schedule K-1 - Income

Type (20)

[43]


[§ 42]

[45]


[§ 44]

[47]

Ptr AllocDescription (29) Amount [46][§ 46]Ordinary dividends . . . . . . .

[49]

Ptr AllocDescription (29) Amount [48][§ 48]

[52][51]

[20]Section 1202 gain - 60% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[21] [22]

[18]

[11][13][15]

[10][12][14]

Disp

Disp

Section 1202 gain - 100% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [23] [24]

Name of activity[74]


124

Form [32A] - Form 1065/1041 Schedule K-1 - Income

Overview

Use this form to enter data from Schedules K-1 received from other partnerships, estates, or trusts where the current partnership is a partner or beneficiary. Enter data from the current partnership in all other forms. ExacTax automatically transfers the information in this form to all related forms and schedules.

General Information

Use this section to enter the general information from the passthrough Schedule K-1.

Name of passthrough entity

ExacTax uses the entity name in the folders block as the unit description. This field is mandatory.

Country of organization (if not US)

ExacTax uses this field in the statement for Form 1065, Schedule B, line 4b. If the country of organization is the United States, leave this field blank. ExacTax automatically fills in "United States" in the statement for applicable passthrough entities. The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the text field.

Maximum percentage owned in profit, loss, or capital

Enter the maximum direct and indirect percentage owned in profit, loss, or capital. If any passthrough entity has a direct ownership percentage greater than 20 percent or the sum of direct ownership and indirect ownership percentages greater than 50 percent, ExacTax reports the name; employer identification number; type of entity; country of organization; and maximum percentage owned in profit, loss, or capital of the passthrough entity on Form 1065, Schedule B, line 4b.

Publicly traded partnership

Enter X if the passthrough entity is a publicly traded partnership. ExacTax reports ordinary income (loss) from a publicly traded partnership on Schedule K, Other income (loss).

Partnership qualifies for section 1202 exclusion

Enter X if the partnership qualifies for exclusion on IRC section 1202 gains. By default, ExacTax transfers the amounts entered in the Section 1202 gain: 50% exclusion, 60% exclusion, 75% exclusion, and 100% exclusion fields in the Income section of Form K1-2 to Schedule D. If you enter X in this field, ExacTax includes the amounts on Schedule K, Other income (loss) instead.


Enter X to prevent the current unit from being proforma'd to next year's version of ExacTax. If you mark this checkbox, ExacTax automatically indicates that all rental items from this activity are disposed in the statements for Schedule K-1, box 2, Net rental real estate income (loss) and box 3, Other net rental income (loss).

Liabilities

Use this section to indicate the partnership's share of liabilities from the partnership's investment in other entities.


125

Nonrecourse / Qualified nonrecourse / Recourse

ExacTax uses these fields to calculate the partner's share of liabilities on Schedule K-1 and the Partner Basis Worksheet. These amounts are not included in the calculation of Schedule L liabilities.

Income

Use this section to enter income from the passthrough activity for the Schedule K, Income (Loss) section.

Ordinary income (loss) from trade or business activities

Enter ordinary income or loss from the passthrough activity, if not from a publicly traded partnership. ExacTax transfers this amount to Form 1065, Page 1, Ordinary income (loss) from other partnerships, estates, and trusts. This field is available only if you leave the Publicly traded partnership field blank.

Ordinary income (loss) from publicly traded partnership

Enter ordinary income or loss from the passthrough activity, if the Schedule K-1 is from a publicly traded partnership. This field is available only if you mark the Publicly traded partnership field. ExacTax transfers this amount to Schedule K, Other income (loss).

Guaranteed payments to partner

Enter guaranteed payments from the passthrough activity. ExacTax transfers this amount to Form 1065, Page 1, Other income. ExacTax does not automatically include the amount entered here on Schedule K, Guaranteed payments; ExacTax does not assume amounts entered here are also guaranteed payments to the partners of the current partnership.

US interest

Enter U.S. interest from the passthrough activity. ExacTax includes this amount in Schedule K, Interest income and separately states the income from U.S. obligations on Schedule K-1, box 20, Other information.

Net long-term capital gain (loss)

Enter the net long-term capital gain (loss) from the passthrough activity. ExacTax transfers this amount to Schedule D, Part II, Long-Term Capital Gains and Losses - Assets Held More Than One Year.


126

Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other deductions. . . . . .13W

Form 4684 short-term loss from income producing property. . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[71] [72][69]

# Ptr Alloc

[68]

Amount [58]Description (29)

[§68][68]

[68]

Deductions

K1-2

65PK1-2 02 11/28/16

Form 1065/1041 Schedule K-1 - Deductions

PARTNERSHIP

1065 1041

13BCash contributions (50%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cash contributions (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Noncash contributions (50%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]Noncash contributions (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13C

13D

13E Capital gain property to a 50% organization (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Capital gain property (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13F

[36][38]

Deductions – portfolio (2%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13L Deductions – portfolio (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13M

Investment interest expense oninvestment debts . . . . . . .

Deductions – royalty income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13I

Section 59(e)(2)expenditures:

Type (36) . . . . . . .[45]

13H

Amount

13A

Amount . . . . . . .

Amounts paid for medical insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13N Educational assistance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13O Dependent care benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13P Preproductive period expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Q Commercial revitalization deduction from rental real estate activities . . . . . . . . . . . . . . . .13R

13SPensions and IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13K

Reforestation expense deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13J

13U Qualified production activities income:

13V Employer's W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32B

32BOverflow # 2016

ExacTax, Inc.

14D

14C

Other information . . .

13T-V Domestic production activities deduction (Enter on {K1-3}:

Domestic production gross receipts (DPGR) . . . . . .Gross receipts from all sources . . . . . . . . . . . . . . . .Cost of goods sold allocable to DPGR . . . . . . . . .Cost of goods sold from all sources . . . . . . . . . . .

Directly allocable to DPGR . . . . . . . . . . . . . . . .Allocable to non-DPGR class . . . . . . . . . . . . . .Not directly allocable to DPGR . . . . . . . . . . . . .Indirectly allocable to DPGR . . . . . . . . . . . . . . .

Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Domestic production activities deduction from cooperatives . . . . . . . . . . . . . . . . . . . . . .


PtrAlloc

[44]

[41][40]

[45]

# Ptr Alloc

[39]

Amount [39]Description (29)

PtrAlloc

PtrAlloc

PtrAlloc

Amount [43] Ptr Alloc

[44]

Description (29)

PtrAlloc

[25][27]

[46] [47]Partner Allocation

Activity unit number . . . . . . . . . . . . Name of entity (Mandatory) (35)[1]

[40]Contributions (100%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13G

[29]

[§ 43]

[60][62][64]

[48][50][52]

[6][10][14]

[5][9]

[13]

[21][25][29][33]

[22][26][30][34]

[35][37]

[36][38]

[§39]

[18][17]

[39]

[39]

All activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [43][42]

Section 179 expense deduction- personal property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Line 12

[8][12]

[7][11]

[16][15]

[4][3]All ActivitiesOil-related Activities

[24][28]

[23][27]

[32][31]

[20][19]

PtrAlloc

Oil-related ActivitiesPtr

Alloc All Activities

[30][32]

[49][51]

[54][56][58]

[53][55][57][59][61][63][65]

K1-3 Form 1065/1041 Schedule K-1-DPAD and Self-Employment

Section 179 expense deduction- qualified real property . . . . . . . . . . . . . . . . . . . . . . . . . . .

[66] [67]

[42]

[31]

[70]

[33][35][37][39][41]

13W

13T

Oil related production acitivities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


127

Form [32B] - Form 1065/1041 Schedule K-1 - Income and Deductions

Overview


Income (continued)

Use this section to enter income from the passthrough activity for the Schedule K, Income (Loss) section.

Other income (loss) items: Form 4684 long-term loss from trade/business property / Form 4684 long-term loss from income producing property / Form 4684 long-term gain

Enter involuntary conversions from the passthrough activity. ExacTax transfers these amounts to Form 4684, Page 2. Enter the loss amounts as positive numbers.

Note: Use the Ptr Alloc buttons in Form K to specially allocate the net gain or loss from Form 4684 using ratios different from the profit-sharing percentages.

Other income (loss) items: Section 1256 contracts and straddles

Enter IRC section 1256 contracts and straddles from the passthrough activity. ExacTax transfers this amount to Form 6781, Part I, Section 1256 Contracts Marked to Market.


Enter cancellation of debt from the passthrough activity. ExacTax transfers this amount to Schedule K, Other income (loss).

Other income (loss) items: Other income (loss)

Use the field to enter other income or loss from the passthrough activity. ExacTax transfers this amount to Schedule K, Other income (loss).

If you export the Schedule K-1 information for any partner in this client's return from ExacTax/1065 into ExacTax/1040 or ExacTax/1041, complete the K-1 Export column in the field.

Other income (loss) items: Section 1202 gain

Enter IRC section 1202 gains from the passthrough activity. By default, ExacTax transfers these amounts to Schedule D. To include the amounts on Schedule K, Other income (loss), instead of Schedule D, enter X in the Partnership qualifies for section 1202 exclusion field in the General Information section in Form K1.

Deductions

Use this section to enter deductions from the passthrough activity for the Schedule K, Deductions section.

Section 179 expense deduction – personal property / qualified real property

Enter the section 179 expense from personal and qualified real property from the passthrough activity. ExacTax transfers these amounts to Form 4562, Part I, Election To Expense Certain Property Under Section 179. ExacTax automatically calculates the allowable deduction.


128

Note: Use the Ptr Alloc buttons for Section 179 expense allowed (Force) – personal property / qualified real property to specially allocate the allowable Form 4562, Section 179 expense deduction using different ratios than the profit-sharing percentages.

Section 179 expense allowed (Force) – personal property / qualified real property

ExacTax automatically calculates the allowed section 179 expense attributable to this passthrough activity. Enter an amount in this field if you want a different amount to be allocated to this unit.

Form 4684 short-term loss from income producing property

Enter the short-term loss from involuntary conversions of income producing properties from the passthrough activity. ExacTax transfers this amount to Form 4684, Page 2. Enter the loss amount as a positive number.


129

PtrAlloc

Self-Employment

Orphan drug credit (Form 8820) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Renewable electricity credit (From 8835) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Indian employment credit (Form 8845) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15P Other credits . . . . . . . .

Cr small emp pension plan startup costs (Form 8881) . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .Cr emp-provided childcare services (Form 8882) . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13M

13P

13J

13L

13N

#[30]


Biodiesel and renewable diesel fuels credit (Form 8864) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit Information

Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1065 1041

14C

[48]Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[50]Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount

14A [46]

14B

K1-3 Forms 1065/1041 Schedule K-1-Credits and Foreign

6PK1-3 01 10/25/16 PARTNERSHIP

Low-inc cr (42(j)(5)) pre-2008 bldgs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Low-inc cr (other) pre-2008 bldgs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15A

15B

15F

Biofuel producer credit (Form 6478) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15G

Other rental real estate cr . .

Other rental credits . . . . . . .

15I

15J Work opportunity credit (Form 5884) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15K

15LDisabled access credit (Form 8826) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15MEmpowermentzone and renewal employment credit (Form 8844). . . . . . . . . . . . . . . . . . . . . . . . .

15NCredit for increasing research activities (Form 6765) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Credit for employer social security/Medicare taxes (Form 8846). . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15O Backup withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13B

32C

32COverflow # 2016

ExacTax, Inc.

14F

13C

13C

13H

13F

13K

13I

PtrAlloc

[47][49][51]

[12]

[13]

Amount


Amount [13] Ptr AllocDescription (29)

Activity unit number . . . . . . . . . . .

Name of entity (Mandatory) (35)

[1]

K1-4Use Form K13468 to enter passthrough investment credit information for

1065 K-1 codes 15E, 15P, 20D, 20E, 20Z and 1041 K-1 codes 13D and 13E.1065 1041

15P

15P

15P

15P

15P

15PCr employer differential wage payments (Form 8932) . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .13T

Low-inc cr (42(j)(5)) post-2007 bldgs . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Low-inc cr (other) post-2007 bldgs (Form 8586) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15C

15D

13C

13C

13ONew markets credit (Form 8874) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15P

[30]

[30]

[30]

[§12]

[§13]

[§30]

[16][18][20][22][24][26][28]

[17][19][21][23][25][27][29]

[33][35][37][39]

[43][45][47]

[34][36][38][40]

[44][46][48]

15P

[41] [42]

Cr small emp health insurance premiums (Form 8941) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15P

[11]

[7][5]

[6][4]

PtrAllocAmount

[9][8]

15H Undistributed capital gains credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [14] [15]

Foreign Transaction

Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16B [49] [50]

[31] [32]

PtrAllocAmount

13G

[10]


130

Form [32C] - Form 1065/1041 Schedule K-1 - DPAD and Self-Employment

Overview



Use this section to enter information from the passthrough entity for Schedule K and the Form 8903 Domestic Production Activities Deduction Worksheet. ExacTax uses information from these fields in a domestic production activity information statement attached to Schedule K, Other deductions.

Note: You must select the method for computing qualified production activities income in Form K-3. Otherwise, ExacTax does not report the information entered in this section on the return.

Gross receipts from all sources / Cost of goods sold from all sources / Deductions, expenses, and losses: Allocable to non-DPGR class / Deductions, expenses, and losses: Not directly allocable to DPGR / Other information

Enter the amounts needed to calculate the domestic production activities deduction at the partner level from oil-related and all activities from the passthrough activity.

Note: ExacTax does not use these fields if you enter 1 in the Method for computing qualified production activities income field in Form K-3.

Self-Employment

Use this section to enter information from the passthrough activity for the Schedule K, Self-Employment section.


Enter net earnings (loss) from self-employment from the passthrough activity. ExacTax transfers this amount to the Partnership Self-Employment Worksheet.

Note: Net earnings (loss) from self-employment for the partnership is calculated based on the type of partner selected in the Partner tab in the Partner Information window in Partner Data Entry.


131

[28]

Other Information

Tax-Exempt Income and Nondeductible Expenses

Adjustments and Tax Preference Items

K1-5

6PK1-5 01 10/25/16

Forms 1065/1041 Schedule K-1 (Cont'd)

PARTNERSHIP

Depreciation adjustment post-1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17A [4]Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17B [6]Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17C [8]Gross income from oil, gas and geothermal properties . . . . . . . . . . . . . . . . . . . . . . . . . . . .17D

Deductions allocable to oil, gas and geothermal properties . . . . . . . . . . . . . . . . . . . . . . . .17E [12

Tax-exempt interest income18A

Other tax-exempt income . .18B

Nondeductible expenses . . .18C

Investment income (Automatically computed)20A

Look-back interest-completedlong term contracts. . . . . . .

20J

Look-back interest-incomeforecast method. . . . . . . . . .

20K

Section 453(I)(3) information. .20O

Section 453A(c) information. .20P

Section 1260(b) information. .20Q

Interest allocable to production expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20R

CCF nonqualified withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20S

Unrelated business taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20V

Other AMT items. . . . .17F

12H

14A

Other information – (enter on Form KSup {12})

1065 1041 Amount

32D

32DOverflow # 2016

ExacTax, Inc.

14E

PtrAlloc

[5][7][9]

[11][13]

#[14]


[17]

Ptr AllocDescription (29)

[18]


[40] [41]

[35] [36][37] [38]

[33]


[32]


[31]


[30]


[29]


Activity unit number Name of entity (Mandatory) (35)[1]

Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20B [19] [20]Recapture of low-income housing credit (section 42(j)(5)) (Form 8611) . . . . . . . . . . . . . . . .20F [21] [22]Recapture of low-income housing credit (other) (Form 8611) . . . . . . . . . . . . . . . . . . . . . . . .20G [23] [24]

Recapture of other credit . . .20IPtr AllocDescription (29) Amount [28]

Description (36)

Date in Service Date End Qual Prop

Original Credit Rate#[§ 25] Recapture investment credit (Form 4255)20H

Building or Energy Prop Type (15)

[25]

Ptr Alloc

% - xxx.xx

Cost/Basis [25]

[34]


20N Interest expense for corporatetaxpayers . . . . . . . . . . . . . .

13U

[§ 34]

[§ 33]

[§ 32]

[§ 31]

[§ 30]

[§ 29]

[§ 28]

[§ 18]

[§ 17]

[§ 14]

Amount [17]

Amount [18]

[39]


[§ 39]Depletion information-oil and gas. . . . . . . . . . . . . . . . . . . . . . . .20T

20Z

Description (29) Amount [15][§ 15] [16]

Ptr Alloc

Net farm income (loss) reported on Schedule K-1 for excess farm loss . . . . . . . . . . . . . . . .20Z [45] [46]Received subsidies subject to excess farm loss rules . . . . . . . . . . . . . . . . . . . . . . . .20Z [47]

Recapture of qualifying therapeutic discovery project grant (Form 4255) . . . . . . . . . . . . . . . .20H [26] [27]

Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Y [42] [43]

[44]


[§ 44]20Y Investment income detail

12G

[10]


132

Form [32D] - Form 1065/1041 Schedule K-1 - Credits and Foreign

Overview


Credit Information

Use this section to enter credits from the passthrough activity. ExacTax transfers the credits you enter here directly to the credits from partnerships field of the various credit forms. If the credit is related to a form that ExacTax does not support, the credit transfers directly to the Schedule K, Credits section.


Use this section to enter gross income from all sources from the passthrough activity. ExacTax adds this amount to the amount entered in the Gross income from all sources field in Form K-3 for Schedule K, Gross income from all sources. Enter all other foreign transaction information from the passthrough activity in Form K1Frgn.


133

Form 1065/1041 Schedule K-1 - Sch M-3 Info and Sec 179 COK1-6 (2016)

Schedule M-3 Information

Section 179 Carryovers

These fields are only to be used when Schedule M‐3 is printing. If Schedule M‐3 is not printing, entries in these fields will be ignored.

Permanent differenceTemporary difference

Loss percentage ‐ end of year

Type of entity (Force) (1 = US partnership, 2 = Foreign partnership, 3 = Other passthrough entity, 4 = Do not transfer to Schedule M‐3

Profit percentage ‐ end of year

Schedule M‐3 statement detail (Force):Income (loss) per income statement

Carryover from prior year

UnitName of passthrough entityView > Interim Closing Annualization

Name of activity12

3

4

5

6

7

8

9

11

K1-6 32E



134

Form [32E] - Form 1065/1041 Schedule K-1 - Sec M-3 Info and Sec 179 CO

Overview


Section M-3 Information

Use this section to enter information about the passthrough activity for Schedule M-3. If Schedule M-3 is not applicable or has been suppressed, ExacTax ignores entries in this section.

Type of entity (Force)

By default, ExacTax determines the type of entity based on data entry in Form K1. ExacTax uses the type to determine the line on Schedule M-3 on which the income (loss) and temporary or permanent difference is reported. Select a type from the drop-down list to report the passthrough activity information on a different line on Schedule M-3 or to exclude the passthrough activity from Schedule M-3.

US partnership - The passthrough activity is considered a US partnership if you enter a US address for the passthrough activity and select 1 or 3 in the Type of entity field in Form K1. ExacTax reports the information for the US partnership on Schedule M-3, Page 2, Income (loss) from U.S. partnerships.

Foreign partnership - The passthrough activity is considered a foreign partnership if you enter a foreign address for the passthrough activity and select 1 or 3 in the Type of entity field in Form K1. ExacTax reports the information for the foreign partnership on Schedule M-3, Page 2, Income (loss) from foreign partnerships.

Other passthrough entity - The passthrough activity is considered an other passthrough entity if the entity is not a US partnership or a foreign partnership. ExacTax reports the information for the other passthrough entity on Schedule M-3, Page 2, Income (loss) from other passthrough entities.

Profit percentage - end of year / Loss percentage - end of year

Enter the end-of-year percentages. ExacTax includes the percentages entered in these fields in the statement on the applicable line of Schedule M-3, Page 2.

Schedule M-3 statement detail (Force): Income (loss) per income statement / Temporary difference / Permanent difference

ExacTax calculates the income (loss) per income statement, temporary difference, and permanent difference for each passthrough activity using data from Forms K1, K1-2, K1-5, and K1Frgn. Enter an amount, including 0 (zero), to force the calculated amount.


Use this section to enter the section 179 carryover from this passthrough Schedule K-1 activity. Information entered in this section is used to complete Form 4562.


135


Forms 1065/1041 Schedule K-1-Foreign Transactions

Description (29)


16N

Deductions allocated and apportioned at partner level:

Gross income sourced atpartner level . . . . . . . . . . . [§ 7]

Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name of country or U.S. Possession (20) . . . . . . . . . . . . . . . . . . .

K1-6

6PK1-F 01 10/26/16 PARTNERSHIP

1065 1041

16C

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16G

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16H

16A

16B

Total foreign taxes: Paid [§ 28]16L

Accrued [§29]16M

Reduction in taxes available for cr [§ 30]

Foreign trading gross receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16O

Extraterritorial inc excl . . . [§ 33]16P

Other foreign transactions [§ 34]16Q

Deductions allocated and apportioned at partnership level. . . . . . . . . . . . . . . . . . . . . . . . .

32F

32EOverflow # 2016

ExacTax, Inc.

14G

[33]

Amount Ptr Alloc

[28]

Amount Ptr Alloc

[8]

Description (29)

[7]

Amount Ptr Alloc

Activity unit number . . . . . . . . . . . .


[1]

Foreign country code (Electronic filing only) . . . . . . . . . . . . . . . . (See manual for codes.)

Amount Ptr Alloc

Description (29)

Description (29)

Description (29) Amount Ptr Alloc

[29]

[30]

Description (29)

[34]

Amount Ptr Alloc

14B

[5]

[6]

[22]

[24]

[23]

[25]

[26] [27]

[31] [32]

[4]Category of income . . . . . . . . . . . . . . (1 = Passive, 2 = General, 3 = Section 901(j), 4 = Re-sourced by treaty)

16I-K

Foreign gross income sourced at partnership level:16D-F

[20] [21]

[10]

[9]

[11]

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[12] [13]Long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[14] [15]Collectibles (28%) gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[16] [17]Net section 1231 gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[18]Unrecaptured section 1250 gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [19]

K1Frgn

Schedule M-3 Information

These fields are only to be used when Schedule M-3 is printing. If Schedule M-3 is not printing, entries in thesefields will be ignored.

[3]Type of entity (Force) (1 = US partnership, 2 = Foreign partnership, 3 = Other passthrough entity, 4 = Do not transfer to Schedule M-3)

[4][5]

Profit percentage - end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loss percentage - end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6][7][8]

Schedule M-3 statement detail (Force):Income (loss) per income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Temporary difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Permanent difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32F

Mutual fund or other regulated investment company (RIC) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . [35]16A


[9][10]

Carryover from prior year - personal property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Carryover from prior year - qualified real property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


136

Form [32F]- Form 1065/1041 Schedule K-1 - Foreign Transactions

Overview



Use this section to enter data from the passthrough activity for the Schedule K, Foreign Transactions section. Use a separate form for each country or U.S. possession and category of income for which the passthrough activity had income or paid or accrued taxes. ExacTax completes the Foreign Transactions Worksheet when there is more than one country or U.S. possession or category of income.

Note: Enter the amount from Schedule K-1, box 16, code B, Gross income from all sources on Form K1-4.

Category of income

Select the category of income for foreign source gross income and deductions allocated and apportioned at the partnership level. ExacTax uses this information to determine where to report the foreign gross income and deductions on Schedules K and K-1.

Note: If 3 or 4 is selected, ExacTax reports this as Other category income and deductions on Schedules K and K-1.

Name of country or US possession

Select the foreign country code from the drop-down list. ExacTax enters the selected country in the text field. The country code is required when electronically filing. If you do not electronically file the return, you can enter the country name directly in the text field.

Mutual fund or other regulated investment company (RIC) income

Enter X if the foreign income and foreign taxes were from a mutual fund or other regulated investment company (RIC). When you mark this field, ExacTax uses "RIC" as the country name on Schedule K and the partnership and partner Foreign Transaction Worksheet. Regulated investment income (RIC) does not need to be reported on a country-by-country basis.


137

Form 1065/1041 Schedule K-1 - COD IncomeK1CODI (2016)


Income deferred under section 108(i)Original issue discount (OID) deducts deferred under sec 108(i)

Form

Unit

Debt instrument

Previous PartnersAmounts from


Amounts fromCurrent Partners



Deferred OID deductions allowable as a deduction in current yearDeferred income included in current year income*

**

*

* Enter amounts included in income or deductions due to acceleration events only



*

*

1

23

5 6 7

8 9 10

11 12

13 14

41

42

43

44

45

46

47

48

49

50

51

52

K1CODI 32G



138

Form [32G] - Form 1065/1041 Schedule K-1 - COD Income

Overview

Use this form to enter data from Schedules K-1 received from other partnerships, estates, or trusts where the current partnership is a partner. Enter data from the current partnership in all other forms. ExacTax automatically transfers the information in this form to all related forms and schedules.

Notes

ExacTax reports information from each unit of Form K1CODI to the following locations on the return.

Partner Section 108(i) Annual Information Statement (prints as an attachment to Schedule K-1 in the partner packages)

Forms 1065 and 8865, Schedule K, line 20c and Schedule K-1, box 20, code X

Form 1065-B, Schedule K, line 15 and Schedule K-1, box 9, code U

When deferred income or deductions are recognized in the current year, ExacTax reports information from Form K1CODI to the following locations on the return.

Forms 1065 and 8865, Schedule K, line 11, Schedule M-1, and Schedule K-1 box 11, code F

Forms 1065 and 8865, Schedule K, line 13, Schedule M-1, and Schedule K-1, box 13, code W


Use this section to enter information for prior-year IRC section 108(i) elections.

Amounts from Previous Partners

Enter the amounts as reported on the initial IRC section 108(i) election attributable to partners no longer participating in the partnership. ExacTax adds these amounts to the amounts from existing partners for Schedules K and K-1, Other information.


Enter the amount of cancellation of debt income the partnership elected to defer that is attributable to existing partners. ExacTax adds the amount entered in this field and the amount entered in the previous partners field and subtracts the amounts entered in the Deferred income included in current year income field and the Deferred income included in prior years’ income fields to determine the remaining amount of deferred income to be recognized.


Enter the amount of original issue discount deductions related to deferred income under IRC section 108(i) that is attributable to existing partners. ExacTax adds the amount entered in this field and the amount entered in the previous partners field and subtracts the amounts entered in the Deferred OID deductions allowable as a deduction in current year field and the Deferred OID deductions allowable as a deduction in a prior year fields to determine the remaining amount of deferred original issue discount deductions to be recognized.

Deferred income included in current year income


139

Enter the deferred IRC section 108(i) income included in the current year. ExacTax includes this amount on Schedule K, Other income (loss) and on Schedule K-1, box 11, code F for Forms 1065 and 8865. For Form 1065-B, ExacTax includes this amount on Schedule K, line 15 and on Schedule K-1, box 9, code U.

ExacTax also subtracts the amount entered in this field and the amount entered in the Deferred income included in prior years’ income fields from the amount entered in the Income deferred under section 108(i) fields to determine the remaining amount of deferred income to be recognized.

Note: ExacTax automatically combines the 20% add back of income deferred under section 108(i) with the amount entered here before transferring the net amount to the return. Do not include the 20% add back amount in this field.

Deferred OID deductions allowable as a deduction in current year

Enter the deferred IRC section 108(i) original issue discount deductions allowable as a deduction in the current year. ExacTax includes this amount on Schedule K, Other deductions and on Schedule K-1, box 13, code W for Forms 1065 and 8865. For Form 1065-B, ExacTax includes this amount on Schedule K, line 15 and on Schedule K-1, box 9, code U.

ExacTax also subtracts the amount entered in this field and the amount entered in the Deferred OID deductions allowable as a deduction in current year field from the amount entered in the Original issue discount (OID) deductions deferred under sec 108(i) fields to determine the remaining amount of deferred original issue discount deductions to be recognized.

Note: ExacTax automatically combines the 20% add back of deferred OID deductions under section 108(i) with the amount entered here before transferring the net amount to the return. Do not include the 20% add back amount in this field.

Deferred income included in prior years’ income

Enter the deferred IRC section 108(i) income included in prior years that is attributable to existing partners. ExacTax subtracts the amount entered in this field for both previous and existing partners and the amount entered in the Deferred income included in current year income field from the amount entered in the Income deferred under section 108(i) fields to determine the remaining amount of deferred income to be recognized.

Deferred OID deductions allowable as a deduction in a prior year

Enter the deferred IRC section 108(i) original issue discount deductions allowable as a deduction in prior years attributable to existing partners. ExacTax subtracts the amount entered in this field for both previous and existing partners and the amount entered in the Deferred OID deductions allowable as a deduction in current year field from the amount entered in the Original issue discount (OID) deductions deferred under sec 108(i) fields to determine the remaining amount of deferred original issue discount deductions to be recognized.


140

Form 1065/1041 Schedule K-1 - Investment CreditK13468 (2016)

Rehabilitation Credit

Energy Credit

Other Investment Credits


15P

15E

20Z

15P

13D20E

20E

13D

20E

13D

20E

13D

13D

13D

20Z

1041Code

1065

20D

UnitName of passthrough entity

13E

13E

13E

Rehabilitation credit from an ELP

Basis of property using geothermal energyBasis using solar illumination or solar energyQualified fuel cell property:

Basis of property acquired before 10/4/08Kilowatt capacity acquired before 10/4/08

Qualified microturbine property:Basis of propertyKilowatt capacity

Rehab expenditures other than rental real estate:

Rehab expenditures rental real estate:

Unused investment credit cooperatives, Part II

Basis of qualified investment in property

Advanced coal‐based property (48A(d)(3)(B)(ii))Gasification combined cycle property (48A(d)(3)(B)(i))

Qualifying advanced coal project credit:

Unused investment credit cooperatives, Part III

Basis other qualified investment in property

Qualifying gasification project credit:Advanced coal‐based property (48A(d)(3)(B)(iii))

Basis of geothermal heat pump systems

Basis of combined heat and power system20E 13D

20E 13D

13D15P

20E 13D

Pre‐1936: Other

13D20E Basis of investment cr facility property (Oth than wind facility prop and the constr beginning after 2016)

Small wind energy property:

13E20Z Basis of advanced energy project credit

Basis of property acquired before 1/1/09Basis of property acquired after 12/31/08

Kilowatt capacity acquired after 10/3/08Basis of property acquired after 10/3/08

CHS: Other

CHS: OtherPre‐1936: Other

Name of activity

Basis of wind facility property (Construction of which begins during 2017)20E 13D

12

3

8 9

14 15

20 21

26 27

28 29

30 31

32 33

34 35

36 37

38 39

40 41

42 43

44 45

46 47

48 49

50 51

52 53

54 55

56 57

58 59

60 61

62 63

64 65

66 67

68 69

70 71

72 73

K13468 32F



141

Form [32F] - Form 1065/1041 Schedule K-1 - Investment Credit

Overview

Use this form to enter passthrough investment credit information from Schedules K-1 received from other partnerships, estates, or trusts where the current partnership is a partner or beneficiary. Enter data from the current partnership in all other forms. ExacTax automatically transfers the information in this form to all related forms and schedules.


Use this section to enter the rehabilitation expenditures for Form 3468, Part III, line 11 from the passthrough activity.

Energy Credit

Use this section to enter energy property information for Form 3468, Part III, line 12 from the passthrough activity.

Basis of combined heat and power system

Enter the basis of combined heat and power system property from the passthrough activity. Use Form CrGen to enter the factor used for the electrical capacity for combined heat and power system property.


Use this section to enter information for Form 3468, Part II, lines 5 - 9 and Part III, line 13 from the passthrough activity.


142

Expense

Amortization (Force) . . . . . . . . . . . . . . . . .

Meals/ent (100% Subj to 50% limit) . . . . . . . . .

Amount [30]

Amount [27]

Amount [13]

Amount [20]

Description (23)

F Schedule F - General Information

6PSCHF 01 10/25/16

Income

Description (23)#

Principal product: (35)

Car and truck expense. . . . . . . . . . . . . . . . .

[§ 13] Sales of livestock and other items

[2]

Activity unit number . . .

PARTNERSHIP

Description: (35)

State postal code . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[3]

Beginning inventory . . . . . . . . . . . . . . . . .Cost of product purchased . . . . . . . . . . . . .Ending inventory . . . . . . . . . . . . . . . . . . . .

Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . .[4]

Conservation expenses . . . . . . . . . . . . . . . .Custom hire (Machine work) . . . . . . . . . . . .Depreciation (Force) . . . . . . . . . . . . . . . . . . .Employee benefits . . . . . . . . . . . . . . . . . . . .Feed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fertilizer and lime . . . . . . . . . . . . . . . . . . .

[10]

Freight and trucking . . . . . . . . . . . . . . . . . .Gasoline, fuel, and oil . . . . . . . . . . . . . . . .Insurance (Other than health) . . . . . . . . . . . .Interest - financial institution . . . . . . . . . . . .Interest - other . . . . . . . . . . . . . . . . . . . . . .Labor hired (less employment credit) . . . . . . .Pension/profit sharing . . . . . . . . . . . . . . . .Rent/lease - machinery . . . . . . . . . . . . . . .

Rent/lease - other . . . . . . . . . . . . . . . . . . .Repairs and maintenance . . . . . . . . . . . . .Seeds and plants . . . . . . . . . . . . . . . . . . . .Storage and warehousing . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Veterinary, etc. . . . . . . . . . . . . . . . . . . . . . .

Description (25)#[§ 30] Other expenses

Accounting method . . .(1 = Cash (Default) 2 = Accrual)

Agricultural activity code . . . . . . . . . . . . . . . . . . . . . . .

Cost of other basis of livestock or otherresale items (Cash method) . . . . . . . . . . . . .

Amount [15]#[§ 15] Specified sale of items raised

Crop ins proceeds in current yr - taxable

Crop insurance deferred from prior year . . .

CCC loans forfeited - total . . . . . . . . . . . . .CCC loans forfeited - taxable . . . . . . . . . . .Crop ins proceeds in current yr - total . . . .

Cooperative distribution - total . . . . . . . . . .Cooperative distribution - taxable . . . . . . . .Agricultural program payments - total . . . .Agricultural prog payments - taxable . . . . .

Custom hire (machine work) income . . . . .

Description (25)#[§ 27] Taxes

Preproductive period . . . . . . . . . . . . . . . . .

Description (23)#[§ 20] CCC loans reported under election

Meals (100% Subj to DOT 80% limit) . . . . . . .

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Was there material participation in the operationof this business this year? . . . . . . (1 = Yes, 2 = No)

Guaranteed payments:

Specially allocate [5]

Overflow # 2016 36

ExacTax, Inc. 36

Elect to defer crop ins proceeds to next yr (See Form EXP)[§ 26]

F-2

Elect to include CCC loans in income (Section 77(a)) . . . . .

[4]

[1]

[6][7]

[12]

[14]

[25]

[27]

[30][31][32]

[22][23]

[28]

[24]

[21]

[6][5]

[7]

[9][8]

[11][12][13][14][15][16][17][18][19][20][22][23]

[26]

[28][29]

[31][32][33]

Received applicable subsidies as defined by theFarm Act of 2008 for excess farm loss . . . . . . . . . . . . . [33]

Current year net gain (loss) onsale of property . . . . . . . . . . . . . . . . . . . . . .

[9]

[16][17]

[19][18]

If yes, were or will all required Form(s) 1099be filed . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [11]

Were payments made that would require Form(s)1099 to be filed . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [10]

Amount [29]Description (23)#[§ 29] Other income (Include gas or fuel tax credit or refund)

Some investment is not risk . . . . . . . . . . . . . . . . . . . . . . [34]

At Risk and Subsidy Information

PtrAlloc

[36]

[35]

[34]

[35]

[24][25]

Lease inclusion (Force) . . . . . . . . . . . .

Health insurancePensions and IRAsOther

[36][37]


143

Form [36] - Farm - Income

Overview

Use this form to enter the Schedule F general information and income if the partnership operates a farm. ExacTax transfers net farm profit (loss) to Form 1065, Page 1, Net farm profit (loss). However, if the net farm profit (loss) is specially allocated, ExacTax transfers it to Schedule K, Other income (loss).

General Information

Use this section to enter general information for Schedule F and classify the accounting method for farm income.

Unit


Description

ExacTax uses the description you enter in the folders block and in the Allocations window in Partner Data Entry for identification purposes. This field is mandatory.

Specially allocate

Click the Ptr Alloc button to specially allocate the net profit (loss) from this farm activity to partners using ratios that are different from the profit-sharing percentages. You need to use this field only if the partnership has an allocation for this farm that differs from the profit-sharing percentages. If you specially allocate this farm activity, ExacTax moves the associated amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Note: Form 1065 instructions state that specially allocated page 1 items must be reported on Schedule K.

Was there material participation in the operation of this business this year?

Enter 1 for Yes or 2 for No to answer Schedule F, question E. If you leave this field blank, because this field is required when electronically filing the partnership return, ExacTax automatically answers No. Note, however, that participation is not determined at the partnership level.


Enter X if the activity was disposed during the year and to prevent the current unit from being proforma'd to next year's version of ExacTax.

Income

Use this section to enter all farm income for Schedule F, Parts I and III. ExacTax classifies the fields as cash or accrual according to the selection in the Accounting method field.

Cooperative distributions / Agricultural program payments / CCC loans forfeited / Crop insurance proceeds received in current year

If you enter an amount in the Total field, ExacTax automatically enters the same amount in the Taxable field. Enter a different amount in the Taxable field, including 0 (zero), if the entire amount is not taxable.


144

CCC loans reported under election

Use the field to enter information for the Commodity Credit Corporation (CCC) loans reported under election. If you enter X in the Elect to include CCC loans in income field, ExacTax automatically prints the tax election with the return with information from this field.

Elect to include CCC loans in income

Enter X to elect to include CCC loans in income. ExacTax will automatically print the tax election with the return with the information entered in the field for the CCC loans reported under election field. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you use this field to make the election, do not select election #26, Farm CCC Loans in Form Elect.

Election to defer crop insurance proceeds to next year

Use the field to enter information for the election statement to defer crop insurance proceeds to next year. ExacTax automatically prints the tax election with the return. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you use this field to make the election, do not select election #31, Farm Crop Insurance Deferral in Form Elect.

Other income

Use the field to enter other income items not entered elsewhere. ExacTax adds the items entered in the field to the following credit adjustments in the printed statement.




Beginning / Ending inventory

Enter the beginning and ending inventory amounts when you use the accrual accounting method. You can enter 0 (zero) in either of these fields, if applicable.

At Risk and Subsidy Information

Use this section to complete Schedule F, Page 1, lines 35, 36a, and 36b and to report farming business income or loss and subsidy information on Schedule K-1, box 20, code Z.

Received applicable subsidies as defined by the Farm Act of 2008 for excess farm loss

Enter X if farm subsidies were received during the tax year. If the farm has a net loss, ExacTax answers Yes to Schedule F, Page 1, line 35. Leave this field blank to answer No to Schedule F, Page 1, line 35.

Note: According to IRC section 461(j), ExacTax reports whether farm subsidies were received during the year and the current year net income or loss for all farming activities on Schedule K-1, box 20, code Z.


145

Some investment is not at risk

Enter X if some of the farm loss is not at risk. ExacTax marks Schedule F, Page 1, line 36b. If you do not enter X and the farm has a net loss, ExacTax marks Schedule F, Page 1, line 36a.

Note: ExacTax does not limit the loss reported on Schedule F, Page 1, line 34.

Current year net gain (loss) on sale of property

Enter the current year net gain (loss) on the sale of farming property. ExacTax adds this amount to the current year income or loss on Schedule F, line 34 for Schedule K-1, box 20, code Z.

Expenses

Use this section to enter farm expenses for Schedule F, Part II.

Conservation expenses

If you enter a positive amount of conservation expenses, the deduction on Schedule F is limited to 25 percent of the gross farm income. ExacTax generates a Schedule M-1 or Schedule M-3 reconciling amount for the nondeductible portion. If you enter a negative number, ExacTax converts the number to a positive number for Schedule F, does not limit the deduction based on income, and does not create a Schedule M-1 or Schedule M-3 reconciling adjustment.

Depreciation expense (Force)

Enter an amount to override the depreciation calculated from either the asset module or Form 4562 for this farm.

Employee benefits other than pension and profit-sharing

Enter the amount of employee benefits other than pension and profit-sharing before the reduction for the credit for small employer health insurance premiums. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8941 credit based on entry in Form Cr-5 for the associating activity before transferring the net amount to Schedule F.

Labor hired

Enter the amount of labor hired before any reductions for allowable credits. ExacTax reduces the amount entered in this field by the amount of the allowable credits for Forms 5884, 8844, 8845, and 8932 based on entries in Forms Cr, Cr-3, Cr-4, and Cr-5 for the associating activity before transferring the net amount to Schedule F.

Rent or lease – vehicles, machinery, and equipment

Enter the amount of rent or lease expense for vehicles, machinery, and equipment. ExacTax reduces this amount by the amount of lease inclusion before transferring this amount to Schedule F.


Enter an amount to override the lease inclusion calculated from the Form 51. If the lease inclusion is zero, enter 0 (zero). ExacTax reduces rent or lease expense for vehicles, machinery, and equipment expense before transferring this amount to Schedule F.

Taxes


146

Enter the amount of tax expenses before the reduction for the credit for employer Social Security and Medicare taxes paid on certain employee tips. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8846 credit based on entry in Form Cr-4 for the associating activity before transferring the net amount to Schedule F.

Other expenses

Use the field to enter other expenses not entered elsewhere. ExacTax adds the items entered in the field to the following adjustments in the printed statements for Schedule F.

Amortization (Form 4835-2)

Preproductive period expenses (Form 4835-2)

Meals and entertainment (Form 4835-2)

Guaranteed payments (Form 4835-2)









Enter an amount to override the amortization calculated from either the asset module or Form 4562 for this farm.


Enter the amount of preproductive period expenses. The amount you enter prints as a negative number with the description "263A." on Schedule F.

Notes

ExacTax also transfers this amount to Schedule K, line 13d – Other deductions. Enter an amount, including 0 (zero), in the Preproductive period expenses (Force) field on Form SepK if you want to override the amount ExacTax transfers.

Use the Ptr Alloc field on Form SepK to allocate the amount of preproductive period expenses reported on Schedule K to partners.


Enter 100 percent of the meals and entertainment expenses. ExacTax automatically reduces this amount by 50 percent when calculating other expenses. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.

Meals


147

Enter 100 percent of the meals expense for employees that are subject to the hours of service limitations of the Department of Transportation (DOT). ExacTax automatically reduces this amount by 20 percent when calculating other expenses. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.



Enter the amount of health insurance considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Pensions and IRAs and Guaranteed payments: Other fields before transferring the net amount to Schedule F, line 32 – Other expenses. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.



Enter the amount of pensions and IRAs considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health insurance and Guaranteed payments: Other fields fields before transferring the net amount to Schedule F, line 32 – Other expenses. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of deductible guaranteed payments reported on Schedule K, lines 4 and 13 to partners.


Enter the amount of deductible guaranteed payments to partners not related to health insurance or pensions and IRAs. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health Insurance and Guaranteed payments: Pensions and IRAs fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.



148

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [32]

4835 Form 4835 - Farm Rental

6P4835 01 10/25/16

Expenses

Income Items

Description (25)#

Income from production . . . . . . . . . . . . . . .

Car/truck expenses (Force) . . . . . . . . . . . . .

[§ 32] Other income (Include gas or fuel tax credit or refund)

[4]

[1]Activity unit number . . . . . . . . . . . . . . . . . . . . .

PARTNERSHIP

Description (Mandatory): (35)

Was there active participation in the operationof this farm this year? . . . . . . . . . .(1 = Yes (Default), 2 = No)

Cooperative distributions - total . . . . . . . . .Cooperative distributions - taxable . . . . . . .Agricultural program payments - total . . . .Agricultural program payments - taxableCCC loans reported under election . . . . . .

CCC loans forfeited - total . . . . . . . . . . . . .CCC loans forfeited - taxable . . . . . . . . . . .Crop ins. proceeds rec. cur. yr. - total. . . . . .

Crop ins. proceeds rec. cur. yr. - taxable . . .

Crop insurance deferred from prior year

Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . .Conservation . . . . . . . . . . . . . . . . . . . . . . . .Custom hire . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) . . . . . . . . . . . . . . . . . .Employee benefits . . . . . . . . . . . . . . . . . . . .Feed purchased . . . . . . . . . . . . . . . . . . . . .Fertilizer/lime . . . . . . . . . . . . . . . . . . . . . . .Freight/trucking . . . . . . . . . . . . . . . . . . . . .Gasoline/fuel/oil . . . . . . . . . . . . . . . . . . . .Insurance . . . . . . . . . . . . . . . . . . . . . . . . . .Interest - financial inst. . . . . . . . . . . . . . . . .Interest - other . . . . . . . . . . . . . . . . . . . . . .Labor hired (Less employment credits) . . . . . .Pension/profit sharing . . . . . . . . . . . . . . . .Rent/lease - machinery . . . . . . . . . . . . . . .

Rent/lease - other . . . . . . . . . . . . . . . . . . .Repairs/maintenance . . . . . . . . . . . . . . . .Seeds/plants . . . . . . . . . . . . . . . . . . . . . . .Storage/warehousing . . . . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Veterinary, etc. . . . . . . . . . . . . . . . . . . . . . .

Amount [30]Description (25)#[§ 30] Other expenses

Amortization (Force) . . . . . . . . . . . . . . . . . .

Meals/entertainment (100% Subj to 50% limit)

[31]

Meals (100% Subj to DOT 80% limit) . . . . . . .Guaranteed payments:

Include net income/loss in calculation for Section 179business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 38

ExacTax, Inc. 38

[19]

[4]

4835-2

Elect to include CCC loans in income (Section 77(a)) . . .

[20][21][22][23][24]

[26][27][28][29]

[25]

[31]

Sale of Property (Force) . . . . . . . . . . . . . . .[33]

[32]

[34]

[35]

[33]

[27][26][25][24][23][22]

[18][19]

[17][16]

[14][15]

[13][12]

[10][11]

[5][6][7][8][9]

[10]

Foreign country. . . . . . [12]

Address: (37)

CityState* Zip* *(Leave blank if foreign)Province or State. . . . . . . . . . . . . . .

[11]Postal code. . . . . . . . . . . . . . . . . . .

Specially allocate net income/loss . . . . . . . . . . . . . . . . . . [5]

Subsidy Information

Cause of LossCrop Description (25)#[§ 30] Elect to defer crop ins proceeds to next yr

Date Occured Insurance Carrier Date Received Amount Received

4835

Qualifies as a farming business for the excess farm losscalculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]Received applicable subsidies as defined by the Farm Actof 2008 for excess farm loss . . . . . . . . . . . . . . . . . . . . . . . [35]

Enter preceding years' net income or loss (including zero) forFarm Act of 2008 excess loss calculations

[6][7][8] [9]

[16]

[17]

[18]

Lease inclusion (Force). . . . . . . . . . . . . [20]

[29][28]

[13]Type of property (4 = Commercial, 5 = Land). . . . . . . . . . . [14]

Other (specifiy). . . . . . . . . . . . . .[15]

Health insurance. . . . . . . . . . . . . . . . . .Pensions and IRAs. . . . . . . . . . . . . . . .Other. . . . . . . . . . . . . . . . . . . . . . . . . . .

[36][37]


149

Form [38] - Farm Rental - Income

Overview

Use this form to enter general farm information and income if the partnership is a landowner or sub-lessor of the farm. ExacTax transfers the net farm rental income (loss) from the Farm Rental Income and Expenses Worksheet to Form 8825.

General Questions

Use this section to enter the address of the farm rental and classify the type of property for Form 8825.

Unit


State

Enter the state postal code (or select one from the drop-down list) for the state in which the farm rental is located. The state postal code allows certain state-specific versions of ExacTax to determine in-state and out-of-state income.

Foreign country

Select the foreign country code from the drop-down list in the Foreign country field. ExacTax enters the selected country in the text field. The country code is required only when electronically filing. If you do not electronically file the return, you can enter the country name directly in the Foreign country text field.

Type of property / Other (specify)

Select the type of property or enter the other type of property in the Other (specify) field for Form 8825 and Schedule K-1, box 2. If you leave the Type of property field blank, ExacTax defaults to type 8 – Land – Farm Rental as the type of property.

Was there active participation in the operation of this farm this year?

Participation is not determined at the partnership level. However, if you want to answer the Did you actively participate in the operation of this farm during the tax year field on the Farm Rental Income and Expenses Worksheet, enter 1 for Yes or 2 for No.


Enter X to prevent the information on this unit from being proforma'd to next year's version of ExacTax. If you mark this checkbox, ExacTax indicates this activity is disposed in the statement for Schedule K-1, box 2, Net rental real estate income (loss).

Income

Use this section to complete the Farm Rental Income and Expenses Worksheet, Part I.

Cooperative distributions / Agricultural program payments / CCC loans forfeited / Crop insurance proceeds received in current year


150

If you enter an amount in the total field, ExacTax automatically enters the same amount in the taxable field. Enter a different amount in the taxable field, including 0 (zero), if the entire amount is not taxable.

CCC loans reported under election

Use the field to enter information for the Commodity Credit Corporation loans reported under election. If you enter X in the Elect to include CCC loans in income field, ExacTax automatically prints an IRC section 77(a) tax election for this farm rental with information from this field.


Enter X to elect to include CCC loans in income. ExacTax automatically prints an IRC section 77(a) tax election for this farm rental with the information entered in the field for the CCC loans reported under election field. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you make the election with this field, do not select election #26, Farm CCC Loans in Form Elect, as duplicate elections will print.

Election to defer crop insurance proceeds to next year

Use the field to enter information for an election to defer crop insurance proceeds to next year. ExacTax automatically prints an IRC section 451(d) tax election for this farm rental. If you electronically file the return, ExacTax includes the tax election in the electronic file.

Note: If you make the election with this field, do not select election #31, Farm Crop Insurance Deferral, in Form Elect, as duplicate elections will print.

Other income

Use the field to enter other income items not entered elsewhere. ExacTax adds the items entered in the field to the following credit adjustments.




Sale of property (Force)

ExacTax automatically calculates the net gain or loss from the sale of farm rental property included as ordinary income on Form 4797. Enter an amount, including 0 (zero) to override the calculated amount. ExacTax reports this amount on Form 8825, line 19 and subtracts this amount from the gain or loss transferred from Form 4797 to Form 1065, Page 1, line 6.

Subsidy Information

Use this section to report farming business income or loss and subsidy information on Schedule K-1, box 20, code Z.

Qualifies as a farming business for the excess farm loss calculation

Enter X if this farm rental qualifies as a farming business for the excess farm loss calculation. ExacTax includes the net farm rental income (loss) for all farming businesses on Schedule K-1, box 20, code Z for the excess farm loss calculation


151

according to the Farm Act of 2008. See the Schedule F (Form 1040) instructions for more information on the excess farm loss calculation.

Received applicable subsidies as defined by the Farm Act of 2008 for excess farm loss

Enter X if this farm rental received subsidies as defined by the Farm Act of 2008 and this farm rental qualifies as a farming business for the excess farm loss calculation.

Note: According to IRC section 461(j), ExacTax reports farm rentals that receive subsidies during the year on Schedule K-1, box 20, code Z.

Expenses

Use this section to complete the Farm Rental Income and Expenses Worksheet, Part II.

Car and truck expenses

ExacTax transfers this amount to Form 8825, line 4 - Auto and travel.

Chemicals / Custom hire (machine work) / Feed / … / Gasoline, fuel, and oil / Pensions and profit sharing plans / Rent or lease - other (land, animals, etc) / Seeds and plants / … / Supplies / Veterinary, breeding, and medicine

ExacTax transfers these amounts to Form 8825, line 15 - Other.

Conservation expenses

If you enter a positive amount of conservation expenses, the deduction is limited to 25 percent of the gross farm rental income. ExacTax generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion. If you enter a negative number, ExacTax converts it to a positive number, does not limit the deduction based on income, and does not create a Schedule M-1 or Schedule M-3 reconciling adjustment.

Notes

ExacTax transfers this amount to Form 8825, line 15 - Other.

Employee benefits other than pension and profit-sharing

Enter the amount of employee benefits other than pension and profit-sharing before the reduction for the credit for small employer health insurance premiums. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8941 credit based on entry in Form Cr-5 for the associating activity before transferring the net amount to Form 8825, line 15 - Other.


Enter an amount to override the depreciation calculated from either the asset module or Form 4562 for this farm rental. ExacTax transfers this amount to Form 8825, line 14 - Depreciation.

Insurance (other than health insurance)

ExacTax transfers this amount to Form 8825, line 7 - Insurance.

Interest - mortgage (paid to banks, etc) / other

ExacTax transfers the sum of these amounts to Form 8825, line 9 - Interest.


152

Labor hired

Enter the amount of labor before any reductions for allowable credits. ExacTax reduces the amount entered in this field by the amount of the allowable credits for Forms 5884, 8844, 8845, and 8932 based on entries in Forms Cr, Cr-3, Cr-4, and Cr-5 for the associating activity before transferring the net amount to Form 8825, line 15 - Other.

Rent or lease – vehicles, machinery, and equipment

Enter the amount of rent or lease expense for vehicles, machinery, and equipment. ExacTax reduces this amount by the amount of lease inclusion before transferring this amount to Form 8825, line 15 - Other.


Enter an amount to override the lease inclusion calculated from the Form 51. If the lease inclusion is zero, enter 0 (zero). ExacTax reduces rent or lease expense for vehicles, machinery, and equipment expense before transferring this amount to Form 8825, line 15 – Other.

Repairs and maintenance

ExacTax transfers this amount to Form 8825, line 10 - Repairs.

Taxes

Enter the amount of tax expenses before the reduction for the credit for employer Social Security and Medicare taxes paid on certain employee tips. ExacTax reduces the amount entered in this field by the amount of the allowable Form 8846 credit based on entry in Form Cr-4 for the associating activity before transferring the net amount to Form 8825, line 11 - Taxes.

Utilities

ExacTax transfers this amount to Form 8825, line 12 - Utilities.

Other expenses

Use the field to enter other expenses not entered elsewhere. ExacTax adds the items entered in the field to the following adjustments in the printed statements for Farm Rental Income and Expenses Worksheet and Form 8825, line 15 - Other.

Amortization (Form 4835-2)

Preproductive period expenses (Form 4835-2)

Meals and entertainment (Form 4835-2)

Guaranteed payments (Form 4835-2)

Start-up expenses (asset module)

Organization costs (asset module)





153




Enter an amount to override the amortization calculated from either the asset module or Form 4562 for this farm rental. ExacTax transfers this amount to Form 8825, line 15 - Other.


Enter the amount of preproductive period expenses. The amount you enter prints as a negative number with the description "263A." ExacTax transfers this amount to Form 8825, line 15 - Other. ExacTax also transfers this amount to Schedule K, line 13d – Other deductions.

Notes

ExacTax also transfers this amount to Schedule K, line 13d – Other deductions. Enter an amount, including 0 (zero), in the Preproductive period expenses (Force) field on Form SepK if you want to override the amount ExacTax transfers.

Use the Ptr Alloc field on Form SepK to allocate the amount of preproductive period expenses reported on Schedule K to partners.


Enter 100 percent of the meals and entertainment expenses. ExacTax automatically reduces this amount by 50 percent before transferring this amount to Form 8825, line 15 – Other. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.

Meals

Enter 100 percent of the meals expense for employees that are subject to the hours of service limitations of the Department of Transportation (DOT). ExacTax automatically reduces this amount by 20 percent before transferring this amount to Form 8825, line 15 – Other. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the nondeductible portion.



Enter the amount of health insurance considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Pensions and IRAs and Guaranteed payments: Other fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.




154

Enter the amount of pensions and IRAs considered guaranteed payments to partners. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health insurance and Guaranteed payments: Other fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4 – Guaranteed payments and line 13 – Other deductions.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of pensions and IRAs considered guaranteed payments reported on Schedule K, lines 4 and 13 to partners.


Enter the amount of deductible guaranteed payments to partners not related to health insurance or pensions and IRAs. ExacTax combines the amount entered in this field with the amounts in the Guaranteed payments: Health insurance and Guaranteed payments: Pensions and IRAs fields before transferring the net amount to Form 8825, line 15 – Other. ExacTax also transfers this amount to Schedule K, line 4.

Note: Use the Ptr Alloc field on Form SepK to allocate the amount of deductible guaranteed payments reported on Schedule K, line 4 to partners.


155

Cost/Basis Unrecog Gain Force Section**



Cost plus expense of sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 6] Form 1099-B adjustments

6781 Form 6781 - Contracts and Straddles

6P6781 01 10/24/16

Description (49)Loss

Entire Year [4]Gain

Entire Year [5]#

PARTNERSHIP

Mixed straddle election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]

Mixed straddle account election (25) [§ 2]

Straddle-by-straddle identification election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 4] Loss/gain for entire year

Overflow # 2016 39

ExacTax, Inc. 39

Description (59)#

Section 1256 Contracts Marked to Market

Gains and Losses from Straddles

Unrecognized Gain From Positions Held on Last Business Day

Cost/Basis[§ 12] Fair market value on last business day

Description (59)# FMV Last Day Tax Yr [12]

Cost or other basis as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28% rate gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Unrecognized gain (Section A losses from straddles) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 8] Gross sales price# Date Acquired Date Sold Sales PriceForce Period*


# Date Acquired Date Sold Sales PriceForce Period*



* Force Period1 = Short-term, 2 = Long-term, 3 = 28% rate

** Force Section1 = Section A - Loss from straddles, 2 = Section B - Gains from straddles

Description (40)

Description (40)

Description (40)

Description (40)

Date Acquired

Specially allocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [6]

[3]

[7]

[9]

[11][10]

[13]


156

Form [39] - Contracts and Straddles

Overview

Use this form to complete Form 6781, Gains and Losses From Section 1256 Contracts and Straddles.

General Information

Use this section to indicate if one or more of the following elections has been made or is currently being made by the client: Mixed straddle election, Mixed straddle account election, or Straddle-by-straddle identification election.

Section 1256 Contracts Marked to Market

Use this section to enter information regarding gains or losses from IRC section 1256 contracts open at the end of the tax year or closed out during the tax year.

Loss / Gain for entire year

Use the field for the Loss for entire year field to enter a description that identifies an account or contract transaction. Enter the amount of the gain or loss for the entire year without regard to any Form 1099-B adjustment that may be required.

Form 1099-B adjustments

Use the field to enter the positive or negative adjustments that may be required when the Form 1099-B that the client received includes a straddle or hedging transaction as defined in IRC section 1256(e)(2).

Gains and Losses from Straddles

Use this section to enter information regarding gains and losses from positions that are part of a straddle. You can force a different holding period as needed.

Gross sales price / … / 28% rate gain (loss)

Use the field for the Gross sales price field to enter a description of the disposed property when the disposition results in a gain or loss from straddles.

ExacTax determines the short-term or long-term holding period of a position based on the dates you enter in the Date Acq’d and Date Sold fields. Use the Holding Period field to force ExacTax to use a different holding period. Enter the closing price or the sale price for each position closed out or sold, the cost or other basis for each position closed out or sold, and the unrecognized gain from offsetting positions as of the last business day of the tax year.

In the cost field, include nondeductible interest and carrying charges allocable to property that is part of a straddle. The unrecognized gain is determined by subtracting the cost or other basis of the offsetting position from the settlement price of that position as of the last business day of the tax year.

Unrecognized Gain from Positions Held on Last Business Day

Use this section to enter information needed to complete Form 6781, Part III - Unrecognized Gains From Positions Held on Last Day of Tax Year.


157

Fair market value on last business day / Cost or other basis as adjusted

Use the field for the Fair market value on last business day field to enter a description of each position held at the end of the tax year if the settlement price of the position at the end of the tax year exceeds the cost or other basis as adjusted.

Enter the acquisition dates of the previously described positions, the fair market value of each position as of the last business day of the tax year, and the cost or other basis as adjusted for each position you have previously described. Do not include positions that are part of an identified straddle or hedging transaction, property that is stock in trade or inventory, or property used in a trade or business that is subject to depreciation.


158

SalesSale (2016)

Forms 4797 and 6252 - General Information

Sale Information

Form 4797, Part III - Recapture

Form 6252 - Current Year Installment Sale

Form 6252 - Related Party Installment Sale Information

Additional depreciation after 1969Soil, water and land clearing expensesApplicable percentage (If not 100%) (xxx.xx)

Intangible drilling and development costsApplicable payments excluded from income under section 126

Mortgage and other debts the buyer assumedCurrent year payments received

Related party nameAddress

Postponed gain due to casualty or theft

1250 26(a)

26(b)

26(d)

1252 27(a)

27(b)

1254

City, state, zip codeTaxpayer identifying numberWas the property sold a marketable security? (1 = Yes, 2 = No)Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)

Explanation if no tax avoidance purposeSelling price of property sold by related party

Sale to related party

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable

Additional depreciation after 1975Applicable percentage (If not 100%) (xxx.xx)

28(a)

1255 29(a)

Description

Treatment (A code should be manually entered for all assets not in the asset module)

Section 1250 propertyGross proceeds reported on Form 1099‐S or 1099‐BDisposition due to casualty or theft (Part III assets only; used to determine gains to carry to Form 4684, Section B)

State

Unit

Form1

24

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29 30 31

32

33

34

35

36

37

Sale 43A



159

Form [43A] - Sales

Overview

Use this form to enter asset sale information for Form 4797 and current-year installment sales for Form 6252. Use Form InstPY to enter prior-year installment sale information.

ExacTax uses the dates of acquisition and sale you enter in Form Sale to determine short-term versus long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sales.


The information in this section applies to all of the forms used to report sales of assets.

Unit / Form

ExacTax automatically enters the form and unit number when assets are transferred from the Form 51. Enter data in these fields only when you manually enter asset information and you want to use these fields for identification purposes.

Description

ExacTax uses this description, which automatically transfers from the Form 51, as the unit description in the folders block. This field is mandatory.

Note: ExacTax includes only the first 20 characters (Form 4797, lines 2a and 10a) or 40 characters (Form 4797, line 19a) of the sale description in the electronic file.

Treatment

Enter a code (1, 2, 3, 4, S, L, M, V, X, Y, or Z) based on the nature of the asset. ExacTax uses this code to control where the information appears on Form 4797 or Schedule D. The asset module automatically enters the appropriate code based on the nature of the asset.

Notes

Codes S, L, V, M, X, Y, and Z are not available in Form Sale in the Income & Deductions folder.

If you choose: code V, Section 1202 - 100% exclusion; code X, Section 1202 - 50% exclusion; code Y, Section 1202 - 75% exclusion, or code Z, Section 1202 - 60% exclusion, ExacTax does not list the transaction on Schedule D or Form 4797 but instead includes the amount on Schedule K, Other income (loss).

Disposition due to casualty or theft

Enter X to transfer the gain to Form 4684, Section B, Part II, Casualty or theft gains from Form 4797. Enter X only when code 3 is entered in the Treatment field in this section.

Sale Information

Use this section to enter general sales information.

Date acquired / sold

Enter V to print "Various" for the date on the return. Enter I to print "Inherit" for the date on the return.


160

Commissions and other expenses of sale

For all Form 4797 dispositions, ExacTax adds this amount to the cost or other basis of the property sold. For current year installment sales, ExacTax reports this amount separately.

Form 4797, Part III - Recapture

Use this section to enter information for Form 4797, Part III. The numbers listed on the left side of each field refer to the line numbers on Form 4797, Page 2. Do not use this section to enter information for assets that the partnership sold at a loss.

Applicable percentage

When recapturing depreciation already taken, the default applicable percentage is 100 percent. Enter a percentage (xxx.xx) in these fields to use a percentage other than 100 percent.

Form 6252 - Current Year Installment Sale

Use this section to enter information for current-year Form 6252 transactions. Use Form InstPY to enter prior-year installment sale information.

Current year payments received

Enter the total amount of the current-year payments received that have been applied to principal. Do not include interest.

Form 6252 - Related Party Installment Sale Information

Use this section to enter related-party installment sale information.

Date of second sale

If you enter a date that is more than two years after the date of sale and enter the selling price in the Selling price of property sold by related party field, ExacTax automatically marks Form 6252, The second disposition was more than two years after the first disposition (other than dispositions of marketable securities) and enters the date of disposition. If the second disposition occurred less than two years after the first disposition, additional income may be recognized on Form 6252.

Explanation if no tax avoidance purpose

Use the field to enter an explanation if the no tax avoidance exception applies to the disposition. If there is data in this field and the Special condition if applicable field is blank, ExacTax enters an X in the appropriate field on the form and prints the statement.


161

Like-Kind Exchanges8824 (2016)

General Information

Information on the Exchange

Computation of Gain and Basis

Related Party Exchanges

Adjusted basis of other property given upCash received

Fair market value of like‐kind property received

Liability assumedCash paidAdjusted basis of like‐kind property given upLiability given upExchange expensesTotal potential ordinary income under recapture rules

Name of related partyAddressCity, state, zip codeIdentifying numberRelationshipDuring this tax year, did related party sell or dispose of the property received? (1 = Yes, 2 = No)During this tax year, was the like‐kind property received sold or disposed of? (1 = Yes, 2 = No)Special condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)


Fair market value of non section 1245 like‐kind property received

Total potential unrecaptured section 1250 gain

Property given up

Property received


Date like‐kind property given up was acquiredDate property transferred to other partyDate like‐kind property received was identifiedDate like‐kind property received from other party

Fair market value of other property given up

State

Unit

Form

Fair market value of other (not like‐kind) property receivedInstallment obligation received in like‐kind exchange

1

23

4 5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29 30 31

32

33

34

35

36

37

8824 43B



162

Form [43B] - Like-Kind Exchanges

Overview

Use this form to enter like-kind exchange information for Form 8824 and current-year installment like-kind exchanges for Form 6252. Like-kind exchange information transfers directly to Form 8824 from the Form 51.

General Information

Use this section to enter general information about the like-kind exchange. Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module.

Unit / Form


Property given up

Enter the description of the property given up. ExacTax uses the description on Form 6252 and Form 8824 and in the ExacTax folders block. This field is mandatory.

State

Enter the state postal code (or select one from the drop-down list) to identify the state where this exchange occurred. The state postal code allows certain state-specific versions of ExacTax to determine if this information should be included in state calculations.

Treatment

The code (1, 2, S, L, or M) in this field describes the nature of the asset and tells ExacTax where to transfer the information on Form 4797 or Schedule D. Enter the code directly or select the code from the drop-down list.

Note: Codes S, L, and M are not available in Form 8824 in the Income & Deductions folder.


The dates in this section transfer to Form 8824, Part I and Form 6252, where applicable. The asset module automatically transfers the dates to these fields. Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module. Enter V to print "Various" or enter I to print "Inherit".


The amounts in this section transfer to Form 8824, Part III. Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module.

ExacTax does not automatically transfer to the tax return the gain or loss recognized on non like-kind property used in the exchange. To report the gain or loss on the non like-kind property used in the exchange, enter the exchange information for those items separately on the appropriate form, based on the correct reporting of the exchange.


163

Installment obligation received in like-kind exchange

Enter the installment obligation received in the like-kind exchange. When Form 8824, line 22 is a gain, ExacTax prints a statement that displays the calculated values for the gross profit and contract price transferred to Form 6252, lines 16 and 18 based on IRC section 453(f)(6) and Proposed Regulations section 1.453-1(f).

Note: If you enter an amount in this field, the gain from Form 8824, line 22 is not reported on Form 4797 or Schedule D. Instead, ExacTax transfers information from this like-kind exchange directly to Form 6252.


Use this section to enter information for related party exchanges. This data proformas for two years after the year of sale, unless either party has resold the like-kind property.


Use the field to enter your explanation as required by Form 8824 if the no tax avoidance exception applies to the disposition. If there is data in this field and there is no entry in the Special condition if applicable field, ExacTax enters an X in the appropriate field on the form and prints the statement.


164

Prior Year Installment SaleInstPY (2016)

General Information

Gross Profit and Contract Price

Installment Sale Income

Related Party Installment Sale Information

Income recapture from Form 4797

Gross profit percentage (Force) (xxx.xxxx)Current year payments receivedPrior year payments receivedBalance of unrecaptured section 1250 gain to be taxedTotal ordinary income to recapture (Section 1252, 1254, or 1255 property only)

Ordinary income previously recaptured

Related party nameAddressCity, state, zip codeIdentifying numberWas the property sold a marketable security? (1 = Yes, 2 = No)

Form

Unit

Description

TreatmentSection 1250 property

State

Date acquiredDate soldGross sales price or insurance proceeds receivedMortgage and other debts the buyer assumedCost or other basisDepreciation allowed or allowableCommissions and other expenses of sale

Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)


Qualified real property Section 1245/1250 percentageApply qualified real property percentage to current year payments received

1

23

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23 24 25

26

27

28

29

30

31

33

34

InstPY 43D



165

Form [43D] - Prior Year Installment Sale

Overview

Use this form to enter asset sale information for Form 6252, Installment Sale Income for prior-year installment sales. Enter prior-year installment sale information for assets with section 179 expense deduction in Form SalePT. Enter current-year installment sales in Form Sale or 8824. If you enter current-year installment sales in Form InstPY, ExacTax does not report them correctly on Form 6252, Form 4797, and Schedule D.

ExacTax uses the dates of acquisition and sale you enter to determine short-term versus long-term transactions.

General Information

Use this section to enter information that applies to prior-year installment sales.

Description

ExacTax uses this description in the folders block as the unit description. This field is mandatory.

Treatment

Enter a code (1, 2, 3, S, L, M, V, X, Y, or Z) based on the nature of the asset. ExacTax uses this code to determine where the information appears on Form 4797 or Schedule D. A proforma'd client automatically has the appropriate code based on the prior year's information.

Notes

Codes S, L, M, V, X, Y, and Z are not available in Form InstPY in the Income & Deductions folder.

If you choose: code V, Section 1202 – 100% exclusion; code X, Section 1202 - 50% exclusion; code Y, Section 1202 - 75% exclusion; or code Z, Section 1202 - 60% exclusion, ExacTax does not list the transaction on Schedule D or Form 4797 but instead includes the amount on Schedule K, Other income (loss).

Qualified Real Property Section 1245/1250 Percentage

For 1065-B returns, ExacTax proformas the qualified real property Section 1245/1250 percentage to this field when the prior year qualified real property asset was entered in the Asset module, and sold on the installment basis.

Notes

In the year of sale, the Asset module transfers the information related to a qualified real property asset sold at a gain, to two separate Sale forms. ExacTax applies the Section 1245/1250 percentage to all the amounts transferred from the Asset module.

If you enter the full amount of the payment received in the Total current year payments received field, enter X in the Apply Qualified Real Property Percentage to current year payments received field.

If you enter the payment received after applying the Section 1245/1250 percentage in the Total current year payments received field, clear the X in the Apply Qualified Real Property Percentage to current year payments received field.


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Apply Qualified Real Property Percentage to current year payments received

For 1065-B returns, ExacTax proformas an X to this field when a percentage is proforma’d to the Qualified Real Property Section 1245/1250 Percentage field.

Notes

If you enter the full amount of the payment received in the Total current year payments received field, enter X in this field.

If you enter the payment received after applying the Section 1245/1250 percentage in the Total current year payments received field, clear the X in this field.

In the year of sale, the Asset module transfers the information related to a qualified real property asset sold at a gain, to two separate Sale forms. ExacTax applies the Section 1245/1250 percentage to all the amounts transferred from the Asset module. ExacTax proformas these amounts to the InstPY form when the asset is sold on the installment basis.


Use this section to enter the gross profit and contract price information. ExacTax uses the information in this section to complete Form 6252, Part I, Gross Profit and Contract Price. ExacTax also uses this information to calculate the gross profit percentage if you do not enter one in the Gross profit percentage (Force) field in this form.



Gross sales price or insurance proceeds received

Enter the total of any money, face amount of installment obligation, and the fair market value of other property received. Also include any existing mortgage or other debt the buyer assumed or is subject to. The amount you enter must include the amount of any indebtedness assumed to properly report the installment sale.


Use this section to enter information for Form 6252, Part II, Installment Sale Income.

Gross profit percentage (Force)

ExacTax calculates the gross profit percentage using data entry in the Gross Profit and Contract Price section in this form. Enter a percentage (xxx.xxxx) to force ExacTax to use a different gross profit percentage.


Enter the total amount of current-year payments, including 0 (zero), applied to principal. Do not include interest. ExacTax prints Form 6252 if you enter an amount in this field or if the payment is a related-party transaction and Part III is required.

Prior year payments received


167

ExacTax uses the information you enter in the field to automatically produce an installment sale history at print time. ExacTax requires complete sale information to produce an accurate report. The printed statement reports current-year information first, so enter information in descending order.

The field fields are described here.

Year: Enter the prior year(s) the payment(s) was (were) received. ExacTax automatically reports current-year information on the first line of the printed statement. Enter payments in descending order.

Contract Balance: Enter the end-of-year contract balance for the applicable year. The printed statement reports the current-year contract balance net of the current-year principal payment.

Principal Received: Enter the principal payment received. This amount should equal the amount on Form 6252, Payments received during the year for the applicable year. ExacTax reports this column's total in this form and on Form 6252.

Reported Income: Enter the installment sale income that was reported on Form 6252, Installment Sale Income for the appropriate year.

Total Income: Enter the amount of gross profit for the installment sale. This amount was reported on this sale's initial Form 6252, Gross profit. This amount remains constant for all years that you enter in the field.

Unreported Income: Enter the gross profit amount that has not yet been reported as income.



Date of second sale

If you enter a date that is more than two years after the date of sale and enter the selling price in the Selling price of property sold by related party field, ExacTax automatically marks Form 6252, The second disposition was more than two years after the first disposition (other than dispositions of marketable securities) and enters the date of disposition. If the second disposition occurred less than two years after the first disposition, additional income may be recognized on Form 6252.


Use the field to enter an explanation if the no tax avoidance exception applies to the disposition. If there is data in this field and no data has been entered in either of the Date of second sale field or the Special condition if applicable field, ExacTax enters an X in the appropriate field on the form and prints the statement.


168

Casualty and Theft Loss4684 (2016)

General Information

Casualty or Theft Information

Replacement Information

Date acquiredProperty acquired from related party

Description replacement property DDescription replacement property CDescription replacement property BDescription replacement property A

Asset number

Holding period (1 = Short‐term, 2 = Long‐term)

Postpone entire gain

Accumulated depreciation

Property description is required for Form 4684, Section B, Part I, and calculation of the applicable column

Delete on next year's proformaDate of casualty or theft

A

Gain reported on Form 4797, Part III

Cost of replacement property

Casualty or theft number

Fair market value after lossFair market value before lossTotal net reimbursement

Cost or basisDate acquired

Property type (1 = Business, 2 = Income producing)

Description property DDescription property CDescription property BDescription property A

Occurrence description

DCB

State

Unit

Form1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

23

24

25

26

27

28

29

30

31

32

33

34

36

37

38

39

40

41

42

43

44

45

46

47

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

4684 43E



169

Form [43E] - Casualty and Theft Loss

Overview

Use this form to complete Form 4684, Page 2. If more than four assets are lost in the casualty or theft, add additional units of Form 4684 for the fifth and additional assets. Enter the same casualty or theft number for the assets lost in the same casualty or theft. Use a separate Form 4684 for each casualty or theft occurrence. Casualty and theft information transfers directly to Form 4684 from the Form 51.

Notes

Use Form Ponzi in the Schedule D folder to enter information for Form 4684, page 3.

ExacTax uses the dates of acquisition and casualty or theft you enter in Form 4684 to determine short-term versus long-term transactions and the appropriate part of Form 4797 in which to report the casualty.

General Information

Use this section to enter general information for the casualty or theft.

Unit / Form

Enter data in these fields when you manually enter asset information and you want to use these fields for identification purposes.


Enter a description of the casualty or theft event. ExacTax uses this description during proforma to determine how to collapse or remove events when there are more than four properties involved in the casualty or theft. This field is mandatory.


Enter a unique number for each casualty or theft. If there are two casualties in the current year, with two assets lost in the first casualty and one asset lost in the second casualty, enter 1 in this field in the first unit of Form 4684 along with the information for the two assets lost in the first casualty. Add a second unit of Form 4684 and enter 2 in this field. Enter the information for the asset lost in the second casualty in the second unit of Form 4684.

Date of casualty or theft

Enter the date of the casualty or theft. Only one date of casualty per occurrence is allowed. The date does not transfer to the return; however, ExacTax uses the date to determine short-term or long-term gains and losses.


Use this section to complete Form 4684, Section B, Part I.

Asset number

The asset number automatically transfers from the Form 51. The numbers do not transfer to the return, but serve as a link to the data in the asset module.


170

Property type

Enter 1 to indicate trade or business property or 2 to indicate income-producing property. The code you enter determines the column in which ExacTax reports losses for the casualties or thefts in Section B, Part II.

Holding period

ExacTax determines the short-term or long-term holding period of an asset based on the dates you enter in the Date of casualty or theft field and the Date acquired field. If you leave the date fields blank, ExacTax defaults to the short-term holding period. Use this field to force the holding period as either short-term or long-term.


Enter X if the gain on the casualty or theft is reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III when there is a long-term gain from the casualty or theft of depreciable property. If all or part of the gain must be recaptured, ExacTax reports the gain on Form 4684, Page 2, line 33 instead of Form 4684, Page 2, line 34.

Note: When you manually enter assets, you must also enter the amount to be reported on Form 4797 in Form Sale.


Enter X to postpone the entire gain on the casualty or theft if the replacement property was not acquired in the current year or only a portion of the replacement property was acquired in the current year. ExacTax proformas the information for the asset in Form 4684 to Form 4684PY in the following year.

Date acquired

Enter the date the property was acquired. Enter V to print "Various" for the date acquired. Enter I to print "Inherit" for the date acquired.


The accumulated depreciation should not include any section 179 expense deduction that was previously passed through to the partners. Assets that had section 179 expense deduction taken in a previous year and were lost in a casualty or theft should be entered in Form SalePT in the applicable folder.

Note: Electing large partnerships (Form 1065-B) report all casualty or theft occurrences on Form 4684. The accumulated depreciation should include the amount of any section 179 expense deduction taken in a previous year.

Fair market value before / after loss

Enter the fair market value of the properties before and after the loss. This information transfers to Form 4684, Page 2, lines 23 and 24. If you enter 0 (zero) or leave the Fair market value after loss field blank, ExacTax assumes that the casualty or theft totally destroyed the property. In that case, ExacTax calculates the loss without taking into account any decreases in fair market value.


Use this section to enter replacement property acquired in the year of the casualty or theft. ExacTax uses information from these fields in a postponed gain statement attached to Form 4684.


171

Property acquired from related party

Enter X if the replacement property was acquired from a related party. ExacTax recognizes the entire gain in full in the year of the casualty or theft.


172

Form 1065/1041 Schedule K-1 - Sale of 179 AssetK1Sale (2016)

General Information

Sale Information

Installment Sale Information



Gross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable excluding section 179Section 179 expense deduction

Sale is a prior year installment saleGross profit percentage (Force) (1065‐B only) (xxx.xxxx)

Mortgage and other debts the buyer assumedTotal current year payments receivedPrior year payments received

Related party name

Form

Unit

Description

Treatment

State

Disposition due to casualty or theft (Part III assets only; used to determine gains to carry to Form 4684, Section B)

Date acquiredDate sold

AddressCity, state, zip codeIdentifying numberWas the property sold a marketable security? (1 = Yes, 2 = No)Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)




Fair market value after lossFair market value before lossCasualty occurrence description

Income recapture from Form 4797 (1065‐B only)


Section 1250 property

Apply qualified real property percentage to current year payments receivedQualified real property Section 1245/1250 percentage

1

24

5

7

8

9

10

12

13

14 15

16 17

18 19

20 21

22 23

24

25

26 27

28 29

30 31

32

33

34

35 36 37

38

39

40

41

42

43 44

45

46 47

48 49

50

51

52

K1Sale 43G



173

Form [43G] - Form 1065/1041 Schedule K-1 - Sale of 179 Asset

Overview

Use this form to enter current-year sale and prior-year installment sale information for sales of assets for which a section 179 expense deduction was previously passed through from a passthrough entity in which the partnership is a partner.

General Information

Use this section to enter information that applies to current-year sales and prior-year installment sales of assets for which a section 179 expense deduction was previously passed through from the passthrough entity.

Description

Enter the description of the asset. This field is mandatory.


Enter X if the disposition was due to a casualty or theft. Enter X only if you entered code 3 in the Treatment field in this form.

Sale Information

Use this section to enter information for sales of assets for which a section 179 expense deduction was previously passed through from the passthrough entity. This information also creates a gross profit percentage for prior-year installment sales if you do not enter one in the Gross profit percentage (Force) field in this form (Form 1065-B returns only).




Use this section to enter installment sale information for assets for which a section 179 expense deduction was previously passed through the partnership to the partner.

Gross profit percentage (Force)

ExacTax calculates the gross profit percentage using data entry in the Sale Information section in this form. Enter a percentage (xxx.xxxx) to force ExacTax to use a different gross profit percentage than the percentage calculated. This field is applicable only to Form 1065-B returns.

Qualified real property Section 1245/1250 percentage

ExacTax proformas the qualified real property Section 1245/1250 percentage to this field when the prior year qualified real property asset was data shared from a partnership and sold on the installment basis.

Notes

In the year of sale, the information related to a qualified real property asset sold at a gain, is data shared from the partnership return to two separate K1Sale forms. ExacTax applies the Section 1245/1250 percentage to all the amounts data shared to form K1Sale.


174



Apply qualified real property Section 1245/1250 percentage to current year payments received

ExacTax proformas an X to this field when a percentage is proforma’d to the Qualified real property Section 1245/1250 percentage field.

Notes



In the year of sale, the information related to a qualified real property asset sold at a gain, is data shared from the partnership return to two separate K1Sale forms. ExacTax applies the Section 1245/1250 percentage to all the amounts data shared to form K1Sale. ExacTax proformas these amounts when the asset is sold on the installment basis.

Total current year payments received




Was the property sold a marketable security?

Enter 1 for Yes or 2 for No. If you leave this field blank and enter related party information, ExacTax answers No.


Use this section to enter casualty or theft information.


175

Sale of Section 179 AssetsSalePT (2016)

General Information

1065 Sale Information




Entries on this screen are ignored for 1065‐B returns

Description

Treatment


Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable excluding section 179Section 179 expense deduction

Mortgage and other debts the buyer assumed

Sale is a prior year installment sale

Prior year payments received


Casualty occurrence descriptionFair market value before lossFair market value after lossProperty type (1 = Business, 2 = Income producing)


Related party nameAddressCity, state, zip codeIdentifying numberWas the property sold a marketable security? (1 = Yes, 2 = No)Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)


State

Unit

Form



Apply qualified real property percentage to current year payments receivedQualified real property Section 1245/1250 percentage

1

24

6

7

8

9

10

11

12

13 14

16 17

18 19

20 21

22 23

24

25 26

27 28

29 30

31

32

33 34 35

36

37

38

39

40

41 42

43

44 45

46 47

48

53

54

SalePT 43H



176

Form [43H] - Sale of Section 179 Assets

Overview

When filing Form 1065, use this form to enter information for current-year or prior-year installment disposals of assets for which a section 179 expense deduction was previously passed through to the partners. For 1065 and 8865 returns, Forms 4684, 4797, 6252, and 8824 for the partnership are not completed for these types of asset dispositions. Instead, each asset disposition is separately reported on the Section 179 Sales Worksheet.

Notes

This form is not applicable to Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

General Information

Use this section to enter information that applies to disposals of assets for which a section 179 expense deduction was previously passed through to the partners.

Unit / Form


Description

If you have multiple units of this form, ExacTax uses this description (which automatically transfers from the Form 51) as the unit description in the folders block. This field is mandatory.


Enter X if this disposition is due to casualty or theft. Enter X only when 3 is entered in the Treatment field in this section.

1065 Sale Information

Use this section to enter general current-year and prior-year installment sale information for assets that were disposed for which a section 179 expense deduction was previously passed through to the partners. ExacTax ignores entries in this form for Form 1065-B.




Use this section to enter installment sale information for assets for which a section 179 expense deduction was previously passed through to the partners.

Qualified Real Property Section 1245/1250 Percentage

ExacTax proformas the qualified real property Section 1245/1250 percentage to this field when the prior year qualified real property asset was entered in the Asset module, and sold on the installment basis.


177

Notes

In the year of sale, the Asset module transfers the information related to a qualified real property asset sold at a gain, to two separate SalePT forms. ExacTax applies the Section 1245/1250 percentage to all the amounts transferred from the Asset module.



Apply Qualified Real Property Percentage to current year payments received

ExacTax proformas an X to this field when a percentage is proforma’d to the Qualified Real Property Section 1245/1250 Percentage field.

Notes



In the year of sale, the Asset module transfers the information related to a qualified real property asset sold at a gain, to two separate SalePT forms. ExacTax applies the Section 1245/1250 percentage to all the amounts transferred from the Asset module. ExacTax proformas these amounts to the SalePT form when the asset is sold on the installment basis.






Use this section to enter casualty and theft information.


178

Prior Year Casualty and Theft Loss4684PY (2016)

General Information

Prior Year Casualty or Theft Information


Description replacement property CDescription replacement property D

Date acquiredCost of replacement propertyPostponed gain

Total net reimbursement

Adjusted basis (Force)



Enter replacement property acquired within specified replacement period

Fair market value after lossFair market value before loss

Cost or basisDate acquiredHolding period (1 = Short‐term, 2 = Long‐term)


Description property DDescription property CDescription property BDescription property A



Description replacement property ADescription replacement property B

A B C D

Property description is required for Form 4684, Section B, Part I, and calculation of the applicable column

State

Unit

Form1

23

4

5

6

7

9

10

11

12

13

14

15

16

17

19

20

21

22

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29

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51

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63

64

65

66

4684PY 43I



179

Form [43I] - Prior Year Casualty and Theft Loss

Overview

Use this form to enter replacement property information for a prior-year casualty or theft. Enter current-year casualty and theft losses in the asset module or in Form 4684. If you enter current-year casualty or thefts in Form 4684PY, ExacTax does not report them correctly on Form 4684.

ExacTax uses the dates of acquisition and sale you enter in Form 4684PY to determine short-term versus long-term transactions.

General Information

Use this section to enter general information for the prior-year casualty or theft.


Enter a description of the casualty or theft event. ExacTax uses this description during proforma to determine how to collapse or remove events when there are more than four properties involved in the casualty or theft. This field is mandatory.


Enter the date of the casualty or theft. Only one date of casualty per occurrence is allowed. The date of casualty appears in a postponed gain statement if there is replacement property information.

Prior Year Casualty or Theft Information

Use this section to complete Form 4684, Section B, Part I.

Property type

Enter 1 to indicate trade or business property or 2 to indicate income-producing property. The code you enter determines the column in which ExacTax reports losses for the casualties or thefts in Section B, Part II.

Holding period

ExacTax determines the short-term or long-term holding period of an asset based on the dates you enter in the Date of casualty or theft field and the Date acquired field. If you leave the date fields blank, ExacTax defaults to the short-term holding period. Use this field to force the holding period as either short-term or long-term.

Date acquired

Enter the date the property was acquired. Enter V to print "Various" for the date acquired. Enter I to print "Inherit" for the date acquired.

Fair market value before / after loss

Enter the fair market value of the property before and after the loss. ExacTax allows you to enter 0 (zero) in the Fair market value after loss field.


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Use this section to enter replacement property acquired in the current year for a casualty or theft that occurred in a prior year. ExacTax uses information from these fields in a postponed gain statement attached to Form 4684.


181

Like-Kind Exchange of Section 179 Assets8824PT (2016)

General Information





Section 179 expense deduction passed throughDepreciation allowed or allowable excluding section 179Cost or other basis

Property receivedTreatment

Date like‐kind property given up was acquiredDate property transferred to other partyDate like‐kind property received was identifiedDate like‐kind property received from other party

Fair market value of other property given upAdjusted basis of other property given upCash received


Liability assumedCash paidLike‐kind property given up:

Liability given upExchange expenses

Name of related partyAddress of related partyCity, state, zip codeIdentification numberRelationshipDuring this tax year, did related party sell or dispose of property received? (1 = Yes, 2 = No)During this tax year, was the like‐kind property received sold or disposed of? (1 = Yes, 2 = No)Special condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)



Property given up Form

Unit

State


1

24

5

6

7

8

9

10

11

12 13

14 15

16 17

18 19

20 21

22 23

24 25

26 27

28 29

30 31

32 33

34 35

36 37

38 39

40

41

42 43 44

45

46

47

48

49

50

8824PT 43J



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Form [43J] - Like-Kind Exchange of Section 179 Assets

Overview

Use this form to enter information for the like-kind exchange of current year assets for which a section 179 expense deduction was previously passed through to the partners. For 1065 and 8865 returns, Form 8824 is not completed for these types of asset dispositions. Instead, each asset disposition is separately reported on the Section 179 Like-Kind Exchanges Worksheet for Schedules K and K-1. Like-kind exchange information transfers directly to Form 8824PT from the Form 51 where applicable.

Notes

This input form is not applicable to Form 1065-B, Electing Large Partnerships, except for data entered in Form 8824PT in the K1 1065, 1041 folder.

General Information

Use this section to enter general information about the like-kind exchange. Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module.

Unit / Form

Enter data in these fields only when you manually enter asset information and you want to use these fields for identification purposes.

Property given up

Enter the description of the property given up. ExacTax uses this description on the Section 179 Like-Kind Exchange Worksheet and in the ExacTax folders block. This field is mandatory.

State

Enter the state postal code (or select one from the drop-down list) to identify the state where this exchange occurred. The state postal code allows certain state-specific versions of ExacTax to determine if this information should be included in state calculations.

Treatment

The code (1 or 2) in this field describes the nature of the asset. Enter the code directly or select the code from the drop-down list.


Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module. Enter V to print "Various" for the date. Enter I to print "Inherit" for the date.


Use this section to enter general current year like-kind exchange information. Enter data in these fields to override data transferred from the Form 51 or to manually enter asset information when you do not use the asset module.


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Use this section to enter information for related party exchanges.


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Revenue Procedure 2009-20 (Ponzi)Ponzi (2016)

Computation of Deduction

Required Statements and Declarations


Force holding period (1 = Short‐term, 2 = Long‐term)

Tax years and dates filed for returns that do not satisfy the conditions of Revenue Procedure 2009‐20

Taxpayer identification number

City, state, zip codeAddress

Name of responsible individual or entity

Does the taxpayer intend to pursue third‐party recovery? (1 = Yes, 2 = No)

Potential insurance or SIPC recoveryActual recovery

Withdrawals for all yearsIncome reported in prior yearsSubsequent investmentsInitial investment


1

2

3

4

5

6

7

8

9

10

11

12

13

14 15 16

17

Ponzi 43K



185

Form [43K] - Revenue Procedure 2009-20 (Ponzi)

Overview

Use this form to enter information for Form 4684, Section C, Theft Loss Deduction for Ponzi-Type Investment Scheme Using the Procedures in Revenue Procedure 2009-20.


Use this section to enter information for Form 4684, Section C, Part I, Computation of Deduction.

Description

ExacTax uses the description to identify the casualty or theft on Form 4684. This field is mandatory.


ExacTax automatically assigns a unique casualty or theft number to each unit of Form Ponzi. This number does not transfer to the return; it is for informational purposes only.

Force holding period

Enter 1 for short-term or 2 for long-term. The entry in this field determines the holding period for the deductible theft loss amount reported on Form 4684, Part II, Summary of Gains and Losses. If you leave this field blank, ExacTax defaults to 2.

Does the taxpayer intend to pursue third-party recovery?

Enter 1 if the taxpayer intends to pursue third-party recovery or 2 if the taxpayer does not intend to pursue third-party recovery. The entry in this field determines the percentage of qualified investment that is deductible. If you leave this field blank, ExacTax defaults to 1.


Use this section to enter information for Form 4684, Section C, Part II, Required Statements and Declarations.


186

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187

Form [50] – General Depreciation

Overview Input Form Asset [50] is used to enter information for the calculation of depreciation and amortization, and the preparation of Form 4562 for assets that meet all of the following conditions:

not listed property

are 100% business use

See Form Asset -Listed/Other [51] for all listed property and non-listed property with less than 100% business use.

Caution All detail depreciation or amortization must be entered on detail forms [50] and [51].

Additional pages are available as necessary.

Overflow input is available for this form.

Multi-state overflow input is available for this form.

Protecting Americans from Tax Hikes Act of 2015 ExacTax has been updated for the Protecting Americans from Tax Hikes Act of 2015 as follows.

Bonus first‐year Depreciation — Qualified property placed in service between 1/01/15 and 12/31/19 is allowed first‐year bonus depreciation. The bonus depreciation percentage is 50% for property placed in service between 2015 and 2017, 40% for property placed in service during 2018 and 30% for property placed in service during 2019. In addition, the first‐year passenger automobile limits have increased by $8,000 for 2014 through 2017, $6,400 for 2018 and $4,800 for 2019.

Section 179 — The maximum amount of section 179 allowed has increased from $25,000 to $500,000, for 2015 and later tax years. Of the $500,000, up to $250,000 for the 2015 tax year can be expensed for qualified real property. In addition, the $200,000 investment limitation has been increased to $2,000,000.

Qualified real property for section 179 —Qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) placed in service in a 2015 tax year is eligible for section 179 expensing. The maximum amount of section 179 expense allowed for qualified real property is $250,000.

Leasehold Improvements, Retail Improvements and Restaurant Building Improvements — The Method/Life Wizard has been updated for Leasehold Improvements, Retail Improvements and Restaurant Building Improvements to permanently use the 15‐year recovery period.

Indian Reservation Property — The Indian Reservation and Indian Reservation Farm Method have been updated to allow the accelerated depreciation for business property through 2016.

Depreciation

General The Input Form 4562 [50] contains input for up to six assets and up to five different computations per asset on a page. The various computations used for Tax, AMT, State, State AMT, etc., will be referred to as ‘treatments’. Each treatment may have a different set of values for cost, method, life, etc., where allowed. ExacTax will automatically use the appropriate default values that are derived from the Tax (federal) treatment for the other treatments. In general you only need to enter the information for the Tax treatment and any prior year data, such as prior depreciation or Section 179 that is different for the other treatments.


188

For new clients the following chart shows the default treatments that are created:

Entity Type Default Treatments 1065 Tax, Book, State, AMT, State AMT (for certain states) * 1120 C Tax, Book, State, AMT, ACE, State AMT (for certain states)* 1120S Tax, Book, State, AMT, State AMT (for certain states) * 1041 Tax, State, AMT, State AMT (for certain states) *

Entity Type Default Treatments 1040 Tax, State, AMT, State AMT (for certain states) * 990 E Tax, State, AMT , State AMT (for certain states) * 990 PF Tax, State, AMT , State AMT (for certain states) *

* When a state return is present for CA, WI or IA.

The depreciation treatment is not applicable for some state returns.

For some states, the depreciation treatment is not needed and will not be used by the ExacTax state return. The treatment will not compute when that ExacTax state return is added to the client.

Depreciation may not be applicable because:

the state return is not an income tax return.

state depreciation is not calculated different from federal depreciation.

the state adjustment for the federal bonus depreciation is an addback of the amount taken on a federal form (rather than the difference between depreciation calculated with the bonus and depreciation calculated without the bonus). These states include:

Entities State1040 & 1065 CT, IL, MN, NC, NE, and OH1120C IL, MN, NC, NE, OH, OK, and PA1120S CT, IL, MN, NC, NE, OH, and OK1041 AZ, IL, MN, NC, NE, OH, and OK

Related Schedules/Forms Enter the unit number of the Input Form to which this Input Form [50] relates (A, C, E, F, etc.). For example, to attach the depreciation to Form C [28], unit 2, enter 2 in the box for C#. To attach the depreciation to the first Form 2106 [72], enter 1 in the box for 2106#.

All depreciation on this particular Input Form [50] will carry to the indicated form.

Note If all attachment boxes are blank, or the Schedule or Form unit indicated does not exist, depreciation will be carried to Schedule A.

Tax Assumptions The following items represent tax assumptions built into ExacTax. If you want to create a different result than the program because you disagree with any of the assumptions, you may always force the desired depreciation for any asset.

Description This field is limited to 20 characters.

Date in Service ExacTax assumes that any date after 12/31/29 is in the 1900s and any date before 01/01/30 is in the 2000s. Enter the full date (mmddyy) the property was first placed into service. An entry here is mandatory for all assets. This includes assets that are not being depreciated such as vehicles using the mileage method and a Home Office in a rental. Do not enter “V” for “VARIOUS” as the date. Entries with an invalid date will be defaulted to 01/01/Tax Year} for assets with no prior depreciation/amortization and 01/01/{Prior Year} for assets with prior depreciation/amortization.

Cost or Basis


189

Enter the cost or other basis of the asset. Do not adjust the cost by any Section 179 expense, Section 168(k) (Bonus depreciation), ITC, Salvage value, or prior years’ depreciation that may have been taken. The system will automatically make the appropriate basis adjustment from other input. Use the state treatment column only for assets with a different initial state basis. A negative entry is allowed a will compute a negative amount for depreciation.

Method of Depreciation Enter the method of depreciation from the following list. This is a mandatory entry even when the item is fully depreciated, fully expensed, etc. However, you may enter only the description and date in service if you are entering listed property on Form [51] or Home Office on Form [52]. The state method should be entered only when it is different from the federal method. The AMT treatment will automatically use the applicable method and life based on the method, life and date in service.

MACRS (Post 1986 Acquisitions) Code Method Valid LivesM MACRS (200% DB) 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS SL MACRS Straight-line 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS SL ADS MACRS Straight-line ADS life Any*** (Enter in the ADS Life field) MACRS 150 MACRS 150% & farm property 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS 150 MACRS 150% & farm property Any*** (Enter in the ADS Life field)

*Residential Rental Property ** Nonresidential Real Property, 39 Years after 5/13/93 ***Also requires the regular MACRS class life in the Life field

ACRS (Post 1980/Pre 1987) Code Method Valid Lives Valid ADS Lives A ACRS 200DB 3, 5, 10, 15, 18, 19 (after 5/08/85) ACRS SL ACRS Straight-line 3, 5, 10, 15, 18, 19 (after 5/08/85) 3, 5, 12, 25, 35, 45

Non-Recovery (Includes Pre-1981)

Code Method Valid Lives ST Straight-line Any 125 125% Declining Balance Any 150 150% Declining Balance Any 200 200% Declining Balance Any

Other

Code Method Valid Lives A Amortization Any L Land N/A M Memo entry Any U Units of Production Enter current units in Life; Total units in ADS Life Y Sum of Years Digits Any

Life or Recovery Period This is a mandatory entry even when the asset is fully depreciated, fully expensed, etc., except for methods L (Land) and M (Memo entry). For residential rental property with a 27½ year life and for nonresidential property with a 31½ life, the half year is assumed and should not be entered.

Mid-Quarter Convention ExacTax applies the mid-quarter test to all of the client’s “appropriate” assets to determine whether the mid-quarter convention applies. If it does apply, ExacTax recalculates MACRS depreciation for the applicable current-year assets. An appropriate asset is defined as an asset in the Tax column that is:

A current-year MACRS asset (except 27.5, 31.5, and 39-year real property)

Not marked in the Mid-Quarter & Section 179 Force Options on Form [53] to exclude from mid-quarter determination

Not disposed of in the current year


190

Not a luxury auto expensed using standard mileage

A current-year real property MACRS asset, which is marked in the Mid-Quarter & Section 179 Force Options on Form [53] to include in the mid-quarter determination

Note: To force MACRS property (5, 10, 15, 20, and 25 yr) to be treated as real property, on Form 53 you need to mark the Exclude from mid-quarter determination (force) checkbox in the Mid-Quarter & Section 179 Force Options and Not eligible section 179 property.

ExacTax uses the entire basis of the new component asset acquired through a trade or a replacement of a casualty / theft in the mid-quarter convention calculation.

For luxury autos or listed property, the mid-quarter determination uses the business percentage of the cost shown in the Tax column.

Assets that have been expensed under section 179 are not included in the mid-quarter determination. However, if an asset was partially expensed, then the amount subject to depreciation is included in the calculation.

ExacTax uses the basis of the asset without reduction for the section 168(k) bonus depreciation when calculating the mid-quarter convention test.

Depreciation Convention ExacTax will automatically compute the applicable convention for MACRS personal property; mid-month, mid-quarter or half-year for current year assets. If the mid-quarter convention was used on a prior year asset, check the Prior Mid-qtr box just below the Asset # field. To override the convention computation for an individual current year asset, use Form Asset-Other [53].

Enter the same activity and unit number at the top and enter the asset number in the applicable field.

In the Mid-Quarter and Section 179 Force Options section check the box Asset calculated using mid-qtr

This Force affects only this asset. You may also check the box to Include in mid-quarter calc, which will incorporate the cost into the ExacTax computation of applicable convention that is applied throughout the return. Collate this Form immediately behind the Form 50, 51, 52 or 2106 containing the asset that is being forced.

Section 179 Enter the amount to be expensed under Section 179. ExacTax will automatically adjust the cost (or other basis) to determine the depreciable basis. For assets placed in service during the current year, ExacTax

will apply all applicable limitations to determine the allowable Section 179 expense deduction. Even when an asset is to be fully expensed, the date placed into service, method of depreciation, and life must still be entered.

Section 179 Total Property The total cost of section 179 property placed in service during the current year is the sum of the cost basis (adjusted for the business use percentage) of all personal property assets in all activities, except the Misc activity, placed in service in the current year with a depreciation method other than memo, land, or amortization not coded as computer software.

Section 168(k) (Bonus Depreciation Post 09-10-01) Bonus depreciation deduction was added by the Job Creation and Worker Assistance Act of 2002, (March 9, 2002), and will remain in effect for most property purchased and placed in service through 12/31/2004. The Act generally requires an additional first year depreciation deduction for qualified property placed in service after September 10, 2001. For qualified property placed in service after May 5, 2003, the bonus rate was increased to 50%. The term “qualified property” is defined in Section 168(k)(2). The additional first year depreciation deduction is allowed for both regular tax and alternative minimum tax purposes for the taxable year in which the qualified property is placed in service. Currently, many states do not follow the federal law on this deduction and ExacTax will compute a state if different adjustment when required.

The new law requires that bonus depreciation be taken on all qualifying property, unless an election out is made on a class-by-class basis: 3, 5, 7, 10, 15, 20-year property and computer software. See Input Form Asset-Bonus Depreciation Elections [54] for information on making current year elections and indicating any prior year elections that were made.

The amount of Bonus depreciation claimed in not shown in the treatment as a separate item. Prior Bonus is included in the Prior Depreciation field and current Bonus is included in the Current Depreciation field.

The initial system assumption is that most property qualifies, other than real property, unless otherwise indicated. Used property that is purchased does not qualify. Identify used property by checking the ‘Used’


191

box located above the Date in Service field. To stop Bonus from being claimed on property without checking ‘Used’, enter a code ‘P’ in the Sec 168(k) type (Bonus)field.

Certain Leasehold Improvement property may also qualify for bonus depreciation. The system default is that real property (with lives of 27.5, 39 or 40) does not qualify for additional bonus depreciation. To indicate qualified leasehold improvement property, enter a code ‘L’ in the Sec 168(k) type (Bonus) field located at the bottom of the treatment columns. This must be entered for each qualified leasehold improvement. See the chart that follows for all Sec 168(k) type (Bonus) codes:

Qualified Property Property will be considered qualified for the automatic calculation of additional bonus when:

Date in service = Current year AND

Business Use Percentage is greater than 50% AND

The current year depreciation is not overridden AND

Used property is not indicated AND

The asset has not been disposed AND

A MACRS Method is used AND Class Life = 3, 5, 7, 10, 15 or 20 OR

A MACRS Method is used AND

Leasehold Improvement is indicated with an ‘L’ in the Sec 168(k) type (Bonus) code AND

No election out has been made for that asset’s class.

Note: Where the current year depreciation is manually entered, it must also include the bonus depreciation.

Sec 168(k) Type (Bonus) Codes

Code Description C Computer Software L Leasehold improvement N NY Liberty Zone real property NYLZL NY Liberty Zone leasehold improvement P Property is not qualified (for reasons other than being used property)

Salvage Value For Nonrecovery property, enter the salvage value.

Form 4255 – Investment Tax Credit

For Form 4255, line 3, ExacTax uses the greater of the amount claimed or the amount calculated.

To enter Investment Tax Credit information: Enter the credit code form the list that follows.

Note: ExacTax automatically calculates the credit amount. If you disagree with this amount, you can enter your manually computed amount in the amount field next to the code.

No additional information is necessary for the Solar Energy, Geothermal Energy, or reforestation credits.

For credit codes R, C and T, use Form Asset-Other [53] to enter additional information. Enter the same activity and unit number at the top and enter the asset number in the applicable field. Enter the required information in the Investment Credit Information section. The items to enter vary depending on the credit code entered in step 1.

CodeDescriptionA Alternative Fuel CreditR Rehabilitation Credit (Pre-1936 building)C Rehabilitation Credit (Certified Historic Structure)S Solar Energy Credit


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CodeDescriptionG Geothermal Energy CreditF Reforestation CreditI Hawaii Excise Tax Credit (enter in HI treatment only)T ITC (Transition rules; adjust basis by full credit)O Other Credits (adjust basis by full credit)

To enter Hawaii Excise Tax Credit Information: Enter a code I in the ITC code field.

Note: ExacTax automatically calculates the credit amount. If you disagree with this amount, you can enter your manually computed amount.

Enter information in the applicable fields in the Hawaii excise tax credit section on Form Asset -Other [53].

Amortization Section For property being amortized, (method AM). Enter the IRC section which entitles the deduction (i.e. ‘461’ for mortgage points) in the Amortization Section field from the following list. This entry does not affect the amortization computation but could affect where the deduction is claimed. If amortization is used on an asset linked to Schedule A, such as points on a refinance, you must enter code 461. For amortization to Schedule A, when this is left blank, or any other code section is used, the deduction will be taken to the Miscellaneous, Subject to 2% of AGI section instead of to the Mortgage Interest section.

Code Description167 Computer software169 Pollution Control Facilities171 Certain Bond Premiums173 Circulation Expenditures174 Research and Experimental Expenditures178 Cost of Acquiring a Lease184 Railroad Rolling Stock194 Qualified Forestation and Reforestation Costs195 Business Start-up Expenditures197 Goodwill and Other Intangibles248 Organizational Expenditures (Corporations)263 Intangible Drilling Costs461 Mortgage Points616 Development Expenditures617 Mining and Exploration Expenditures709 Organizational and Syndication Fees (Partnerships)

Prior Depreciation Enter the depreciation allowed or allowable in prior years.

Caution

Do not include any Section 179 expense in this amount. Bonus depreciation should be included.

Regardless of whether the correct depreciation was taken in prior years, ExacTax still calculates the correct current depreciation according to the method you specify. If incorrect depreciation was taken in a prior year, ExacTax does not adjust the current depreciation so that the ending accumulated depreciation is correct. Also, if YTD depreciation is incorrect for monthly or quarterly periods, ExacTax calculates an adjusted current-period depreciation so that YTD plus current depreciation yields the correct ending amount through the end of the current period. The current-period depreciation could be a negative amount in that case.

Current Year Depreciation If this field is blank, the system will automatically compute the current year depreciation amount, based on the applicable convention for the year. An entry in this field will override the automatic system computation.


193

Alternative Minimum Tax Life Post 1998 (MACRS) For computing alternative minimum tax depreciation for property placed in service after 1998 that uses the 200% declining balance method (method M) ExacTax uses the 150 % declining balance method and the same recovery period used for regular tax. No preference adjustment is computed for any asset using straight-line (MACRS SL), MACRS 150, ADS class life or has claimed the Bonus depreciation.

Post 1986 – Pre 1999 (MACRS) Enter the life for computing alternative minimum tax depreciation if you wish to override the system defaults.

AMT Calculation The following table shows when ExacTax performs the automatic AMT calculations:

Method Used Real Property Personal: New or Used MACRS: accelerated for personal, S-L for real property

Automatic AMT calc Automatic AMT calc

MACRS: straight-line Automatic AMT calc

Alternative Depreciation System: MACRS (150% D.B.)

Automatic AMT calc

Regular ACRS accelerated percentages Automatic AMT calc Optional ACRS straight-line percentages Automatic AMT calc. when using

accelerated life

Straight-line 125% declining balance Automatic AMT calc 150% declining balance Automatic AMT calc 200% declining balance Automatic AMT calc Sum-of-the-year’s digits Automatic AMT calc Straight-line amortization Memo asset (no depreciation)

* = Automatic AMT calc. ** = Automatic AMT calc. when ADS life is not equal to 40 years

*** = Automatic AMT calc. when using accelerated life

For personal property not qualified for section 168(k) acquired after 12/31/98, AMT and the 150% election under MACRS are calculated over regular MACRS lives instead of Alternative Depreciation System lives.

For qualified 168(k) assets, the AMT treatment is calculated the same as the Tax treatment.

Rounding If an asset’s remaining amount to be depreciated is $1.01 or less, ExacTax automatically adds it to the current depreciation amount and sets the remaining amount to zero to prevent later rounding problems.

Limit ACRS/MACRS to Life By default ExacTax does not depreciate ACRS/MACRS assets beyond their asset lives. However, two situations exist where ExacTax does not limit ACRS/MACRS assets: (1) when a client has a short year, and (2) when an asset is a luxury auto.

Luxury Autos (Passenger) In the case of section 179 property coded as listed property or a luxury auto, ExacTax uses the IRS tables instead of the formulas in the IRC to calculate the current depreciation. During the recovery period, the remaining basis of these assets reflects the cost of the asset adjusted by the percentage of business use, less actual depreciation taken. If you enter a section 179 expense that exceeds the limit in the first year, ExacTax adjusts the section 179 amount.

If using MACRS tables, the sixth year limits depreciation to the lesser of 5.76% or the appropriate sixth year limited amount.

Prior Alternative Minimum Tax Depreciation–Federal

Enter total federal prior year depreciation for AMT purposes.


194

Current Alternative Minimum Tax Depreciation–Federal

Enter the current year AMT depreciation if you wish to override the automatic system computation. This amount will be reflected on the supporting statement for AMT depreciation.

If related to a non-passive activity, total depreciation adjustments and preferences will carry to line applicable lines of Form 6251. For passive activities, the depreciation adjustment and preference is incorporated in the passive activity loss computation and the net adjustment is carried to the passive activity line on Form 6251.

Prior Alternative Minimum Tax Depreciation–State if Different

Enter total state prior year AMT depreciation.

Current Alternative Minimum Tax Depreciation–State if Different

Enter the current year AMT depreciation amount if you wish to override the automatic system computation. This amount will be reflected on the supporting statement for AMT depreciation.

California If related to a non-passive activity, total depreciation adjustments and preferences will carry to Schedule P. For passive activities, the depreciation adjustment and preference is incorporated in the total passive activity adjustment for Schedule P.

Dispositions For current year automatic dispositions related to entries on Input Forms 50, 51, 52 and 2106, see Form Asset-Disposal [55A]. You may also use Form Sale to report a disposition, but all amounts must be manually entered there and certain limitations apply. For more information, see Form Sale.

Luxury Auto (Passenger), Listed Property Disposal When a luxury auto or listed property is sold or is a casualty/theft loss that is not replaced, the Cost/basis field on the Form Asset-Disposal [55A] reflects the cost of the asset adjusted for the business use. The depreciation allowed or allowable is the actual prior depreciation.

When a luxury auto or listed property is traded or is a casualty/theft loss that is replaced, the Adjusted basis original asset field on the Form Asset-Disposal [55] reflects the cost of the asset adjusted by the percentage of business use, less actual depreciation taken.

Delete from Proforma To delete this asset from next year’s proforma and from the Next Year’s Depreciation schedule see Form Asset-Disposal [55A]. The asset remains until the disposal method on Form 55’s is changed to Sold / Scrapped [55A], Like-Kind Exchange [55B], or Casualty / Theft [55C].


195

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196

Form Asset [51] - Listed Property / Other

Overview Input Form Asset-Listed Prop/Other [51] is used to enter information for the calculation of depreciation and amortization, and the preparation of Form 4562 for assets that meet all of the following conditions:

listed property or non-listed property with less than 100% business use

not related to a home office

See Form Asset [50] for all regular depreciable property.

Additional pages are available as necessary. Up to six vehicles may be attached to the same activity (i.e. you may have six vehicles to Schedule C #1 and six to Schedule C #2).

Multi-state overflow input is available for this form.

Overflow is not available for expense detail (Additional Vehicle Information section). Limit your entries to the fields provided.

General Depreciation Complete the related form/schedule and asset detail entries for all treatments the same as for Input Form Asset [50]. Make additional entries in the Vehicle/Listed Property (and Other Business %) section based on the asset type:

Listed vehicle

Other listed property

Non-listed property with a business use percentage

Note: If no entry is made in the Vehicle/Listed Property (and Other Business %) section the asset will be treated as non-listed property at 100% business use.

For vehicles only, complete the sections for Vehicle Use, Additional Vehicle Information, Form 4562 Vehicle Questions [This Vehicle] and Form 4562 Vehicle Questions [All Vehicles].

Listed Vehicles In the Type of Property section check the box to indicate the asset type:

Luxury auto (passenger) Use this property type for "passenger automobiles." Passenger automobiles are four-wheeled vehicles primarily used on public roads and are rated at 6,000 pounds unloaded gross vehicle weight or less. (For a truck or van, the gross vehicle weight is substituted for unloaded gross vehicle weight.) The limits for passenger automobiles are applied to assets coded for this property type.

Van or light truck (applies only to assets acquired on or after 01/01/2003) Use this property type for trucks and vans placed in service after 2002 that are not qualified for non-personal use vehicles or are passenger automobiles built on truck chassis, including minivans and sport utility vehicles built on truck chassis.

Note: If Van or light truck is selected for a vehicle placed in service before 01/01/03, ExacTax will default to Luxury Auto (Passenger).

Exceptions for Luxury Auto (Passenger) and Van or light truck property types:

The following vehicles are not considered passenger automobiles.

Ambulances, hearses, or combination ambulance/hearses that are used in your trade or business

Vehicles used in your trade or business of transporting persons or property for compensation or hire

Any truck or van placed in service after July 6, 2003 that is a qualified non-personal use vehicle.

Electric vehicle (must be 100% electric. Does not apply to hybrids) Use the Electric vehicle type for assets that are "electric passenger automobiles." These vehicles are primarily produced by an original equipment manufacturer and designed to run primarily on electricity. The limits for electric passenger automobiles are


197

applied to assets coded for this property type.

Listed vehicle In general, use this property type for any vehicle property that is both:

Not considered a passenger automobile or an electric vehicle, and

Is used for transportation, if the property lends itself to personal use (such as motorcycles, pick-up trucks, and so on).

The luxury auto limits are not applied to the depreciation for the current year for assets that are coded as Listed vehicle.

Sport utility vehicle Use this property type for sport utility vehicles and certain other vehicles. These vehicles cannot elect to expense more than $25,000 of the cost of the vehicle if placed in service after October 22, 2004. This applies to any four-wheeled vehicle primarily designed to carry passengers over public streets, roads, or highways that is not subject to passenger automobile limits and is rated at no more than 14,000 pounds gross vehicle weight.

Exceptions for Sport utility vehicles The section 179 limit does apply to any of the following vehicles:

Vehicles that are designed to have a seating capacity of more than nine persons behind the driver’s seat.

Vehicles that are equipped with a cargo area of at least six feet in interior length that is an open area, or designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment.

Vehicles that have an integral enclosure that fully encloses the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

Note: For more information, see the IRS Form 4562 Instructions

Listed non-vehicle All listed property other than vehicles. Assets with this indication will print on Form 4562, page 2. No special limits are applied to these assets. If the business use is less than 100%, enter the applicable percentage in the Listed Property (and Other) section. Check the applicable boxes in the Form 4562 Client Evidence Questions section.

Note: There is no default response for these questions. If a box is not checked then the corresponding box on the Form 4562 remains blank.

Other (for business use percentage)

All non-listed property where a business use percentage applies. Enter the applicable percentage in the Listed Property (and Other) section. These assets will be printed on Form 4562, page 1.

Additional Vehicle Information Vehicle Use Enter the Total miles and the Business miles to have ExacTax compute the business use percentage or enter your manually computed percentage in the Business use % (Override) field.

Expenses Enter all related operating expenses should be entered on the income statement Form [20].

Form 4562 Vehicle Questions By default ExacTax leaves these questions blank. Check the applicable boxes in the Form 4562 Vehicle Questions [This Vehicle] for each vehicle entered. You only need to complete the questions in the Form 4562 Vehicle Questions [All Vehicles] section once for the entire return. It does not matter which Form 51 you enter this information on.

Section 280F Recapture When current and prior depreciation is present and the current business use percentage drops to 50% or less, an automatic recapture under Section 280F will be computed. If the amount recomputed using straight-line, without Section 179 or bonus depreciation, exceeds the prior depreciation, the excess will transfer to Part V of Form 4797. If an accelerated method is being


198

used, the depreciation method will be defaulted to straight-line with a five-year life.

Note: You must also enter the recapture amount in the Other income section of the related Schedule C, E, F or Form 4835.


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200

Form [53] - Other tab

Overview Use this form to enter miscellaneous information.

Date acquired Enter the acquisition date for the current asset if it differs from the in-service date entered at the top of the Asset Detail dialog.

Note: The acquired date is for reporting purposes only and is not used in the depreciation calculations.

Section 168(f)[1] Mark this checkbox if you elected to depreciate this asset using either the units of production method or a method that is not based on terms of years. You must also select a custom method for calculating depreciation from the Method field in the Depreciation tab.

Tracking partner’s outside basis (1065 only) Mark this checkbox if this asset is used to track a partner’s outside basis for a 1065 client. If this checkbox is marked, the asset will not be included on any form printed from UltraTax CS by default.

Include memo asset on balance sheet Mark this checkbox to include this asset in the Balance Sheet Detail report if Memo is selected as the treatment’s depreciation method.

Qualified section 179 real property Mark this checkbox to indicate the current asset is qualified section 179 real property.

Notes

This checkbox is available only for current-year real property assets when the client’s processing period is tax year 2010 or 2011.

This checkbox is available for the current asset if the Tasks > Designate as Real Property option is selected.

This checkbox is automatically marked if one of the following asset classes is selected from the Method/Life Wizard for the asset.

Leasehold improvement (qualified)

Restaurant building improvement

Retail improvement

990 investment property Mark this checkbox to indicate that the current asset is 990 investment property.

Note: This checkbox is available only for 990 clients.

990 PSA code Select the appropriate program service achievement (PSA) code.

Note: This field appears only in the Indirect activity for 990 clients.

Amortization section If you indicated in the Method field in the Depreciation tab that the asset is to be amortized, choose the applicable amortization code from the drop-down list.

GO Zone/168(k) (force) To force an asset to calculate bonus depreciation, select the appropriate type from this field. For details on each type of bonus, see the overview of the GO Zone/168(k) (force) field.

Notes

If you enter a force type in this field and are calculating the AMT and/or ACE treatment for the current asset, you need to choose Tasks > Generate AMT and Tasks > Generate ACE.

Bonus depreciation is automatically calculated for assets placed in service between 9/11/01 and 12/31/04 or 1/1/08 and 12/31/10 for treatments that comply with the section 168(k) bonus and are depreciated by:


201

any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long the MACRS class life has not been elected out.

amortization with 167 - Computer software selected in the Amortization section field in the Other tab, as long as the Computer 167 class life has not been elected out.

Fixed Assets CS automatically calculates bonus depreciation for assets marked as located in the GO Zone between 8/28/05 and 12/31/07 for treatments that comply with the GO Zone bonus and are depreciated by:



Bonus depreciation is automatically calculated for assets marked as located in a Disaster Area after 12/31/07 and occurring before 1/1/10 for treatments that comply with the Disaster Area bonus and are depreciated by:



Memo 1 Use this field to enter a general memo regarding this asset.

Memo 2 Use this field to enter a second general memo regarding this asset.

Mid-Quarter & Section 179 Force Options button Click this button to open a dialog in which you can do the following tasks.

Force an asset to be included in or excluded from the mid-quarter determination.

Force an asset to calculate using the mid-quarter convention.

Force an asset to be considered eligible section 179 property.

Prevent an asset from being considered eligible section 179 property.

Credit Information button Click this button to open a dialog in which you can enter investment credit, Hawaii excise tax credit, and Alternative motor vehicle credit information.

Note: This button is available if one the following conditions are present.

credit code R, C, I, A, L, N, or O is entered in the Credit field in the asset’s Depreciation tab

1040 clients are calculating a state treatment of HI, ID, NY, OR, or RI

1120 clients are calculating a state treatment of HI, ID, or WI

1065 clients are calculating a state treatment of HI

If an association name is followed by an asterisk and is displayed in blue, the association is used for the UltraTax CS personal property tax return for the state in which the current asset is located.

Note: If you are using three or fewer associations, no fields appear in the Associations group box.


202

Bonus Depreciation Elections

Elected All Elected All

Qualified 50%Elected 30%Bonus

6IBONDEP 01 10/31/16

Use this form to indicate the asset classes that have elected out of the bonus depreciation per IRS Code section 168(k). When no election isindicated, the system will assume that bonus was taken for all qualified assets in that year's class. To stop bonus from being assumed on aindividual qualified asset, mark the asset as 'used' or enter 'P' in the Bonus code on the individual asset.

ALL SYSTEMS

Asset class: Elected Out of50% Bonus

MACRS 3-YearMACRS 5-YearMACRS 7-YearMACRS10-YearMACRS 15-YearMACRS 20-YearMACRS 25-YearMACRS 27-YearMACRS 39-YearComputer Software (sec. 167)

Elected All

Asset class: Elected Out of Bonus2002 Qualified 30%


Elected Out of BonusQualified 50% (after 5/5/03)

Elected 30% Bonus



Elected Out of BonusQualified 50% (after 5/5/03)

Elected 30%Bonus



Elected Out of Bonus

Elected All

Elected All Elected All Elected All

Elected All Elected All

542016

ExacTax, Inc. 54

Asset

Elected All

2007

(2007applies to

1120/1120S/

1065/1041only)

Elect Out of Bonus

2010Qualified 50%/100%

* When "Elect All" is checked, the election statement is automatically printed. If only some classes are elected, enter election codes on Form Elect {2}

Elect 50% Bonus

orororororororororor

2008 20092011

Elect Out of BonusQualified 100%

Elected Out of50% Bonus

Elected Out of50% Bonus

2012Elect Out of Bonus

Qualified 50%

Elect All

Elected All *

*

Elect Out of BonusQualified 50%

Elect All*

2013

2014Elect Out of Bonus

Qualified 50%

2015

Elect All*

2016


203

Form [54] — Forms 4562 – Bonus Election

Overview

Use Form Misc to enter information that transfers to Form 4562.

Electronic filing note: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

Bonus Depreciation Election

Use this section to enter bonus depreciation election information.

Property Class: Elect… Bonus Depr These elections can be made for the applicable property class lives that are listed on the asset input. When you make an election in the Bonus Depreciation Election dialog, Exactax marks the Elect out of 50’ Bonus Depreciation field. To make an election and mark the checkbox(es) for the election(s) you want to make.


204

Property 1

Property 2Property 1

Desc

ORSingle asset #

A

4797 Part III:

Property 2

Net gain or loss

Multiply by applicable % (xx.xxx)

Disposal (current year automatic dispositions)

Sale:

Enter the Unit # that the asset(s) belongs to. For other dispositions use SALE {43A}. For prior year installment sales use InstPY {43D}.

Method of disposition (Must be entered) *

Date disposed (Must be entered - Various is not allowed)

Property 1

Gross proceedsExpenses related to sale

Depreciation allowed (Override)Overall business use % (xx.xxx)

Type of property (Default=1245) †

(Enter one transaction per column)

Section 1255

Section 1250

Additional depreciation after 1975

Additional depreciation 1970 – 75

Soil, water and land clearing expensesMultiply by applicable % (xx.xxx)

Intangible drilling costs/development costs, etc.Applicable % of payments excluded from income

Section 1254

Installment Sale (current year):Mortgage and other debts buyer ASSUMED from seller.Total current year payments received: (excluding interest)Total ordinary income to recaptureRelated party name: Property 1

Address:

Taxpayer identification number:

Date of second sale: (mm/dd/yy)

Marketable security

Special condition code: ††Selling price of property sold by related party:Explanation:

6IDIS1 02 12/20/16

Page #

ALL SYSTEMS

City:

State:Zip:

All Transactions(Method and Date

Required)

Sale to related party (disallowed loss)

State Information:Does not qualify for installment treatment (MA, NH and PA)Qualifies for Proprietor Business Profits Tax (NH)Qualifies for capital gains deduction (IA)

Section 291 (Corporations only)

Asset

55A

55A2016

ExacTax, Inc.

Cost or basis (Automatic from asset detail)

Depr allowed (Automatic from asset detail)

(For method O entermethod & date only.For method R enter

method only.)

Section 1252

Proceeds reported on Form 1099

IncC

Specify Asset #sALL Assets OR

= Not reported on Form 4797= Trade or business property= Real property= Not used in trade or business= Cattle & horses

N12451250NOT UC

† Type ofproperty:

= Force 4797 Part I, long-term= Force 4797, Part II= Force 4797 Part III, long-term

123

†† Special condition: S = Sale or exchange of stock, I = Involuntary conversion, D = Death of original seller, N = Non-tax avoidence transaction

ORSingle asset #

F Rent DescInc2106 4835


Property 2Property 1

Property 2For prior year installment sales

use Form InstPY {43D}.

Prop

1

Prop

2Partnerships & S Corporations: Assets with Sec 179 must be entered separately as individual dispositions.

Property 2

Property 1

Property 2

Property 1

Property 2

Property 1

Property 2

Ownership % entered onForm RENT {31A}, ZIP 21,will be applied to all entrieson this form. Business use% entered on Form RENT,ZIP 22, is NOT applied toany entries on this form.

* Method of disposition:S = Sold or scrappedO = Out of service

(depreciation to date)R = Retired (nodepreciation this year)

Qualifies for capital gains deduction (ID)Sale of farm or sale of standing timber (VT)

A C

F 2106 4835Rent

Apply bus use % to gross proceeds and expenses (Only assets on {51} or {52}RLRaised LFD

= Raised cattle & horses= Livestock other than cattle & horses= Raised livestock not cattle & horses= Farmland held less than 10 years= Disposition of Section 126 payments


205

Form [55A] — Forms 4797 and 6252

Overview

Use Form Sale to enter asset sale information for Form 4797 (Regular and AMT) and current-year installment sales for Form 6252 (Regular and AMT). Use Form Misc to enter additional information needed to calculate Form 4797 and Form InstPY to enter prior year installment sale

information. Use Form K1Sale to enter sales of Section 179 property separately stated on Schedule K1.

Notes

Electronic filing: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

ExacTax uses the dates of acquisition and sale entered in this form to determine short- versus long-term transactions and the appropriate part of Form

4797, Form 6252, or Schedule D in which to report sales.

Form Sale is designed to enable you to enter asset sale information in one place and have ExacTax determine the proper category (or categories) in which to report each sale on the return. Because the information entered in Form Sale may be reported on either Form 4797 or Form 6252 there is not a one-to-one relationship between the sale form and either form. Therefore, clicking to Forms view from Form Sale may not always return you to the

correct form.

Overrides

To force ExacTax to print Forms 4797 and 6252 (for current-year sales), enter the asset information in Form Sale. Then override the asset information on the form if needed.

Important!

If you enter asset information directly in Form 4797 or Form 6252 and not in Form Sale, ExacTax does not print the form.

Asset information that you enter directly in the form does not transfer back to Form Sale. Do not enter asset information directly in the form. Enter sale information in this form instead.

The information in this section applies to all of the forms used to report the sale of assets.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business

unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, credits, and asset detail) for the activity.

Description

This description, which transfers automatically from the Form 51, is used as the unit description. This field is mandatory.

Treatment

The information in this field controls where the information appears on Form 4797 or Schedule D. The table that follows lists the treatment codes and shows where ExacTax places the information. You can either enter these codes directly. Note that the asset module automatically enters code 1, 2, or

3 based on the nature of the asset. You can override the code that ExacTax enters, if desired.

Force Code Reporting location of asset

1 Form 4797, Part I, Long-term

2 Form 4797, Part II


206

Force Code Reporting location of asset

3 Form 4797, Part III, Long-term

S Schedule D, Short-term installment sales

L Schedule D, Long-term installment sales

M Schedule D, 28% rate installment sales

State

If you are processing a state return, enter the two-character postal code for the state to which this unit belongs. This code is used by the various state

programs to help determine in-state and out-of-state amounts.

Notes

A postal code entry is required for proper state processing.

For New Hampshire returns, ExacTax uses the two-digit state postal code for the location of each business activity to process apportionment Forms BET-80 and DP-80.


Enter X to indicate that the asset sold qualifies as Section 1250 property. ExacTax calculates Unrecaptured Section 1250 gain, if applicable, and uses the amount in the tax calculation using maximum capital gains rates.

Unrecaptured Section 1250 gains from Forms 4797 and 6252 transfer to the Unrecaptured Section 1250 Gain Worksheet. This worksheet calculates

the total unrecaptured Section 1250 gains to be reported on Page 2 of Schedule D.

Sale of auto asset

For employee business expense activities using supplemental business expense (SBE) allocation, mark this field if the sale is related to an auto asset. ExacTax uses this information to include the sale of the auto asset for passive and at-risk calculations when supplemental business expense allocation

is present in Form 2106. For all other activities, this field is optional.

Gross proceeds…

Enter X in this field to indicate that this sale was reported on Form 1099-S or 1099-B. ExacTax enters the total of the gross sales from all sales

marked on line 1 of Form 4797.

Buyer’s part of real estate tax code/amount

This field is used to report the amount of real estate reported on Form 1099-S Box 5. This box reports real estate taxes charged to the buyer at the

settlement. Report this amount on the return by entering the appropriate code in the code field.

Code Condition Result

1 Real estate taxes already paid; reduce real estate taxes deducted

Will reduce Schedule A line 6, but not below zero

2 Real estate taxes already deducted; report as other income Will be reported as other income on 1040 line 21

Note: If there is no code entered in the code field, the amount field will not be reported anywhere on the return.

1099-S property in asset detail, do not report Source Data Entry data


207

When an X is entered in this field, all information on the form is ignored and not reported on the return. This field should be used when information was shared from the Source Data Entry utility for an asset in the asset module (for example, 1099-S entered in the Source Data Entry utility for rental

home entered in asset detail). The asset disposal should be entered in the asset tab.

Disposition due to casualty / theft

Enter X in this field if you want ExacTax to transfer the gain to Form 4684, Section B, line 33. Only mark this field when code 3 is entered in the Treatment field. Please refer to the instructions for the Treatment field in this form.

Postponed gain due to casualty / theft

Enter the amount of postponed gain due to casualty or theft. ExacTax will reduce the amount of any calculated gain by the amount entered in this field.


If this field is marked and the sale is a loss, ExacTax will enter an item to reverse the loss on Form 4797, line 2 or line 10 (depending on the holding period).

State use

If applicable, enter a state use code or select a code from the fieldview. The codes that are available in this field are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, this field will be disabled (shaded).

For Massachusetts, Pennsylvania, and New Hampshire returns, enter 1 in this field for a unit that does not qualify for installment treatment.

For New Hampshire returns, enter 2 in this field if the unit qualifies for Proprietorship Business Profits Tax.

For Iowa returns, enter 3 in this field if the unit is eligible for Qualifying Capital Gains Exclusion. This amount will transfer automatically to ExacTax/1040-IA Form IASale.

For California returns, code 4 is not applicable for this form.

For Idaho returns, enter 5 in this field if the unit qualifies for capital gains deduction. This amount will automatically transfer to ExacTax/1040-ID Form CG - Idaho Capital Gains Deduction.

For Vermont returns, enter 6 in this field if the unit qualifies for the 40-percent capital gains exclusion for farm or standing timber sales.

Delete on next year’s proforma

If you are completing this form for an installment sale, enter X to delete this form during next year’s proforma.

If "X", summary data entry…

Sale Information

Use this section to enter general sales information.

Date acquired / Date sold

Enter acquired and sold dates in MM/DD/YY format. Enter V to print the word Various for the date on the return; enter I to print Inherit.

Commissions and other expenses for sale

Include fixing-up expenses in this field for Form 6252. ExacTax adds amounts entered in this field to the basis for 4797 dispositions. This amount is

reported separately for installment sales.

Depreciation allowed or allowable


208

The depreciation amount in this field should include the amount of any Section 179 deduction. Any amount transferred from the Form 51 automatically includes Section 179.

Alternative minimum tax gain / loss adjustment

Enter the difference between the gain or loss reported for the regular tax and the gain or loss calculated for the AMT. ExacTax uses this amount to calculate the disposition of property reported on AMT versions of Forms 4797 and 6252.

Form 4797, Part III — Recapture

This section pertains to Form 4797, Part III. The numbers shown to the left of the items, such as 25(a), refer to the line numbers on Form 4797, Page 2. Do not use this section to enter assets that were sold at a loss.

If data is not entered in this section and the Section 1250 property field in this form is blank, ExacTax will default to treating a calculated gain as from the disposition of Section 1245 property.

Applicable percentage

When recapturing depreciation already taken, the applicable percentage is 100 percent unless you enter a value in these fields.

Form 6252 — Current Year Installment Sale

Use this section to enter information for current-year Form 6252 transactions for Parts I and II. Enter prior year installment sales in Form InstPY.

Current-Year Installment Sale

When using this section in the year of sale, enter applicable information in the following fields: Mortgage and other debts the buyer assumed and Total current year payments received. The Mortgage and other debts the buyer assumed field must include the amount of any indebtedness assumed. ExacTax prints Form 6252 if an amount is entered in this field, if it is the year of the sale, or if it is a related-party transaction and Part III is

required. Enter 0 (zero) in this field to have ExacTax print Form 6282 when there are not payments in the current year.

Form 6252 — Related Party Installment Sale Information


Date of second sale

ExacTax uses the date of the second sale to complete Form 6252, Part III, Related Party Installment Income. If the second disposition occurred less than two years before the first disposition, additional income may be recognized on Form 6252.

Special condition if applicable

Enter the applicable code if necessary. The available codes are listed in the table that follows and in the fieldview.

Code Condition

1 Sale or exchange of stock

2 Involuntary conversion

3 Death of original seller

4 Non-tax avoidance transaction


If the non-tax avoidance exception applies to the disposition, enter the explanation as required by Form 6252 in the attached field. If there is data in the field, ExacTax marks the appropriate checkbox on the form and prints the statement with the return.


209

Note: If you enter information in the attached field and enter code 1 or 2 in the previous field, ExacTax marks two exception codes on Form 6252.

Selling price of property sold by related party Enter an amount in this field if the related party resells the property within two years of the original sale.


210

Do NOT enter the same assets here and on Form 4562 Disposal {55A}. Assets entered here will create a new asset that will bedepreciated based on the old asset type. If no new asset number is entered in field provided, the next number available will be used. Do notmix different asset types, such as building and land, in the same column or incorrect treatment may result. When an exchange involves 2 ormore rentals given up, Form {43B} must be used. Ownership % entered on Rent {31A} will be applied to all entries. Business use %entered on Rent {31A} will not be applied to any entries.

A RentC F 2106 4835 Inc

Asset number for new asset (use 1000 & higher)Description of new asset received

- OR- Transfer new asset to:

Asset

EXCHANGES

Disposal (Like-Kind Exchange)

Cash paid *

FMV of other property given up (uncommon)

COMMON

Adjusted basis of other property given up (uncommon)

Liabilities (including mortgages) given up (uncommon)

Exchange expenses incurred:

FMV of (Not like-kind) property received (uncommon)

Related Party Exchange:Related party nameAddress

Taxpayer identification numberRelationship to you

Special condition codeYou disposed of property received this year

ALL SYSTEMS6IDIS2 01 11/01/16

Date property was identifiedDate like-kind property was received

Treat entire basis as a current yr acquistion (Election 1.168(I)-6(I))

CityStateZip

Related party sold property received this year

Liabilities assumed (uncommon)

Date disposed (Must be entered - No various) (mm/dd/yy)

Method of disposition

Cash received *

Like-Kind

AllTransactions(Date Required)

* (Do NOT enterboth CashReceivedand Paid)

1) Other Property Given UP (G + H + A – E)

Like-Kind Exchange Worksheet:

2) Net Liabilities (E – G – H –A)3) Unused exchange expense (I - 2 + C + E)4) Total amount given up (L – M + 1 + 3)5) Unlike property received (C + E – I)6) Liabilities assumed (F – G – H – A)7) Total unlike property received (5 + 6)8) Total amount realized (7 + K)

55B

55B2016

ExacTax, Inc.

How to handle new asset created in the exchange:

Delete (Default)

1)2)3)4)5)6)7)8)

(D)

(A)(B)

(C)

(H)

(E)(F)(G)

(I)

(K)(L)

(M)

Explanation

Type of property:

(D = Death of original seller, I = Involuntary conv, N = Non-tax avoidence transaction)

1 = Force to Form 4797, long-term, 2 = Force to Form 4797 - Part II1245 = Trade or business property, 1250 = Real property,

ORSingle asset #

AProp

1

C F Rent


UNCOMMON

Total FMV of like-kind property received:Adjusted basis of original asset (Force):Section 121 exclusion (uncommon):

9) Realized Gain (8 – 4)10) Recognized Gain (Smaller of 5 or 9)11) Basis of property received (Amount from line 4)

9)10)11)

Not less than zero

Not less than zeroNot less than zero

Not less than zero

(J)FMV of non sec 1245 like-kind property received (include in total K below)

Installment obligation received

(mm/dd/yy)(mm/dd/yy)

1065 /1120

Description of exchange

Inc2106 4835


211

Form [55B] — Like-Kind Exchanges

Overview

Use Form 8824 to enter like-kind exchange information for Form 8824.

Form 8824 — Like-Kind Exchanges — General Information

Use this section to enter general information about the like-kind exchange.

Notes

Electronic filing: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, credits, and asset detail) for the activity. The

following table lists the available forms and the folders in which they are located.

Folder Form description

Business Schedule C

Rental Schedule E, Page 1

Farm Schedule F

FarmRent Form 4835

K1 P/S Schedule K1 S-corp / Partnership

K1 E/T Schedule K1 Trust / Estate

Itemized Schedule A, 2106, 8829

Because there are multiple forms available in the Itemized Deduction folder, you must enter the form information. The available forms that you can enter in the Form field are listed in the table that follows and in the fieldview.

Form code Form description

A Schedule A

2106 Form 2106

H-SchA Home office worksheet - Schedule A

H-2106 Home office worksheet - 2106

H-Misc Home office worksheet - Misc

Misc Miscellaneous

M Miscellaneous

Notes

You can leave the Form and Unit# fields blank in forms located in the Per Sale folder. The only form code available for these forms is M.

Use Form 8824, located in the Per Sale folder, to enter information about a sale that is not connected with a business unit activity.

Property given up


212

This description, which transfers automatically from the Form 51, is used as the unit description and reported on the form.

State

If you are processing a state return, enter the two-character postal code for the state to which this unit belongs. This code is used by the various state programs to help determine in- and out-of-state amounts.

Note: A postal code entry is required for proper state processing.

Property received

Enter the description of the property received. This description transfers from the Form 51 and is reported on the form.

Sale of auto asset

For employee business expense activities using supplemental business expense (SBE) allocation, mark this field if the sale is related to an auto asset. ExacTax uses this information to include the sale of the auto asset for basis, passive, and at-risk calculations when supplemental business expense

allocation is present in Form 2106. For all other activities, this field is optional.

Section 121 exclusion

Enter the amount of Section 121 exclusion for the property given up. The amount will be reported as "Section 121 exclusion" and will adjust the Form 8824 realized gain reported on line 19. This amount may also adjust amounts reported on lines 20 and 25. Please refer to the Form 8824

instructions for additional information.

For California returns, code 4 is not applicable for this form.

If "X", summary data entry…

Part I — Information on the Exchange

The dates in this section transfer to Part I of Form 8824.

Date…

Enter the date in MM/DD/YY format. Or, enter VARIOUS or 999999 to have ExacTax print "VARIOUS" for the date on the return. The date will be reported on Form 8824, Part I. ExacTax produces a diagnostic if the period between the transfer and identification dates exceeds 45 days or if the

period between the transfer and received dates exceeds 180 days.

Note: If ExacTax is unable to calculate a holding period (because, for example, a date field is blank or VARIOUS is entered in the Date like-kind property given up was acquired or Date property transferred to other party fields), ExacTax defaults to a short-term treatment. The asset

treatment can be changed by selecting a treatment in the Treatment field in this form.

Part III — Computation of Gain and Basis

Use this section to enter gain and basis calculation information.

Computation of gain and basis

The information entered in these fields will be reported Form 8824, Part III and will be used to calculate the realized gain or loss, recognized gain,

and basis of like-kind property received.

Important! ExacTax does not automatically report the gain or loss recognized on non-like-kind property used in the exchange to the tax return. To report the gain or loss on the non-like-kind property used in the exchange, enter the exchange information for those items separately in the appropriate form based on the correct reporting of the exchange. The gain or loss recognized on non-like-kind exchange property is reported on Form

8824, line 14.


213

Fair market value of non-section 1245 property received

Enter the fair market value of Section 1245 property if the Section 1245 property received was given up in addition to the like-kind property. Section

1245 property is described in Internal Revenue Code Section 1245.

Adjusted basis of like-kind property given up, etc.

Enter the adjusted basis of like-kind property given up in the exchange. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded). Information on the adjusted basis of like-kind property given up in a pass-through entity

should be reported in the fields under the heading Adjusted basis of like-kind property from pass through entity.

Total potential ordinary income under recapture rules

Enter the total potential ordinary income under the recapture rules in this field. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded). Information on the total potential ordinary income under recapture rules is calculated based on entries in the Depreciation allowed or allowable excluding Section 179, Section 179 expense deduction passed through, and

Section 179 carryover.

Total potential unrecaptured section 1250 gain

Enter the total potential unrecaptured Section 1250 gain in this field. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded).

Adjusted basis of like-kind property from pass through…

For exchanges at a separate entity level that are passed through to the taxpayer on the K-1, enter the cost or other basis of the property given up, the depreciation allowed or allowable excluding Section 179, the Section 179 expense deduction passed through, and the Section 179 carryover

passthrough in the applicable fields. If the exchange is not in the K-1 P/S folder, these fields will be disabled (shaded).


Use this section to enter related-party exchanges. ExacTax uses this information to answer the related-party questions on Form 8824. This data proformas for two years after the year of sale, unless either party has resold the like-kind property.

Note: ExacTax transfers gains to the appropriate form based on the data entered.

During this tax year…

Select code 1 Yes or 2 No in response to the question.

Note: Information entered in Form 8824 proformas for two years after the year of the exchange, unless either party has resold the like-kind property.

In that case, the deferred gain or loss is reported on the return in the year of disposition.

Special condition if applicable

Enter the applicable code if necessary. The available codes are listed in the table that follows and in the fieldview.

Code Condition

1 Death of either party

2 Involuntary conversion

3 Non-tax avoidance transaction


If the no tax avoidance exception applies to the disposition, enter your explanation as required by Form 8824 in the attached field. If you enter data in this field, ExacTax marks the appropriate checkbox on the form and prints the statement.


214

Note: If you enter information in the attached field and enter code 1 or 2 in the previous field, ExacTax marks two exception codes on Form 8824.

Exchange is prior year like-kind exchange

Enter X in this field if the exchange occurred in a prior year. Form 8824 is required to be filed two years after the year of exchange when the exchange is between related parties. Marking this field will ensure that Form 8824 is reported correctly in subsequent years.


215

AProperty 1

DO NOT use this form for personal casualty losses. Use Form 4684P {75A} for personal casualty losses.Use Form 4684B {43E} for manual business losses.

(Election 1.168(I)-6(I))

No ReplacementInformation

No ReplacementNo Replacement

FMV of non like-kind property received

Casualty/Theft - Business/Income Producing Properties (automatic)

Sale

Enter the Unit number that the asset belongs to. Asset must be included on a depreciation form in the return.

Type of Casualty/Theft:(Must check ONE type only)

Date disposed (Must be entered - No Various)

Property 2 Property 3Property 1

Adjusted basis of original assetInsurance reimbursement received

Reimbursement to pay off mortgages or liensExpenses incurred obtaining reimbursement

(Enter one transaction per column)

5IDIS3 01 10/26/15

(continued)

Page #

ALL SYSTEMS

All Transactions(Type and Date

Required)

Casualty/theft event description

Asset

55C

55C2015

ExacTax, Inc.

Reimbursement entitled to but not receivedGrants, gifts and other payments

Replacement

No Replacement

Coverage if not filing an insurance claimDeductible if not filing an insurance claimFMV before casualty/theft

FMV after casualty/theft

Replacement Replacement

Acquired:

Recognized gain/loss


New asset number for replacement asset

Cost if purchased

ReplacementInformation

(Must checkCasualty/Theft-

Replacement aboveto make entries in this

section)

Disaster area loss to be taken in previous tax yr

Description of new asset received

Realized gain/loss

Postpone gain


Real Property(Section 1250 only)

Multiply by applicable % (xx.xxx)

Additional depreciation after 1975

Additional depreciation 1970 – 75Section 291 (Corporations only)

Acquired Method: Purchased, Related party, or Received as reimb

(use 1000 & higher)

Recognized gain/loss


Disaster area loss to be taken in previous tax yr

Elect to postpone gain

Property Type (B=Business, I=Income, E=Employee)

Property Type (B=Business, I=Income, E=Employee)

(Must check Casualty/Theft-No Replacement above to

make entries in this section)

Treat entire basis as current year acquisition(Election 1.168(I)-6(I)) (Election 1.168(I)-6(I))

Postpone gain codes: N = None, U = Up to replacement, E = Entire

AProperty 2

A ASSET #Inc #4835 #2106 #Property 3

Only one asset may be entered per column for assets that are part of the same event, enter the same event description.

FMV after Casualty/Theft

ASSET #Inc #4835 #2106 #Rent #C # F #

Rent #C # F # ASSET #Inc #4835 #2106 #

Rent #C # F #

Enter asset number from Form 50, 51, 52 or 72


216

Form [55C] — Business Casualty / Theft Loss

Overview

Use Form [55c] to complete Form 4684, Casualties and Thefts. Enter information for each casualty or theft occurrence.

If there are more than three assets lost in the casualty or theft, add a second unit of Form 4684B for the fourth and additional assets. Enter the same number in the Casualty/Theft number field for assets lost in the same casualty or theft.

ExacTax uses the dates of acquisition and sale entered in this form to identify short-term and long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sale.

Asset transfer

Data entered on the asset form automatically transfers to the appropriate field(s) on this form. You can overrule the transferred amount by entering the appropriate amount in any field.

Form 4684 — General Information

Use this section of the form to complete general information about the casualty or theft.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, and asset detail) to the activity. The following table lists the available forms and the folders in which they are located.

Folder Form description

Business Schedule C

Farm Schedule F

Farm Rental Form 4835

Itemized Deductions Schedule A

K1 1065, 1120S Schedule E, Page 2

Rent & Royalty Rent / Royalty

Business / Income Producing Properties

Use this section to complete Form 4684, Section B.

Description property…

Enter a description of each property. A property description is required for the calculation of the property’s corresponding fields in this form.


217

Asset number

The asset number will automatically transfer from the Form 51. The asset number will not transfer to the return, but will serve as a link to the data in the asset module.

Form 8829 home office number

The home office number will automatically transfer from the Form 51. The home office number will not transfer to the return, but will serve as a link to between Form 4684, Form 8829, and/or the Home Office Worksheet.

Property type

Enter 1 to indicate trade or business property, 2 to indicate income-producing property, or 3 to indicate employee property. This entry determines which column is used to report losses for the casualties or thefts in Part II of Section B.

Force holding period

ExacTax determines the short-term or long-term holding period based on the dates entered in the Date acquired and Date of casualty or theft fields. To change the holding period, enter 1 for short-term or 2 for long-term.

Note: If you enter Various in either date field, ExacTax defaults to short-term.

Gain reported on Form 4797, Page 2

Enter X if the gain on the casualty or theft was reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III, when there is a long-term gain from the casualty or theft of depreciable property. The casualty or theft also needs to be entered in Form Sale as well as in Form 4684B. Be sure to enter X in the Disposition was due to casualty/theft field in Form Sale to report the casualty or theft. If part or all of the gain must be recaptured, the capital portion of the gain will be reported on Form 4684, line 33, instead of Form 4684, line 34. The ordinary portion will be reported on Form 4797, line 13.


Enter X if you choose to postpone the entire gain on the casualty or theft, and either the replacement property was not acquired in the current year or only a portion of the replacement property was acquired in the current year. ExacTax proformas the asset information in Form 4684B to Form 4684PY in the following year.

Note: This field will be ignored if the Property acquired from related party field in the Replacement section of this form is marked.

Date acquired

Enter the date each property was acquired. Enter I or 999998 in the Date acquired field to designate an asset as inherited. ExacTax treats this as a long-term holding period.

Note: If you enter Various in the Date acquired field, ExacTax defaults to a short-term treatment. You may specify the holding period by using the Force holding period field.

Cost or adjusted basis

Enter the cost or adjusted basis before accumulated depreciation.


218


The accumulated depreciation amount in this field should include the amount of any section 179 deduction. This amount will be used by ExacTax to calculate the cost or adjusted basis of the property reported on Form 4684, Part I.

Total net reimbursement

Enter the insurance or other reimbursement expected or received that is related to each property. Include any coverage available even if a reimbursement claim is not filed.

FMV before / after loss

Enter the fair market value (FMV) of the properties before and after the loss.

Note: If the FMV after loss field is blank, ExacTax assumes that the casualty or theft totally destroyed this property. In that case, ExacTax calculates the loss without taking into account any decreases in fair market value. ExacTax allows an entry of zero in the FMV after loss field.

AMT gain / loss adjustment

Enter the alternative minimum tax gain or loss adjustment. ExacTax uses this amount when calculating the adjusted gain or loss reported on Form 6251.

Business / Income Producing Replacement Information

Use this section to enter replacement property acquired in the year of the casualty or theft.

Description replacement property

Enter a description of the replacement properties. ExacTax prints this information in a postponed gain statement attached to Form 4684.

Property acquired from related party

Enter X in this field if the replacement property was acquired from a related party. ExacTax will recognize the entire gain in full in the year of the casualty or theft.

Date acquired

Enter the date the replacement property was acquired. ExacTax prints this information in a postponed gain statement attached to Form 4684.

Note: If you enter Various in the Date acquired field, ExacTax defaults to a short-term treatment. You may specify the holding period by using the Force holding period field.

Cost of replacement property

Enter the cost of the replacement property. ExacTax prints this information in a postponed gain statement attached to Form 4684.


219

Form 4562 - Other Information

Depreciation Allowed


Form 4797 - Other InformationOthAsset

6POTHAST 01 10/25/16 PARTNERSHIP

Overflow # 2016

ExacTax, Inc. 59

59Section 179 expense deduction allowable in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 179 recomputed depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 280F depreciation allowable in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 280F recomputed depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4]

Section 179:

Total cost of Section 179 property placed in service this year (Force) . . . . . . . . . . . . . . . . . . . . . . .[6]

Portion of basis for Section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11]Maximum dollar limit (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[7][8]

to Use Loss %to Use Ownership %



.

.

.

.

.


.

.

.

.







[§ 5] Recapture of Section 179 expense deductionOriginal BasisTax Year Depreciation Allowed Section 179 Expenses Passed Through#





.

.

.

.

.


.

.

.

.







Original BasisTax Year Section 179 Expenses Passed Through#


[12]Amount#

[§ 12] Qualified zone property placed in service this year

[12][12]

[3][2][1]

Threshold cost before reduction in limitation (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bonus Depreciation Elections - see Form {54}

Business income limitation (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[13]


220

Form [59] - Other Sale and Depreciation Information

Overview

Use this form to enter other sale and depreciation information that ExacTax uses in preparing Forms 4797 and 4562.


Use this section to enter information that ExacTax requires to complete Form 4797, Part IV and Schedule K, Other items and amounts.

Section 179 expense deduction allowable in prior years / … / Section 280F recomputed depreciation

ExacTax uses the information you enter in these fields to complete Form 4797, Part IV.

ExacTax does not transfer the recapture income calculated on Form 4797 to other areas of the return. Enter the recapture income in the appropriate section of the return.

Recapture of section 179 expense deduction

Use the field to enter recapture information if the business use of the property, for which a 179 expense was previously passed through to partners, fell to 50 percent or less. ExacTax prints this information in the statements for Schedule K, line 20c and Schedule K-1, box 20, code M.


Use this section to enter information to complete Form 4562.

Section 179: Total cost of section 179 property placed in service this year (Force)

The asset module makes certain assumptions regarding which assets to include in the total cost of section 179 property acquired during the year. If the cost of qualified assets exceeds $2,010,000, ExacTax limits the total allowable expense for the year as required. Enter an amount to override the calculated amount.

Section 179: Threshold cost before reduction in limitation (Force)

ExacTax assumes the threshold cost of section 179 property is $200,000. Enter an amount to override the calculated amount.

Section 179: Maximum dollar limitation (Force)

ExacTax assumes the maximum dollar limitation used to calculate the section 179 expense deduction is $500,000. Enter an amount to override the calculated amount.

Section 179: Business income limitation (Force)

ExacTax defines business income for purposes of limiting the section 179 expense deduction as the following: ordinary income (Page 1, Ordinary business income [loss]) plus net other rental income (Schedule K, Other net rental income [loss]) plus guaranteed payments (Schedule K, Guaranteed payments) plus net royalty income (Schedule K, Royalties) plus net 1231 gains (Schedule K, Net section 1231 gain [loss]) plus net rental real estate income (Schedule K, Net rental real estate income [loss]) if you mark the Include net income (loss) in calculation for section 179 business income field in Form 4835, Form K1, and Form Rent. Enter an amount to force the business income limitation on Form 4562.


221

Section 179: Qualified zone property placed in service this year

Use the field to enter information for qualified zone property placed in service this year. ExacTax transfers this information to a field for Schedules K and K-1, line 12.

Bonus Depreciation Elections

ExacTax automatically marks the checkbox corresponding to the applicable property class if you used the asset module.


222

End of Year (EOY)Beginning of Year (BOY) Accountant's NotesDescription (29)#

[2][1][§ 1] Cash

Balance Sheets per Books - Assets

6PSCHL1 04 01/16/17 PARTNERSHIP

[§ 3] Trade notes and accounts receivable

Less allowance for bad debts . . . . . . . . . . . . . . . . . .

U.S. government obligations . . . . . . . . . . . . . . . . . . .

Tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . .[10][9][12][11]

Less accumulated depletion . . . . . . . . . . . . . . . . . .

[§ 19] Other investments

[§ 21] Buildings and other depreciable assets

[§ 24] Less accumulated depreciation

Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 36] Intangible assets

[§ 39] Less accumulated amortization

[§ 33] Land (net of any amortization)

[28][27]

( )( )

( )( ) ( )

( )

( )( )

Memo only Total Assets

1L Overflow # 60A2016

60AExacTax, Inc.

( ) [6][5] ( )

( ) [31][30] ( )

[§ 7] Inventories

[§ 13] Other current assets

[§ 17] Mortgage and real estate loans

[§ 42] Other assets

[4][3]

[8][7]

[14][13]

[18][17]

[20][19]

[22][21]

[34][33]

[37][36]

[43][42]

( ) ( )[25][24]

( ) ( )[40][39]

*

*See CAL section on Form {60B}

*Enter amount oncorresponding stateline if federal line withan * is NOT blank.

*

*

*

*

[§ 15] Loans to partners [16][15]

Ord IncUnit


223

Form [60A] - Balance Sheets per Books

Overview

Use this form to enter information for Form 1065, Schedule L.

Assets

Use this section to enter information for Schedule L assets.

Inventories

ExacTax automatically assigns inventory to the first unit of ordinary income activities and its associated cost of goods sold calculation. If you want ExacTax to assign inventory to a different unit, select the desired unit from the view in the Ordinary Income Unit column.

End of year assets

ExacTax uses the amounts in these fields to complete Schedule L. There are two fields for each end-of-year account balance. The fields in the End of Year Amounts from Asset Module column display the amounts transferred from the Form 51. Generally, ExacTax uses the amount from the Book column in the asset module; however, if the book column is blank, ExacTax uses the amount from the Tax column.

If you want ExacTax to use a different amount to complete Schedule L, enter an amount, including 0 (zero), in the corresponding field in the End of Year column.

Note: The data ExacTax retrieves from write-up applications appears in the End of Year column.

When you use the asset module, ExacTax transfers amounts as follows.

Asset Source of amount in first field

Buildings and other depreciable assets

The sum of the amounts in the Cost / Basis field of the asset module for all assets except those coded as Amortization, Units of Production, Land, or Memo in the Method field (except when you mark the Include memo asset on balance sheet checkbox in the Asset detail dialog > Other tab).

Less accumulated depreciation

The sum of the amounts in the Prior Depreciation field and the Current Depreciation field of the asset module for all assets except those coded as Amortization, Units of Production, or Land in the Method field.

Depletable assets The sum of the amounts in the Cost / Basis field of the asset module for all assets coded Units of Production in the Method field.

Less accumulated depletion

The sum of the amounts in the Prior Depreciation field and the Current Depreciation field of the asset module for all assets coded Units of Production in the Method field.

Land (net of any amortization)

The sum of the amounts in the Cost / Basis field less the amounts in the Prior Depreciation field and the Current Depreciation field of the asset module for all assets coded Land in the Method field.

Intangible assets The sum of the amounts in the Cost / Basis field of the asset module for all assets coded Amortization in the Method field.

Less accumulated amortization

The sum of the amounts in the Prior Depreciation field and the Current Depreciation field in the asset module for all assets coded Amortization in the Method field.


224

CA Schedule LCAL

End of Year (EOY)Beginning of Year (BOY)

[44]

[46]

[48]

[50]

[54]

[56]

[52]

Acct's NotesDescription (29)#

[§ 46] Mort., note, & bond pay in less than 1 yr

[§ 54] Mort., note, & bond pay in 1 yr or more

[§ 56] Other liabilities

[§ 50] All nonrecourse loans

[§ 48] Other current liabilities

[§ 44] Accounts payable

[§ 52] Loans from partners

2L Overflow # 60B2016Liabilities and Partners' Capital

Balance Sheets per Books

6PSCHL2 02 01/16/17 PARTNERSHIP

Memo only - Total Liabilities and Partners' Capital

Maximum amount for Schedule L rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*Partner's capital accounts (Force) . . . . . . . . . . . . . . .

60BExacTax, Inc.

Buildings and other depreciable assets . . . . . . . . . . . . . . .Less accumulated depreciation . . . . . . . . . . . . . . . . . . . .

Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Less accumulated depletion . . . . . . . . . . . . . . . . . . . . .

[1]

Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . .Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less accumulated amortization . . . . . . . . . . . . . . . . . . .

( )

( )

( )( )

( )

( )

( )

( )

( )

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Partners’ capital accounts (Force) . . . . . . . . . . . . . . . . . .Maximum amount for Schedule L rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ForceAccountant's Notes

Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . .Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

End of Year (EOY)Defaults to federal

Beginning of Year (BOY)

**

****

*

State entry is required iffederal correspondingline is NOT blank.

*

FEIN/SSNName of entity (36)#[§ 35] Amount of liquidation gains recognized to capitalize the LLC

Type* AmountCorp/SOS#

*1 = C Corporation 2 = S Corporation 3 = Partnership 4 = Limited partnership 5 = Sole proprietor 6 = Farmer

(Complete only if initial return)

(Beginning must match Form {61})[58]

[24][26][28]

[10][13][16][19][22][30]

[4][7]

[2]

[11][14][17][20][23][31]

[5][8]

[32]

[25][27][29]

[61]

[59]

[57]

[55]

[51]

[49]

[47]

[§ 60] Partners' capital account reconciliation (60)

[45]

[53]

Activity Activity

Type

Type

Type

Type

Type

Type

Type

Unit

Unit

Unit

Unit

Unit

Unit

Unit


225

Form [60A]- Balance Sheets per Books

Overview

Use this form to enter information for Form 1065, Schedule L.

Liabilities and Partners' Capital

ExacTax uses the information you enter in this section to complete Schedule L and Schedule K-1, Item K, Partner's share of liabilities.

Accounts payable / Mortgage, note, bond pay in less than 1 year / Other current liabilities / Loans from partners / Mortgage, note, bond pay in 1 year or more / Other liabilities

Use the fields to enter detail that ExacTax may require for the return. ExacTax uses the year-end amount and amounts you enter in the Liabilities section in Form K1 to calculate the partner's share of liabilities by activity on Schedule K-1 and the Partner Basis Worksheet.

By default, ExacTax treats each of these amounts as a Recourse Liability that is at risk. Use the Liability Classification column in the field to report the liability as a different classification.

ExacTax automatically assigns liabilities to the portfolio activity. If you want ExacTax to assign liabilities to a different activity, select the desired activity and unit from the views in the Activity Type and Activity Unit columns.

All nonrecourse loans

Use the field to enter detail that ExacTax requires for the return. ExacTax uses the year-end amount and amounts you enter in the Liabilities section in Form K1 to calculate the partner's share of liabilities by activity on Schedule K-1 and the Partner Basis Worksheet.

By default, ExacTax treats this amount as a Nonrecourse Liability that is at risk. Use the Liability Classification column in the field to report the liability as a different classification.

ExacTax automatically assigns liabilities to the portfolio activity. If you want ExacTax to assign liabilities to a different activity, select the desired activity and unit from the views in the Activity Type and Activity Unit columns.

Partners' capital accounts (Force)

ExacTax automatically transfers the amounts calculated on Schedule M-2 to Schedule L, Partners' capital accounts. Enter an amount, including 0 (zero), to use an amount different from the calculated amount.

Partners' capital account reconciliation

Use the field to enter information to reconcile the differences between the beginning and ending partners' capital account balances on Schedules L and M-2.

Maximum amount for Schedule L rounding

By default, ExacTax automatically rounds differences between assets and liabilities on Schedule L up to $10. However, ExacTax does not make a rounding adjustment if Schedule L is out of balance by more than $10. ExacTax automatically creates an adjustment to accounts payable or, if there is no balance in accounts payable, adjusts cash to correct an out-of-balance condition between assets and liabilities.


226

Enter an out-of-balance threshold, or enter 0 (zero) if you do not want ExacTax to make an automatic adjustment. ExacTax performs an out-of-balance adjustment up to the amount you specify.

California Balance Sheet per Books

Schedule L

Use this section to complete the Balance Sheet.

Other current assets

ExacTax automatically transfers amounts from federal Form L to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Mortgage and real estate loans


Other investments


Buildings and other depreciable assets / … / Less accumulated amortization

ExacTax automatically uses amounts entered in the Book column of the detailed asset data entry as the default amounts for Schedule L (or the State column if no book information is entered). The amounts are displayed directly on Page 5.

To change amounts for the California return, enter data in the applicable fields in the Beginning of Year or End of Year columns in this input form. Use the End of Year Amounts from Detailed Data Entry and Force columns for any adjustments.

Other assets

ExacTax automatically transfers amounts from federal Form L to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers..

Maximum amount for Schedule L rounding

Enter an out-of-balance threshold, or enter zero if you do not want any automatic adjustment to be made. ExacTax will perform an out-of-balance adjustment up to the amount specified. If this field is blank, ExacTax defaults to the amount entered in Maximum amount for Schedule L rounding entered in federal Form L.

If the difference between assets and liabilities plus partner’s capital is less than the out-of-balance threshold, ExacTax will automatically adjust cash or accounts payable to correct the out-of-balance condition. ExacTax will adjust accounts payable if the accounts payable end-of-year balance is greater than 0 (zero) and the cash end-of-year balance is 0 (zero). Otherwise, the adjustment will be made to cash. However, ExacTax will not perform any adjustment if Schedule L is out of balance by more than the out-of-balance threshold.


227

Schedule O

Use this section to complete Form 568, Page 5, Schedule O.

Amount of liquidation gains recognized to capitalize the LLC

Enter the recognized gains from liquidations used to capitalize the limited liability company in the field. If more than one item is entered in the field, ExacTax automatically prints "See Schedule" in the Name(s) of entity liquidated field on Form 568, Page 5, Schedule O and prints all of the detail entered in the field to a printable statement attached to the return. Schedule O is only completed if this is an initial return.


228

Description (29)

TypeCode

TypeCode

Analysis of Partners' Capital Accounts

[§ 21] Return deductionsnot on books

Description (45)

Propertydistributions

Capital account-beginning of year (An amount MUST be entered on the state M1M2, even if the amount is the same.). .

Maximum amount for Schedule M-1 rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The total of all partners’ beginning capital on Form {10A} must equal zip 35.

M1M2 Schedule M-1 AND M-2

6PM1M2 01 10/25/16 PARTNERSHIP

Net income per books* (Overrides) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit adjustment not on book (Force)* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depreciation - bookBook/Tax Information

Accountant's calculated amounts

Force

Section 179 - book (Defaults to calculated tax Section 179) . . . . . . . . . . . . . . . . . . . . . [29]Amortization - book (Defaults to calculated tax amortization)* . . . . . . . . . . . . . . . . . . . [31]Start-up or organization costs - book (If different from tax deduction) * . . . . . . . . . . . [33]

To enter transfers of partners' interest use input Form {14}

Capital contributions: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cash distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 61

ExacTax, Inc. 61

[48]Other

decreases

Description (50)#

[48]


# Fair Market Value

[47]

[47]

Description (29) Adjusted Basis [47] Ptr AllocPtr Alloc

[44] [45]

[43]Other

increases

Description (50)#

[43]


[39] [40][41] [42]

PtrAlloc

[37]

[23]

Amount [21] Ptr Alloc#

[21]

[6]Book-tax depreciation difference* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[7]Book-tax amortization difference* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Book-tax 4797 gain/loss difference* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible conservation expenses* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible meals and entertainment* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[2]

Force

[§ 20] Book income notincluded on tax return

[20]

Description (45) Amount [20] Ptr Alloc

[18]

Description (45) Amount [5] Ptr Alloc#

[4]

Description (45) Amount [4] Ptr Alloc#Taxable income not

on books*

Book expenses notdeducted on tax return*

[3]

PtrAlloc

[4]

[5]

[5]Ptr Alloc

*Amounts MUST also be entered for State.

***

**Amount MUST also be entered for State.

Accountant's calculatedamounts

#

I = Include (Default), X = Exclude

I = Include (Default), X = Exclude

Reconciliation of Income (Loss) per Books* If Schedule M-3 is printing, enter all book/tax adjustments and related partner allocations in on input Forms 62A-62C

Book-tax start-up or organization costs difference * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[22]

4797 Gain/Loss - Book (Defaults to calculated tax 4797 gain/loss) . . . . . . . . . . . . . . . . * [35]

Ptr Alloc

Ptr Alloc

#[46]

Ptr AllocNet Precont. GainFair Market Value Ptr Alloc Cash Received Ptr AllocAdjusted Basis Ptr Alloc[§ 46] Distributions subject to section 737

[8][9]

[10][11]

[19]

[§ 4]

[§ 5]

[§ 43]

[§ 47]

[§ 48]

Deferred section 108 (i) income difference (Force)*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[12] [13]Deferred section 108 (i) original issue discount difference (Force)*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[14] [15]

[20]

[20]

[21]

[47]

[47]

[47]

[47]

[27]*[25]*Other than cost of goods sold (If different from tax depreciation) . . . . . . . . . . . . . . . .

Cost of goods sold (If different from tax depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . .

Form10A

Lease inclusion (Force)*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[16] [17]


229

Form [61] - Schedules M-1 and M-2

Overview

Use this form to enter information to prepare Schedules M-1 and M-2. Use Forms M3, M3-2, M3-3, and 8916A to enter information to prepare Schedule M-3 and Form 8916-A.

Reconciliation of Income (Loss) per Books

ExacTax automatically transfers the following to Schedule M-1.

Differences between book and tax expenses for depreciation

Differences between book and tax expenses for amortization

Differences between book and tax expenses for start-up expenses and organization costs

Differences between book and tax Form 4797 gain (loss)

The nondeductible portion of meals and entertainment expenses from Forms 4835-2, F-2, Inc, and Rent

Guaranteed payments from Forms 4835-2, F-2, K-2, Inc, OGWell, and Rent

Pensions and IRAs considered guaranteed payments to partners

Tax-exempt interest

Credit adjustment not on books for Forms 5884, 6478, 6765, 8820, 8826, 8844, 8845, 8846, 8864, 8881, 8882, 8932, and 8941

The nondeductible portion of conservation expenses from Forms 4835-2 and F-2

Differences between book and tax section 108(i) deferred cancellation of debt income

Differences between book and tax section 108(i) deferred original issue discount deductions

ExacTax uses the calculated amount of Schedule M-1, Net income (loss) per books for Schedule M-2, Net income (loss) per books.

Net income per books - Amount from Accounting Product

ExacTax retrieves net income per books for this field from any general ledger package that is bridged, imported, or that interfaces with ExacTax. This amount is not used in the return and is listed for informational purposes only. To use this amount on Schedule M-1, enter the amount displayed here in the Net income per books - Force field.

Net income per books - Force

The behavior of Schedule M-1 differs depending on whether you enter data in this field.

If you enter data in this field, ExacTax uses this number on Schedule M-1, line 1 and then adds and deducts the adjustments to arrive at line 9, Income (loss).

If you leave this field blank, ExacTax begins with Schedule M-1, line 9, Income (loss) and then adds and deducts the adjustment items backward to arrive at line 1, Net income (loss) per books.


230

Book expenses not deducted on tax return

Use the field to enter information for Schedule M-1, Expenses recorded on books this year not included on Schedule K, lines 1 through 13d and 16l. By default, these items also appear on Schedule K, Nondeductible expenses. In the field, use code X to prevent items from appearing on Schedule K.

Deferred section 108(i) income difference (Force)

ExacTax automatically calculates the book-tax difference for IRC section 108(i) income as the amount entered in the Deferred income included in current year income field in Forms CODI and K1CODI. ExacTax assumes that the amount of deferred section 108(i) income was recognized on the books in the initial year the election was made. Enter an amount, including 0 (zero), to override the calculated adjustment that appears on Schedule M-1.

Note: Due to the complexities of Schedule M-3, ExacTax cannot automatically make an M-3 reconciling adjustment to the book-tax difference for IRC section 108(i) income. You will need to enter the book income and temporary and permanent differences in Form M3-2.

Deferred section 108(i) original issue discount difference (Force)

ExacTax automatically calculates the book-tax difference for IRC section 108(i) original issue discount deductions as the amount entered in the Deferred OID deductions allowable as a deduction in current year field in Forms CODI and K1CODI. ExacTax assumes that the amount of deferred section 108(i) original issue discount deductions was recognized on the books in the initial year the election was made. Enter an amount, including 0 (zero), to override the calculated adjustment that appears on Schedule M-1.

Note: Due to the complexities of Schedule M-3, ExacTax cannot automatically make an M-3 reconciling adjustment to the book-tax difference for IRC section 108(i) original issue discount deductions. You will need to enter the book expense and temporary and permanent differences in Form M3-3.

Tax credit adjustment not on books (Force)

ExacTax automatically calculates the tax credit adjustment not on books, which represents the difference between tax and book income when tax credits affect income on the return. The credits from Forms 5884, 6765, 8820, 8826, 8844, 8845, 8846, 8881, 8882, 8932, and 8941 reduce salaries and wages / labor hired, taxes and licenses, employee benefit programs, and other deductions / expenses. The credits from Forms 6478 and 8864 increase other income. These adjustments generally are not made when computing book income. Enter an amount, including 0 (zero), to override the calculated amount of tax credit adjustment that appears on Schedule M-1 and Schedule K, Nondeductible expenses.

Note: To override the calculated amount of tax credit adjustment on Schedule M-3, Other expense/deduction items with differences, use the Tax credit adjustment not on books (Force) field in Form M3-2.

Book income not included on tax return

Use the field to enter information for Schedule M-1, Income recorded on books this year not included on Schedule K, lines 1 through 11. By default, these items also appear on Schedule K, Other tax-exempt income. In the field, use code X to prevent items from appearing on Schedule K.

Maximum amount for Schedule M-1 rounding

If you enter an amount in the Net income per books (Force) field, ExacTax automatically rounds differences between Schedule M-1, Income (loss) and Form 1065, Page 5, Analysis of Income up to $10. However, ExacTax does not make a rounding adjustment if Schedule M-1 is out of balance by more than $10.


231

Enter an out-of-balance threshold, or enter 0 (zero) if you do not want ExacTax to make an automatic adjustment. ExacTax performs an out-of-balance adjustment up to the amount you specify. Click the Ptr Alloc button to allocate the rounding adjustment to partners using a ratio other than the profit-sharing percentages.

Depreciation - book

These fields contain the book depreciation amounts. ExacTax uses these fields to generate a Schedule M-1 or Schedule M-3 reconciling item for the difference between the book depreciation and the total tax depreciation.

The Depreciation - book fields in the first column display the amount of book depreciation transferred from the Form 51. To have ExacTax use an amount for book depreciation that is different from the amounts displayed in the first column, enter an amount, including 0 (zero), in the second Depreciation - book column. If both book depreciation columns are blank or if book depreciation equals tax depreciation, ExacTax does not generate a Schedule M-1 or Schedule M-3 depreciation adjustment.

If you do not enter tax depreciation, ExacTax transfers the book depreciation amount to Page 1, Depreciation and does not make a reconciling adjustment. Likewise, if you enter a value for tax depreciation but leave book depreciation blank, ExacTax assumes that they are the same and does not make an adjustment. ExacTax makes automatic adjustments only when the values you enter for tax depreciation and book depreciation are different.

Section 179 - book

These fields contain the book section 179 expense amounts. ExacTax uses these fields to generate a Schedule M-1 or Schedule M-3 reconciling item for the difference between the book section 179 expense and the total tax section 179 expense.

The first Section 179 - book field displays the amount of book section 179 expense transferred from the Form 51. To have ExacTax use an amount for book section 179 expense that is different from the displayed amount, enter an amount, including 0 (zero), in the second Section 179 - book field. If both Section 179 - book fields are blank or if book section 179 expense equals tax section 179 expense, ExacTax does not generate a Schedule M-1 or Schedule M-3 section 179 adjustment.

Amortization - book

These fields contain the book amortization amounts. ExacTax uses these fields to generate a Schedule M-1 or Schedule M-3 reconciling item for the difference between the book amortization and the total tax amortization.

The first Amortization - book field displays the amount of book amortization transferred from the Form 51. To have ExacTax use an amount for book amortization that is different from the displayed amount, enter an amount, including 0 (zero), in the second Amortization - book field. If both Amortization - book fields are blank or if book amortization equals tax amortization, ExacTax does not generate a Schedule M-1 or Schedule M-3 amortization adjustment.

Start-up or organization costs - book

These fields contain the book start-up expense and organization cost amounts. ExacTax uses these fields to generate a Schedule M-1 reconciling item for the difference between the book deduction and the total tax deduction.

The first Start-up or organization costs - book field displays the amount of the book deduction transferred from the Form 51. To have ExacTax use an amount for the book deduction that is different from the displayed amount, enter an amount, including 0 (zero), in the second Start-up or organization costs - book field. If both book deduction fields are blank or if the book deduction equals the tax deduction, ExacTax does not generate a Schedule M-1 adjustment.


232

Note: Due to the complexities of Schedule M-3, ExacTax cannot automatically make an M-3 reconciling adjustment to the book-tax difference for the start-up expense and organization cost deduction. You will need to enter the book expense and temporary and permanent differences in Form M3-3.

4797 gain or loss - book

These fields contain the book gain or loss amounts on the disposal of assets. ExacTax uses these fields to generate a Schedule M-1 or Schedule M-3 reconciling item for the difference between the book gain or loss and the tax gain or loss reported on Form 4797.

The first 4797 gain or loss - book field displays the amount of book gain or loss transferred from the Form 51. To have ExacTax use an amount for book gain or loss that is different from the displayed amount, enter an amount, including 0 (zero), in the second 4797 gain or loss - book field. If both 4797 gain or loss - book fields are blank, or if book 4797 gain or loss equals tax 4797 gain or loss, ExacTax does not generate a Schedule M-1 or Schedule M-3 adjustment.

Notes

ExacTax separately reports the gain or loss on the disposal of section 179 assets to the partners and does not include the gain or loss on Form 1065, Schedule K. However, ExacTax assumes the gain or loss on disposal of section 179 assets is included in book income. Therefore, ExacTax generates a Schedule M-1 or Schedule M-3 reconciling amount for the entire amount of book gain or loss on the disposal of assets with a section 179 expense deduction.

If you have a gain or loss on assets that were disposed of in a casualty or theft or were traded in a like-kind exchange, and the gain or loss is included in your book income, enter the total book gain or loss in the Force field to prevent ExacTax from generating a Schedule M-1 or Schedule M-3 adjustment.


Capital account - beginning of year

Enter the total beginning of year capital for all partners. Click the Ptr Alloc button to allocate this amount to each partner using the absolute dollar scheme.

Distributions subject to section 737

Use the field to enter the description, adjusted basis, fair market value, cash received, and net precontribution gain for distributions subject to IRC section 737. The adjusted basis and fair market value entered here are added to property distributions entered in the Property distributions field and certain transfers of capital entered in the Transfers of Capital window in Partner Data Entry and are reported on Schedule K, line 19b; Schedule M-2, line 6b; and Schedule K-1, Partner's capital account analysis. The fair market value, cash received, and net precontribution gain from this field are reported in a statement on Schedule K-1, box 19, code B.

Property distributions

Use the field to enter the description, adjusted basis, and fair market value for property distributions other than distributions subject to IRC section 737. Property distributions entered here are added to distributions entered in the Distributions subject to section 737 field and certain transfers of capital entered in the Transfers of Capital window in Partner Data Entry and are reported on Schedule K, line 19b; Schedule M-2, line 6b; and Schedule K-1, Partner's capital account analysis.


233

M3 Schedule M-3 - Financial Information

6PM3 01 10/25/16 PARTNERSHIP

2016

ExacTax, Inc. 62A

62A

Name of Entity#[§ 25] Net income from nonincludible foreign entities

General Information

Total Assets Total Liabilities

Financial Information

Suppress Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]

Amount

Adjusted total assets (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [5]

Calculate M-1 in lieu of M-3 Parts II and III (Only when ending total assets are less than $50 million) . . . . . . . . . . . . . . . . . . . . . . . . . [3]

Total receipts (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [6]

Reportable entity partner #1:Total receipts (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[7]Identifying number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . [8][9]Maximum percentage owned or deemed owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reportable entity partner #2:[10]Identifying number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name . . . . . . . . . . . . . . . . . . . . . . . . . . .[11][12]Maximum percentage owned or deemed owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Partnership filed SEC Form 10-K for the income statement period . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Partnership prepared a certified audited non-tax-basis income statement for the period . . . . . . . . . . . . .

[13]

Partnership prepared a non-tax-basis income statement for the period . . . . . . . . . . . . . . . . . . . . . . . . . . .

[14]

Income statement period (If different from tax year beginning and ending on Screen 1065) . . . . . .(mm/dd/yy) [17][16] toPartnership's income statement restated for the current period [§ 18]

Partnership's income statement restated in any of the five periods preceding the current period [§ 19]

Net Income (Loss) ReconciliationWorldwide consolidated:

Total assets (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[21]

Total liabilities (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = GAAP, 2 = IFRS, 3 = 704(b), 4 = Tax-basis)

[22]

Other (specify) . . . . . . . . . . . . . . . . . [24]

EIN

[§ 26] Net loss from nonincludible foreign entities (Enter loss as a positive amount)

[§ 27] Net income from nonincludible US entities

[§ 28] Net loss from nonincludible US entities (Enter loss as a positive amount)

[§ 29] Net income (loss) of other foreign disregarded entities

[§ 30] Net income (loss) of other US disregarded entities

[§ 31] Adjustment to eliminations of transactions - includible and nonincludible entities

[§ 32] Adjustments to reconcile income statement period to tax year

Type of Elimination# Name of EnitiyAmount

Description# Amount

[§ 33] Other adjustments to reconcile to net income (loss)

Maximum amount for Schedule M-3 rounding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [35][34]

PtrAlloc

(1 = Yes, 2 = No)

(1 = Yes, 2 = No)

(1 = Yes, 2 = No)

- -

- -

[15]

Calculate adjustment to balance Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4]

[23]


234

Form [62A] - Schedule M-3 - Financial Information

Overview

Use this form to enter information necessary to complete Schedule M-3, Page 1. Use Form M1M2 to enter information necessary to complete Schedule M-1.

General Information

Use this section to enter general information for Schedule M-3.

Suppress Schedule M-3

Enter X to suppress printing of Schedule M-3. ExacTax automatically completes Schedule M-3 if the schedule is required to be filed or if any data is entered in Form M3, M3-2, or M3-3. If Schedule M-3 is suppressed, ExacTax completes Schedule M-1.

Note: Schedule M-3 is required to be filed if any of the following conditions are met.

Total Schedule L end-of-year assets are greater than or equal to $10 million

End-of-year adjusted total assets are greater than or equal to $10 million

Total receipts are greater than or equal to $35 million

The partnership has at least one reportable entity partner (a partner who owns or is deemed to own an interest of 50 percent or more in the partnership's profit, loss, or capital on any day during the tax year of the partnership and who was required to complete Schedule M-3 on their most recently filed U.S. income tax return)

Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III

Enter a 1 to complete the Schedule M-1 instead of Schedule M-3, Parts II and III when filing Schedule M-3 and total assets at the end of the tax year are less than $50 million. Enter a 2 to complete the Schedule M-3 in its entirety. Entry in this field is ignored and the Schedule M-3 will complete in its entirety if assets are $50 million or more.

Notes

To override the global selection in the Other Return Options dialog on a client-by-client basis, select Yes or No in the Complete Schedule M-1 in lieu of Schedule M-3, Parts II and III field in Form M3.

Calculate adjustment to balance Schedule M-3

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary or permanent differences for a number of items on Schedule M-3 (indicated with an asterisk before the description in Forms M3-2, M3-3, and 8916A). However, due to the complexities of Schedule M-3, ExacTax does not automatically transfer all items of income, expense, gain, or loss to Schedule M-3. Additional data entry may be necessary in Forms M3-2, M3-3, and/or 8916A to balance Schedule M-3 with Form 1065.

Enter X to have ExacTax balance Schedule M-3. When you mark this field, ExacTax calculates the difference between the Net income (loss) on Form 1065, Page 5, Analysis of Income and Schedule M-3, Part II, line 26(d) and enters the amount on Schedule M-3, Part II, line 25, columns (a) and (d). Also, ExacTax calculates the difference between the cost of goods sold on Form 1125-A, line 8 and Form 8916-A, Part I, line 8(d) and enters the amount on Form 8916-A, Part I, line 7, columns (a) and (d).


235

Notes

The adjustment to balance Schedule M-3 balances only the net income (loss) per tax return to Form 1065. Net income (loss) per books may not agree with the partnership books, which could cause an out-of-balance condition on Form 1065, Schedule L. In this case, additional adjustments may be necessary on Forms M3-2, M3-3, and/or 8916A to report any additional book to tax differences.

ExacTax will make the adjustment to balance Schedule M-3 and Form 8916-A only when the Other items with no differences fields in Forms M3-2 and 8916A are blank.

Adjusted total assets (Force)

Adjusted total assets are defined as total assets at the end of the tax year plus capital distributions, losses, and adjustments that reduce total capital. ExacTax automatically calculates adjusted total assets on the Adjusted Total Assets Worksheet. Enter an amount, including 0 (zero), to use an amount different from the calculated amount.

Total receipts (Force)

Total receipts are defined as the sum of gross receipts or sales; all other income; income reported on Schedule K, lines 3a, 5, 6a, and 7; income or net gain reported on Schedule K, lines 8, 9a, 10, and 11; and income or net gain reported on Form 8825, lines 2, 19, and 20a. ExacTax automatically calculates total receipts. Enter an amount, including 0 (zero), to use an amount different from the calculated amount.

Reportable entity partner

Enter the identifying number, name, and maximum percentage owned or deemed owned for each reportable entity partner, or select no more than two reportable entity partners in the Federal tab in the Partner Information window in Partner Data Entry. A reportable entity partner owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss on any day during the tax year of the partnership and was required to complete Schedule M-3 on its most recently filed U.S. income tax return.

For any tax year in which the partnership has more than two reportable entity partners, the partnership must provide all of the information for the two reportable entity partners having the largest maximum percentage of actual or deemed ownership for the tax year of the partnership.

Note: If the reportable entity partners are entered here and in the Partner Information window, the information entered here overrides the partners designated in the Partner Information window.

Financial Information

Use this section to enter financial information for Schedule M-3, Part I.

Partnership filed SEC Form 10-K for the income statement period / Partnership prepared a certified audited non-tax-basis income statement for the period / Partnership prepared a non-tax-basis income statement for the period

Enter 1 for Yes or 2 for No. ExacTax uses your answer to complete the question on Schedule M-3, Part I.

Note: If the Schedule M-3, Part I, questions 1a, 1b, and 1c are all answered No, ExacTax skips Part I, lines 2 through 3b.

Income statement period


236

Enter the income statement period in these fields. If you leave these fields blank, ExacTax defaults to the tax year beginning and ending dates entered in Form 1065.

Note: If the Schedule M-3, Part I, questions 1a, 1b, and 1c are all answered No, ExacTax skips Part I, lines 2 through 3b.

Partnership's income statement restated for the current period / in any of the five periods preceding the current period

Use the field to enter an explanation if the partnership's income statement was restated. ExacTax marks Yes to the question on Schedule M-3, Part I.

Note: If Schedule M-3, Part I, questions 1a, 1b, and 1c are all answered No, ExacTax skips Part I, lines 2 through 3b.

Net Income (Loss) Reconciliation

Use the fields in this section to enter net income or loss amounts to reconcile the consolidated financial statement net income (loss) to the net income (loss) for the partnership.

Worldwide consolidated: Total assets (Force)

ExacTax calculates worldwide consolidated total assets for Schedule M-3, Page 1, line 12a as the total end-of-year assets on Form 1065, Schedule L, plus the total assets of all entities included on Schedule M-3, Part I, lines 5a through 6b. Enter an amount, including 0 (zero), to override the calculated amount.

Worldwide consolidated: Total liabilities (Force)

ExacTax calculates worldwide consolidated total liabilities for Schedule M-3, Page 1, line 12a as the total end-of-year liabilities on Form 1065, Schedule L, plus the total liabilities of all entities included on Schedule M-3, Part I, lines 5a through 6b. Enter an amount, including 0 (zero), to override the calculated amount.

Worldwide consolidated: Accounting standard

Enter 1 to select GAAP, 2 to select IFRS, 3 to select 704(b), 4 to select Tax-basis, or enter the other accounting standard in the Other (specify) field. If an accounting standard is not entered, ExacTax defaults to GAAP as the accounting standard.

Other (specify)

Enter the other accounting standard method used to determine worldwide consolidated net income (loss) from the financial statement indicated on Schedule M-3, Part I, line 1.

Note: ExacTax includes only the first 20 characters of the other accounting standard in the electronic file for Schedule M-3, Page 1, line 4b(5). For details about other electronic filing limitations, see Field size limitations for 1065 electronic filing.

Net income from nonincludible foreign entities

Use the field to enter the name, employer identification number, net income, total assets, and total liabilities from nonincludible foreign entities. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net loss from nonincludible foreign entities field and includes the total on Schedule M-3, Page 1, lines 12a and 12b.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part I, line 12b even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or Worldwide consolidated: Total liabilities (Force) field.


237

Net loss from nonincludible foreign entities

Use the field to enter the name, employer identification number, net loss, total assets, and total liabilities from nonincludible foreign entities. Enter losses as positive amounts. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net income from nonincludible foreign entities field and includes the total on Schedule M-3, Page 1, lines 12a and 12b.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part 1, line 12b even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or Worldwide consolidated: Total liabilities (Force) field.

Net income from nonincludible US entities

Use the field to enter the name, employer identification number, net income, total assets, and total liabilities from nonincludible U.S. entities. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net loss from nonincludible US entities field and includes the total on Schedule M-3, Page 1, lines 12a and 12c.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part 1, line 12c even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or Worldwide consolidated: Total liabilities (Force) field.

Net loss from nonincludible US entities

Use the field to enter the name, employer identification number, net loss, total assets, and total liabilities from nonincludible U.S. entities. Enter losses as positive amounts. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net income from nonincludible US entities field and includes the total on Schedule M-3, Page 1, lines 12a and 12c.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part I, line 12c even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or Worldwide consolidated: Total liabilities (Force) field.

Net income (loss) of other foreign disregarded entities

Use the field to enter the name, employer identification number, net income (loss), total assets, and total liabilities of other foreign disregarded entities. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net income (loss) of other US disregarded entities field and includes the total on Schedule M-3, Page 1, line 12d.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part I, line 12d even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or the Worldwide consolidated: Total liabilities (Force) field.

Net income (loss) of other US disregarded entities

Use the field to enter the name, employer identification number, net income (loss), total assets, and total liabilities of other U.S. disregarded entities. ExacTax combines total assets and liabilities entered in this field with the amounts entered in the Net income (loss) of other foreign disregarded entities field and includes the total on Schedule M-3, Page 1, line 12d.

Note: ExacTax transfers total assets and liabilities entered in the field to Schedule M-3, Part I, line 12d even if you enter an amount in the Worldwide consolidated: Total assets (Force) field or the Worldwide consolidated: Total liabilities (Force) field.



238

By default, ExacTax automatically rounds differences between Form 1065, Page 5, Analysis of Net Income (Loss) and Schedule M-3, Page 2, line 26(d) up to $10. However, ExacTax does not make a rounding adjustment if the difference is greater than $10.

Enter an out-of-balance threshold, or enter 0 (zero) if you do not want ExacTax to make an automatic adjustment. ExacTax performs an out-of-balance adjustment up to the amount you specify. Click the Ptr Alloc button to allocate the rounding adjustment to partners using a ratio other than the profit-sharing percentages.


239

Schedule M-3 - Income (Loss) ItemsM3-2 (2016)

Income (Loss) Items

Book-Tax Differences

Difference

Subpart F, QEF, & similar income incl

Worthless stock lossesOther gain (loss) on disposition of assets

* Enter an amount, including zero, to force the calculated amount

Schedule M‐3 book‐tax differences transferred to Schedule K:Other tax‐exempt incomeNondeductible expensesTax credit adjustment not on books (Force)Nondeductible conservation expenses

Gross foreign div not previously taxed

Permanent

Inc (loss) ‐ equity method US corp

Income (Loss) perIncome Statement

Inc (loss) ‐ equity method foreign corp

US dividendsIncome (loss) from US partnershipsInc (loss) from foreign partnershipsInc (loss) from other pass‐through entItems relating to reportable transInterest income (Enter on Screen 8916A)

Total accrual to cash adjustmentHedging transactionsMark‐to‐market income (loss)Cost of goods sold (Enter on Screen 8916A)

Sale versus leaseSection 481(a) adjustmentsUnearned/deferred revenueInc recog from long‐term contractsOriginal issue discount & imputed intInc stmt gain (loss) ‐ sale/disp of assets

Net gain (loss) on Form 4797, line 17Gross capital losses from Schedule D

Abandonment losses

Other income (loss) items with diffOther items with no differences

Gross capital gains from Schedule D

Gross foreign dist previously taxed

TemporaryDifference


****

*

*

1 2 34 5

6 7 89 10

11 1213 14

15 16 1718 19

20 21 2223 24

25 26 2728 29

30 31 3233 34

35 36 3738 39

40 41 4243 44

45 46 4748 49

50 51

52 53 54 55 56

57 58 59 60 61

62 63 64 65 66

67 68

69 70 71 72 73

74 75 76 77

78 79 80 81 82

83 84 85 86 87

88 89 90 91 92

93 94 95 96 97

98 99 100 101

102 103 104 105

106 107 108 109

110 111 112 113

114115 116 117

118 119 120 121

122 123 124

125

126

127

128 129

130

M3-2 62B



240

Form [62B] - Schedule M-3 - Income (Loss) Items

Overview

Use this form to enter information necessary to complete Schedule M-3, Part II, Reconciliation of Net Income (Loss) per Income Statement of Partnership with Income (Loss) per Return.

Income (Loss) Items

Use this section to enter income (loss) items from the partnership's income statement and the temporary and permanent difference for each item.

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary or permanent difference for the following items on Schedule M-3, Part II.

Income (loss) from U.S. partnerships

Income (loss) from foreign partnerships

Income (loss) from other passthrough entities

Income statement gain (loss) on sale or disposition of assets other than inventory and passthrough entities

Gross capital gains from Schedule D, excluding amounts from passthrough entities

Gross capital losses from Schedule D, excluding amounts from passthrough entities

Net gain (loss) reported on Form 4797, line 17

Other gain (loss) on disposition of assets other than inventory

Income (Loss) per Income Statement / Temporary Difference / Permanent Difference

Report in column (a) the amount of net income (loss) included on Schedule M-3, Page 1, line 11 for each item on Schedule M-3, Part II. Enter these amounts in the Income (Loss) per Income Statement column. For any item of income or loss where there is a difference between the income statement and the tax return amount, enter the temporary portion in the Temporary Difference column and the permanent portion in the Permanent Difference column. ExacTax completes column (d) based on your entry in these fields.

Fields with an asterisk before the description default to ExacTax-calculated amounts based on current return information. To override the calculated amount, enter an amount, including 0 (zero), in the appropriate field.

Income (loss) from US partnerships / Inc (loss) from foreign partnerships / Inc (loss) from other pass-through ent

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary and permanent differences for each passthrough activity based on data entry in Forms K1, K1-2, K1-6, and K1Frgn. Use the field to enter the description, income (loss) per income statement, temporary difference, permanent difference, name, EIN, and end-of-year profit and loss percentages for interest in a passthrough activity where the partnership did not receive a Schedule K-1. ExacTax adds the items entered in the field to the calculated items in the printed statement.

Notes

Use the Schedule M-3 Information section in Form K1-6 to force the type of passthrough activity; to enter the end-of-year profit and loss percentages; and to override the calculated amounts for income (loss) per income


241

statement, temporary difference, and permanent difference for each passthrough activity where the partnership received a Schedule K-1.

Use the Ptr Alloc buttons in this form to allocate the total temporary and permanent difference for all passthrough activities included in the printed statement.

Items relating to reportable trans

If Forms 8886 are completed for reportable transactions, ExacTax sequentially numbers the forms (Form 8886, line A). Enter the number of the reportable transaction in the Form 8886 Number column of the field, and enter the related income (loss) amounts as required.

Other income (loss) items with diff

Use the field to enter other income (loss) items that have a difference between the book and tax amount and are not included on any other line of Schedule M-3.

Other items with no differences

If you leave this field blank and enter X in the Calculate adjustment to balance Schedule M-3 field in Form M3, ExacTax calculates the difference between the Net income (loss) on Form 1065, Page 5, Analysis of Income and Schedule M-3, Part II, line 26(d) and enters the amount on Schedule M-3, Part II, line 25, columns (a) and (d).

Enter an amount, including 0 (zero), in this field to use a different amount for the income (loss) per income statement for Schedule M-3, Part II, line 25(a). ExacTax completes column (d) based on your entry in this field.

Book-Tax Differences

Use this section to enter Schedule M-3 book-tax differences that transfer to Schedule K. This section should be used only to transfer amounts to Schedule K; ExacTax assumes that you have recorded these items elsewhere in Forms M3-2 and M3-3.


ExacTax cannot automatically transfer the amounts entered for Schedule M-3 to Schedule K, Other tax-exempt income. Use the field to enter the amount of other tax-exempt income to be included in Schedule K, Other tax-exempt income.


ExacTax cannot automatically transfer the amounts entered for Schedule M-3 to Schedule K, Nondeductible expenses. Use the field to enter the amount of nondeductible expenses to be included in Schedule K, Nondeductible expenses.

Tax credit adjustment not on books (Force)

ExacTax automatically calculates the tax credit adjustment not on books, which represents the difference between tax and book income when tax credits affect income of the return. The credits from Forms 5884, 6765, 8820, 8826, 8844, 8845, 8846, 8881, 8882, 8932, and 8941 reduce salaries and wages / labor hired, taxes and licenses, employee benefit programs, and other deductions/expenses of the associating activity. The credits from Forms 6478 and 8864 increase other income of the associating activity. These adjustments generally are not made when computing book income. Enter an amount, including 0 (zero), to override the calculated amount of tax credit adjustment that appears on Schedule M-3 and Schedule K, Nondeductible expenses.


242

Schedule M-3 - Expense and Deduction ItemsM3-3 (2016)

Expense and Deduction Items

Other post‐retirement benefitsDeferred compensation

Syndication expenses per 1.709‐2(b)

Other exp/ded items with differences

Judgments/damages/awards/sim costs

Amortization/impairment of goodwill


Interest expense (Enter on Screen 8916A)

Depletion ‐ other than oil and gasIntangible drilling and develop costs

Other than reduction to expense items for current year credits and disallowed conservation expenses

Charitable contributions:Cash and tangible property


Foreign deferred income tax expenseForeign current income tax expenseState and local deferred inc tax expenseState and local current inc tax expense

Equity‐based compensation

Purchase vs lease (for purch/lessees)

Intangible property

Current year acquisition or reorg:Investment banking feesLegal and accounting fees

Organizational expenses per 1.709‐2(a)

Other amort or impairment write‐offsDepletion ‐ oil and gas

DepreciationBad debt expense

Amort of acq, reorg, and start‐up costs

Fines and penalties

Pension and profit‐sharing

DifferenceTemporary

Income StatementExpense per Permanent

Difference

Research and development costs


*

*

*

*

****

*

1 2 3 4 5

6 7 8 9 10

11 12 13 14 15

16 17 18 19 20

21 22 23 24 25

26 27 28 29 30

31 32 33 34 35

36 37 38 39 40

41 42 43 44 45

46 47 48 49 50

51 52 53 54 55

56 57 58 59 60

61 62 63 64 65

66 67 68 69 70

71 72 73 74 75

76 77 78 79 80

81 82 83 84 85

86 87 88 89 90

91 92 93 94 95

96 97 98 99 100

106 107 108 109 110

111 112 113 114 115

116 117 118 119 120

121 122 123 124 125

126 127 128 129 130

131 132

133 134 135 136 137

138 139 140 141 142

143 144 145

M3-3 63C



243

Form [63C] - Schedule M-3 - Expense and Deduction Items

Overview

Use this form to enter information necessary to complete Schedule M-3, Part III, Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return - Expense / Deduction Items. Use Form M1M2 to enter information necessary to complete Schedule M-1.

for data-entry guidelines to prevent electronic filing rejections.

Expense and Deduction Items

Use this section to enter expense and deduction items from the partnership's income statement and the temporary and permanent difference for each item.

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary or permanent difference for the following items on Schedule M-3, Part III.

Foreign current income tax expense, excluding amount from passthrough entities

Meals and entertainment expenses from all activities

Guaranteed payments from all activities

Pension and profit-sharing from all activities

Charitable contributions of cash and tangible property, excluding amounts from passthrough entities

Other amortization or impairment write-offs from all activities (from the Amortization - book field in Form M1M2.)

Depletion - other than oil and gas

Depletion - oil and gas (Form 1065-B only)

Intangible drilling and development costs, excluding amounts from passthrough entities

Depreciation from activities other than cost of goods sold (from the Depreciation / Section 179 - book fields in Form M1M2.)

Bad debt expense

Nondeductible portion of conservation expenses from Forms F and 4835

Tax credit adjustment for Forms 5884, 6478, 6765, 8820, 8826, 8844, 8845, 8846, 8864, 8881, 8882, 8932, and 8941

Expense per Income Statement / Temporary Difference / Permanent Difference

Report in column (a) the amount of expense included on Schedule M-3, Page 1, line 11 for each item on Schedule M-3, Part III. Enter these amounts in the Expense per Income Statement column. For any item of expense where there is a difference between the income statement and the tax return amount, enter the temporary portion in the Temporary Difference column and the permanent portion in the Permanent Difference column. ExacTax completes column (d) based on your entry in these fields.

Fields with an asterisk before the description default to ExacTax-calculated amounts based on current return information. To override the calculated amount, enter an amount, including 0 (zero), in the appropriate field.


244

Other exp/ded items with differences

Use the field to enter other expense or deduction items that have a difference between the book and tax amount and that are not included on any other line on Schedule M-3.

ExacTax adds the items entered in the field to the following items in the printed statement.

Nondeductible portion of conservation expenses from Forms F-2 and 4835-2

Tax credit adjustment for Forms 5884, 6478, 6765, 8820, 8826, 8844, 8845, 8846, 8864, 8881, 8882, 8932, and 8941

Note: Report expense or deduction items for which there is no difference between the book and tax amount and that are not included on any other line on Schedule M-3 in the Other items with no differences field in Form M3-2.


245

Schedule M-3 - Supplemental Attachment8916A (2016)

Cost of Goods Sold

Interest Income

Interest Expense

Other section 263A costsCorporate owned life insurance premiumsDepreciation

Lower of cost or market write‐downs

DepletionAmortizationDeferred compensationOther post‐retirement benefitsPension and profit sharingCompensation with section 162(m) limitationParachute paymentsMeals and entertainmentOther equity based compensationStock option expense

Amounts attributable to:Amounts attributable to cost flow assumptions

Inventory shrinkage accruals

Other items with differencesOther items with no differences

Excess inventory and obsolescence reserves

Income (Loss) per Temporary PermanentIncome Statement Difference Difference

Other interest incomeFrom tax affiliated groupFrom outside tax affiliated group

Intercompany interest income:Sale or lease interest incomeInterest income from hybrid securitiesTax‐exempt interest income

Interest expense from hybrid securitiesLease or purchase interest expenseIntercompany interest expense:

Paid to outside tax affiliated groupPaid to tax affiliated group

Other interest expense

DifferenceDifferenceIncome StatementPermanentTemporary

DifferenceTemporary

Income StatementExpense per Permanent

Difference

Expense per



*

*

*

*

*

*


1 2 3

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

19 20 21

22 23 24

25 26 27

31 32 33

34 35 36

37 38 39

40 41 42

43 44 45

46 47 48

49 50 51

52 53 54

55 56 57

58

59 60 61

62 63 64

65 66 67

68 69 70

71 72 73

74 75 76

77 78 79

80 81 82

83 84 85

86 87 88

89 90 91

8916A 63



246

Form [63] - Schedule M-3 - Supplemental Attachment

Overview

Use this form to enter information necessary to complete Form 8916-A, Supplemental Attachment to Schedule M-3.

Cost of Goods Sold

Use this section to enter information to calculate the total cost of goods sold for Form 8916-A, Part I. ExacTax transfers the total cost of goods sold from Form 8916-A to Schedule M-3, Part II, line 15. Click the Ptr Alloc buttons in Form M3-2 to allocate the total cost of goods sold to partners using a ratio other than the profit-sharing percentages.

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary or permanent difference for the following items on Form 8916-A, Part I.

Depreciation from Form 1125-A, Cost of Goods Sold (Enter the book amount in the Depreciation - book: Cost of goods sold field in Form M1M2.)

Other section 263A costs

Amounts attributable to cost flow assumptions / … / Amounts attributable to: Depletion / Corporate owned life insurance premiums / Inventory shrinkage accruals / … / Lower of cost or market write-downs

Enter the income (loss) per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part I. ExacTax completes Form 8916-A, Part I, column (d) based on your entry in these fields.

Depreciation

ExacTax automatically transfers book and tax amounts and calculates a temporary difference for cost of goods sold depreciation on Form 8916-A, Part I, line 2l, Depreciation. Enter amounts, including 0 (zero), to force the ExacTax calculated amounts for expense per income statement for column (a), the temporary difference for column (b), and the permanent differences for column (c) for Form 8916-A, Part I, line 2l, Depreciation. ExacTax completes column (d) based on your entry in these fields.

Other section 263A costs

ExacTax automatically transfers book and tax amounts to Form 8916-A, Part I, line 2n, Other section 263A costs. Enter amounts, including 0 (zero), to force the ExacTax-calculated amounts for expense per income statement for column (a), the temporary difference for column (b), and the permanent differences for column (c) for Form 8916-A, Part I, line 2n, Other section 263A costs. ExacTax completes column (d) based on your entry in these fields.

Other items with differences

Use the field to enter the income (loss) per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part I, line 6, Other items with differences. ExacTax completes column (d) based on your entry in these fields.

Other items with no differences

If you leave this field blank and enter X in the Calculate adjustment to balance Schedule M-3 field in Form M-3, ExacTax calculates the difference between the cost of goods sold on Form 1125-A, line 8 and Form 8916-A, Part I, line 8(d) and enters the amount on Form 8916-A, Part I, line 7, columns (a) and (d). Enter an amount, including 0 (zero), to use a different


247

amount for the expense per income statement for Form 8916-A, Part I, line 7, column (a). ExacTax completes column (d) based on your entry in this field.

Interest Income

Use this section to enter information to calculate the total interest income for Form 8916-A, Part II. ExacTax transfers the total interest income from Form 8916-A, Part II to Schedule M-3, Part II, line 11. Click the Ptr Alloc buttons in Form M3-2 to allocate the total interest income to partners using a ratio other than the profit-sharing percentages.

ExacTax automatically transfers book and tax amounts and calculates the necessary temporary and permanent difference for the following items on Form 8916-A, Part II.


Other interest income


ExacTax transfers the tax-exempt interest income from Forms K-4 and K1-5 and calculates the permanent difference on Form 8916-A, Part II, line 1. Enter amounts, including 0 (zero), to force the ExacTax calculated amounts for income (loss) per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part II, line 1.

Interest income from hybrid securities / … / Intercompany interest income: From tax affiliated group

Enter the income (loss) per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part II. ExacTax completes column (d) based on your entry in these fields.

Other interest income

ExacTax automatically calculates the difference between the interest income on Form 8916-A, Part II, line 6 and the total interest income reported on Schedule K, line 5 and displays the difference on Form 8916-A, Part II, line 5, columns (a) and (d). Enter an amount, including 0 (zero), to use a different amount for the income (loss) per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part II, line 5. ExacTax completes column (d) based on your entry in these fields.

Interest Expense

Use this section to enter information to calculate the total interest expense for Form 8916-A, Part III. ExacTax transfers the total interest expense from Form 8916-A, Part III to Schedule M-3, Part III, line 27. Click the Ptr Alloc buttons in Form M3-3 to allocate the total interest expense to partners using a ratio other than the profit-sharing percentages.

ExacTax automatically transfers book and tax amounts for Other interest expense on Form 8916-A, Part III.

Interest expense from hybrid securities / … / Intercompany interest expense: Paid to tax affiliated group

Enter the expense per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part III. ExacTax completes column (d) based on your entry in these fields.

Other interest expense

ExacTax automatically calculates the difference between the interest expense on Form 8916-A, Part III, line 5 and the total interest expense reported on Form 1065 from all activities (Page 1, Farm, Farm Rental, and Rental) and displays the


248

difference on Form 8916-A, Part III, line 4, columns (a) and (d). Enter an amount, including 0 (zero), to use a different amount for the expense per income statement for column (a), the temporary difference for column (b), and the permanent difference for column (c) for Form 8916-A, Part III, line 4. ExacTax completes column (d) based on your entry in these fields.


249

Additional Information for Schedule M-3 FilersC (2016)

Additional Information for Schedule M-3 Filers

Do amounts reported on Schedule M‐3 reflect allocations that are disproportionate? (1 = Yes, 2 = No)

Did the partnership make a change in method of accounting for financial statement purposes? (1 = Yes, 2 = No)

Did the partnership sell, exchange, or transfer any interest in an intangible asset? (1 = Yes, 2 = No)Did the partnership acquire an interest in an intangible asset from a related person? (1 = Yes, 2 = No)

Did the partnership make a change in method of accounting for income tax purposes? (1 = Yes, 2 = No)

Any transfers subject to the disclosure requirements of Regulations section 1.707‐8? (1 = Yes, 2 = No) 1

2

3

4

5

6

C 64



250

Form [64] - Additional Information for Schedule M-3 Filers

Overview

Use this form to enter information for Schedule C, Additional Information for Schedule M-3 Filers. Schedule C is required when Schedule M-3, Net Income (Loss) Reconciliation for Certain Partnerships is being filed.

Additional Information for Schedule M-3 Filers

Use this section to answer the questions for Schedule C.


251

Guaranteed payments - nondeductible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Guaranteed payments - deductible (Other than health insurance, pensions, and IRAs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4]

PtrAlloc

[6][5]Unrecaptured section 1250 gain(Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8][7]Section 1231 gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[9]

Income (Loss)

4797 ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [46]

Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation adjustmnet post 1986 (Excludes specially allocated amounts) . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[23][24][22]

[25]

Alternative Minimum Tax (AMT) Items

Depletion (other than oil & gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [26] [27]Gross income from oil, gas, and geothermal properties (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [42] [43]Deductions allocable to oil, gas and geothermal properties (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reforestation expense deduction . . . . . . . [§ 21]

Health insurance considered guaranteed payments to partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preproductive period expenses (Farm and Farm Rental activies only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#[21]


[21]

[21]

[21]

[19]

[16]

Deductions

PtrAlloc

Pensions and IRAs considered guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[20]

Deductions - royalty income (Rental activities marked as Royalty only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [17][18]

[11]

Section 179

PtrAlloc

Section 179 expense - personal property (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10]Carryover from prior year - personal property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [14]

Description . . . . . . .

[1]Unit . . . . . . . . . . . . . . . . .

[3] [2]Form . . . . . .

Other AMT items . . . . . . . . . . . . . . . . . . . . [§ 28]#

[28]


[28]

[28]

[28]

Sepk Separately Stated Income and Expenses

6PSEPK 03 12/08/16 PARTNERSHIP 65

65Overflow # 2016

ExacTax, Inc.

[44] [45]

Nonrecourse - not at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nonrecourse - at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[31][32][30]

[33]


Qualified nonrecourse - at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[34] [35]Qualified nonrecourse - not at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[36] [37]Recourse - at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[38] [39]Recourse - not at risk (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[40] [41]


252

Form [65] - Separately Stated Income and Expenses

Overview

Use this form to enter Schedule K items that should be separately stated by partner by activity, in order for the partner to complete their individual tax return. The total of amounts entered on this form will be used to complete Schedules K and K-1. The specific amounts entered on this form for each activity will be separately reported on the Partner’s Schedule K-1 Activity Worksheet.

Income (Loss)

Use this section to enter Schedule K income (loss) items for each activity. Use Form K to enter income (loss) items that do not need to be separately stated by partner by activity.

4797 ordinary income

Click the Ptr Alloc button to specially allocate ordinary gains and losses for Form 4797. If specially allocated, ExacTax moves the amount from Form 1065, Page 1 to Schedule K, Other income (loss).

Guaranteed payments - deductible

Use Forms 4835-2, F-2, Inc, K-2, OGWell, and Rent to enter the deductible guaranteed payments for each activity. ExacTax allocates the guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate deductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.

Health insurance and pensions and IRAs considered guaranteed payments to partners are not included in this partner allocation. To allocate these payments using ratios other than the profit-sharing percentage, use the respective Ptr Alloc buttons below.

ExacTax combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in Forms 4835-2, F-2, Inc, K-2, OGWell, and Rent; and the nondeductible guaranteed payments you enter in this form to calculate the total guaranteed payments for Schedule K, Guaranteed payments.

Guaranteed payments - nondeductible

Enter the nondeductible portion of guaranteed payments for each activity. ExacTax allocates the amount to the partners based on the profit-sharing percentage. Click the Ptr Alloc button to allocate nondeductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.

ExacTax combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in Forms 4835-2, F-2, Inc, K-2, OGWell, and Rent; and the nondeductible guaranteed payments you enter in this field to calculate the total guaranteed payments for Schedule K, Guaranteed payments.

Unrecaptured section 1250 gain (Force)

ExacTax automatically calculates unrecaptured section 1250 gain for each activity from the entries you make in Forms 8824, InstPY, and Sale. Enter an amount, including 0 (zero), to override the automatic calculation. ExacTax includes the total unrecaptured section 1250 gain from all activities with the Unrecaptured section 1250 gain from Form 1099-DIV field in Form K and the Unrecaptured section 1250 gain from sale or exchange of partnership interest field in Form D for the printed statement on Schedule K, Unrecaptured section 1250 gain.


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Section 1231 gain (loss)

ExacTax automatically calculates the section 1231 gain (loss) from the sale of business property for each activity. Click the Ptr Alloc button for each activity to allocate section 1231 gain (loss) to the partners using ratios other than the profit-sharing percentage.

Section 179

Use this section to allocate section 179 expense and enter the carryover 179 for each activity.

Section 179 expense - personal property (Force) / qualified real property (Force)

ExacTax automatically calculates the section 179 expense for personal and qualified real property for each activity based on data entry in the asset module or in Form 4562. To force ExacTax to use a specific section 179 expense amount, enter the desired amount, including 0 (zero), in these fields. If an amount is entered for any activity, then all activities must be forced.

Notes

Use Form OthAsset in the General folder to use an amount different than the amount ExacTax calculates for the total cost of section 179 property placed in service this year, the maximum dollar limit, and the business income limitation on Form 4562.

These fields are not applicable to electing large partnerships (Form 1065-B).

Deductions

Use this section to enter deduction items other than the section 179 expense deduction for each activity. Use Form K-2 to enter deductions that do not need to be separately stated by partner by activity.

Health insurance considered guaranteed payments to partners

Use Forms 4835-2, F-2, Inc, K-2, OGWell, and Rent to enter health insurance considered guaranteed payments to partners for each activity. ExacTax allocates the health insurance considered guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate health insurance considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.


Deductions – royalty income

Use Form Rent to enter royalty deductions. ExacTax allocates the net deductible royalty deductions reported on Schedule K, Other deductions to the partners based on the profit-sharing percentage. Click the Ptr Alloc button to allocate Schedule K royalty deductions to the partners using ratios other than the profit-sharing percentage.

This field is applicable only to Forms SepK in the Rent & Royalty folder.

Preproductive period expenses (Force)

ExacTax transfers the amount of productive period expenses entered on Forms 4835-2 and F-2 to Schedule K, Other deductions. Enter an amount, including 0 (zero), to override the amount for this activity that transfers to Schedule K. Click the


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Ptr Alloc button to allocate Schedule K preproductive period expenses to the partners using ratios other than the profit-sharing percentage.

This field is applicable only to Forms SepK in the Farm and Farm Rental folders.


Use Forms 4835-2, F-2, Inc, K-2, OGWell, and Rent to enter pensions and IRAs considered guaranteed payments to partners for each activity. ExacTax allocates the pension and IRAs considered guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate pensions and IRAs considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.



In addition to the fields in this section, ExacTax automatically calculates and transfers the following items to the Schedule K, Alternative Minimum Tax (AMT) Items section. Use Form K1-5 to enter information from Schedules K-1 received from other partnerships, estates, or trusts in which the current partnership is a partner or beneficiary.

Depreciation adjustment on property placed in service after 1986 from specially allocated assets

Gross income from oil, gas, and geothermal properties related to ordinary income from the ExacTax/Oil & Gas module

AMT deductions allocable to oil, gas, and geothermal properties related to ordinary income from the ExacTax/Oil & Gas module

Use this section to enter adjustments, tax preferences, and gross income and deductions from oil, gas, and geothermal properties for each activity.

Depreciation adjustment post 1986

ExacTax automatically transfers the depreciation adjustment on MACRS property placed in service after 1986 for this activity from the Form 51, excluding specially allocated amounts. If you did not enter assets in the asset module, enter the amount in this field.

Note: ExacTax transfers only the depreciation adjustment for assets that have a MACRS method selected in the Method field (Tax column) in the asset module.

Adjusted gain or loss

ExacTax automatically transfers the adjusted gain or loss for this activity from the Form 51. ExacTax calculates the adjusted gain or loss as the gain (loss) for the AMT treatment less the gain (loss) for the Tax treatment. If you did not enter assets in the asset module, enter the amount in this field.

Note: ExacTax transfers only the adjusted gain or loss for assets that have a MACRS method selected in the Method field (Tax column) in the asset module.

Gross income from oil, gas, and geothermal properties (Force) / Deductions allocable to oil, gas, and geothermal properties (Force)


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The gross income from and alternative minimum tax deductions allocable to oil and gas wells associated with Form 1065, Page 1 automatically transfer from the ExacTax/Oil & Gas module to Schedule K. If you are not licensed for this module, enter the amount in these fields.


Use this section to enter information for Schedule K-1, Item K.

Nonrecourse - at risk (Force) / … / Recourse - not at risk (Force)

ExacTax automatically calculates the partners' share of liabilities by activity for Schedule K-1, Item K and for the Partner's Basis Worksheet, Increase (decrease) in share of liabilities based on data entry in Form L and in Form K1. Enter an amount, including 0 (zero), in any of these fields to use an amount different from the calculated amount. ExacTax automatically combines the at-risk and not at-risk nonrecourse, qualified nonrecourse, and recourse liabilities from Forms L and K1 and prints each partner's share on Schedule K-1 and the Partner Basis Worksheet.

ExacTax allocates qualified nonrecourse and recourse liabilities according to the loss percentages. Click the Ptr Alloc buttons in this section to allocate the liabilities to partners using ratios other than the loss percentages.

If any not at-risk amounts are allocated to a partner, ExacTax generates a detailed schedule in Schedule K-1, Other information showing the at-risk and not at-risk portions of all three liabilities.


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Noncash Contributions Less Than $5,0008283P1 (2016)

General Information

Partial Interest Information

Restricted Use

Contribution type (1 = 50%, 2 = 30%, 3 = Capital gain property to 50% organization (30%), 4 = Capital gain property 20%)

Description of donated property

Donee organization:NameAddressCity, state, zip code

Date of contribution or date received by donee organizationDate acquired by donor

Explanation of restrictions and/or designated use

How acquired by donor (P = Purchase, I = Inheritance, G = Gift, E = Exchange)Donor's cost or basisFair market valueContribution amount if different than fair market valueMethod used to determine fair market value (A = Appraisal, C = Catalog, T = Thrift shop value, S = Sales/comparative, O = Other)

Amount claimed as deduction for this tax yearAmount claimed as deduction for any prior tax yearsDonee organization (if different):

NameAddressCity, state, zip code

Place property is located or keptPerson with actual possession

Restriction on right to use or dispose? (1 = Yes, 2 = No)Give rights to anyone other than donee organization? (1 = Yes, 2 = No)Restriction for a particular use? (1 = Yes, 2 = No)


Vehicle identification number (VIN)

Enter Form 1098‐C contributions of motor vehicles, boats and airplanes on Screen 1098C

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Form [73A] - Noncash Contributions Less Than $5,000

Overview

Use this form to report noncash charitable contributions greater than $500 but less than or equal to $5,000. Enter the information for each item or group of similar items on a separate input form.

Notes

ExacTax generates one Form 8283, Page 1 for every five input forms completed, except when you enter partial interest and/or restricted use information. ExacTax generates a separate Form 8283 for each form with partial interest and/or restricted use information.

Use Form 1098C to report noncash contributions of motor vehicles, boats, or airplanes.

General Information

Use this section to complete Form 8283, Page 1, Section A, Part I.

Description of donated property

Enter a description of the donated property. This field is mandatory. ExacTax uses this information to complete Form 8283.

Contribution type

Indicate the type of property contributed. If you leave this field blank, ExacTax defaults the contribution type to 50 percent.

Donee organization

Enter the name and address of the donee organization.

Date acquired by donor

Enter the date the donor acquired the property. ExacTax transfers this information to Form 8283, Section A, Part I, column (e) if the fair market value of the contribution is greater than $500.

How acquired by donor

Identify the method by which the donor acquired the property. If you leave this field blank, ExacTax defaults to Purchase as the method of acquisition. ExacTax transfers this information to Form 8283, Section A, Part I, column (f) if the fair market value of the contribution is greater than $500.

Donor's cost or basis

Enter the cost or basis of the donated property. ExacTax allows you to enter 0 (zero) in this field, if applicable. ExacTax transfers this information to Form 8283, Section A, Part I, column (g) if the fair market value of the contribution is greater than $500.

Contribution amount if different than fair market value

Enter the amount of charitable contributions to appear on Schedule K, if the amount is different from the amount entered in the Fair market value field.


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Method used to determine fair market value

Indicate the method used to determine the fair market value of the property on the date of donation. If you leave this field blank, ExacTax defaults to Other as the method used to determine the fair market value.

Partial Interest Information

Use this section to enter information for donations of only a partial interest in the property. ExacTax uses this information to complete Form 8283, Page 1, Section A, Part II, question 2.

Donee organization (if different)

If the organization that received the prior interest in the property is the same as the one receiving the partial interest this year, do not complete these fields. If the organizations are different, enter the prior-year organization's name and address in the appropriate fields.

Restricted Use

Use this section to enter information for donations given with restrictions. If one of these questions is answered Yes, ExacTax uses the information to complete Form 8283, Page 1, Section A, Part II, question 3.


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Noncash Contributions Greater Than $5,0008283P2 (2016)

General Information

Donated Property Information

Appraiser Information

Donee Acknowledgment

Identifying letter of appraised property (A, B, C, D)Specific item description (Force)Identifying numberBusiness addressCity, state, zip code

Date received by donee organizationNameAddressCity, state, zip codeIdentifying numberDoes the organization intend to use the property for an unrelated use? (1 = Yes, 2 = No)

d = Art less than $20,000, e = Other real estate, f = Securities, g = Collectibles, h = Intellectual property, i = Vehicles, j = Other)

Contribution type (1 = 50%, 2 = 30%, 3 = Capital gain property to 50% organization (30%), 4 = Capital gain property 20%)

Type of property (a = Art $20,000 or more, b = Qualified conservation contribution, c = Equipment,

Description of propertyOverall physical condition

Date acquired by donorHow acquired by donor (P = Purchase, I = Inheritance, G = Gift, E = Exchange)Donor's cost or basisBargain sale amount receivedDeduction code (1 = Appraised FMV, 2 = Amount claimed as deduction)

Fair market valueContribution amount (Force)Specially allocate

Description of propertyOverall physical condition

Date acquired by donor

Donor's cost or basisBargain sale amount received

Fair market valueContribution amount (Force)Specially allocate

How acquired by donor (P = Purchase, I = Inheritance, G = Gift, E = Exchange)


Property A Property B

Property DProperty C

Deduction code (1 = Appraised FMV, 2 = Amount claimed as deduction)

Date of contribution

Date of contribution

Enter Form 1098‐C contributions of motor vehicles, boats and airplanes on Screen 1098C

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8283P2 73B



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Form [73B] - Noncash Contributions Greater Than $5,000

Overview

Use this form to enter noncash contributions of items or groups of similar items greater than $5,000.

Notes

ExacTax generates one Form 8283, Page 2 for each Form 8283P2.

Use Form 1098C to report noncash contributions of motor vehicles, boats, or airplanes.

General Information

Use this section to enter general information regarding Form 8283, Page 2, Section B.

Contribution type

Indicate the type of property contributed. If you leave this field blank, ExacTax defaults the contribution type to 50 percent.

Type of property

Indicate the type of property donated. ExacTax uses the code entered to mark the appropriate checkbox on Form 8283, Page 2, Section B, Part I.

Donated Property Information

Use this section to enter information related to the properties to be included on Form 8283, Page 2, Section B, Part I. If the client donated more than four different items, enter this information in additional units of this form.

Bargain sale amount received

Enter the amount received for a bargain sale. When Appraised FMV is selected in the Deduction code field, ExacTax subtracts this amount from the amount entered in the Fair market value field for the contribution amount on Schedule K.

Deduction code

The code entered in this field determines the fields in which ExacTax places the contribution amount on Form 8283, Page 2, Section B, Part I. If you leave this field blank, ExacTax defaults to Appraised FMV.

Fair market value

Enter the fair market value of the property on the date the property was donated. When Appraised FMV is selected in the Deduction code field, ExacTax subtracts the amount entered in the Bargain sale amount received field from the amount entered in this field for the contribution amount on Schedule K.

Contribution amount (Force)

Enter an amount to override the calculated charitable contribution amount that appears on Schedule K.


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Appraiser Information

Use this section to enter information to complete Form 8283, Page 2, Section B, Parts II and III for items that are included on Form 8283, Page 2, Section B, Part I and that have an appraised value of $500 or less per item.

Identifying letter of appraised property

Enter A, B, C, or D to identify the Form 8283, Page 2, Section B, Part I property. ExacTax automatically transfers the description entered in the Description of property field that corresponds with the identifying letter entered in this field. If a different description is preferred, you can use the Specific item description (Force) field to override the description ExacTax transfers.

Specific item description (Force)

ExacTax automatically transfers the description entered in the Description of property field that corresponds with the identifying letter entered for the appraised property. If more detail is required, you can override that description by entering a description in this field.

Donee Acknowledgment

Use this section to complete Form 8283, Page 2, Section B, Part IV for items that are included on Form 8283, Page 2, Section B, Part I. Enter the donee organization, the address of the organization, and the date on which the donation was received and indicate whether the organization intends to use the property for an unrelated use.


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Credits - Forms 5884 and 6478Cr (2016)

Other Credits

Form 5884 - Work Opportunity Credit

Form 6478 - Biofuel Producer Credit

Specially allocate

Qualified first‐year wages at least 400 hoursQualified first‐year wages at least 120 hours but fewer than 400 hours

Specially allocate

Qualified second‐year wages certified as long‐term family assistance recipients

Enter fuel production in gallons

Qualified second generation biofuel

Unit

FormDescription


See Screen CrGen and Screen CrCO‐OP for additional Form 6478 information

See Screen CrCO‐OP for additional Form 5884 information

Other credits not entered elsewhere

Form 5884 credit to reduce salaries and wages / labor hired (Force)

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Cr 80A



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Form [80A] - Credits - Forms 5884 and 6478

Overview

Use this form to enter information for Forms 5884 and 6478 and to enter credit detail for credits not entered on Forms Cr through Cr-5. Information from this form is separately reported by activity on the Partner’s Schedule K-1 Activity Worksheet. Therefore, enter data for this form in the activity folder (Income & Deductions, Farm, etc.) to which the credit is related.

Other Credits

Use this section to enter credit information not related to credits from a passthrough Schedule K-1 activity nor entered on Forms Cr, Cr-2, Cr-3, Cr-4, and Cr-5.

Other credits not entered elsewhere

Enter other credits not entered elsewhere. ExacTax reports this information on Schedule K and Schedule K-1 differently depending on the activity to which it was entered.

Income & Deductions and Farm – reported on Schedule K, line 15f – Other credits and Schedule K-1, box 15, code P – Other credits

Farm Rental - reported on Schedule K, line 15d – Other rental real estate credits and Schedule K-1, box 15, code F – Other rental real estate credits

Rent & Royalty, based on the selection of the Type of property field

Type 1 - Rental real estate- reported on Schedule K, line 15d – Other rental real estate credits and Schedule K-1, box 15, code F – Other rental real estate credits

Type 2 - Other rental - reported on Schedule K, line 15e – Other rental credits and Schedule K-1, box 15, code G – Other rental credits

Type 3 - Royalty - reported on Schedule K, line 15f – Other credits and Schedule K-1, box 15, code P – Other credits

Form 5884 - Work Opportunity Credit

Use this section to enter information to generate Form 5884, Work Opportunity Credit. Use Form CrCO-OP in the Credits folder to enter work opportunity credit from cooperatives.

Qualified first-year wages at least 120 hours but fewer than 400 hours / Qualified first-year wages at least 400 hours / Qualified second-year wages certified as long-term family assistance recipients

Enter qualified wages for Form 5884, Work Opportunity Credit for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 5884 and transfers the net work opportunity credit to Schedule K.


ExacTax reduces salaries and wages / labor hired of the associating activity by the amount of credit the associating activity generated. Enter an amount in this field, including 0 (zero), to use a different adjustment amount. The reduction is limited to the lesser of the amount you entered in this field or the maximum allowable credit. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.


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Use this section to enter information to calculate Form 6478, Biofuel Producer Credit. Use Form CrGen and Form CrCO-OP in the Credits folder to enter the IRS CB registration number and to enter biofuel producer credit from cooperatives.

Qualified second generation biofuel

Enter the fuel production in gallons for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 6478 and transfers the net biofuel producer credit to Schedule K. ExacTax increases other income of the associating activity by the amount of credit the associating activity generated. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.


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Credits - Forms 6765, 8820, and 8826Cr-2 (2016)

Form 6765 - Credit for Increasing Research Activities

Form 8820 - Orphan Drug Credit

Form 8826 - Disabled Access Credit

Rental or lease costs of computersCost of suppliesWages for qualified servicesQualified organization base period amountBasic research payments to qualified organizations

Total qualified research expenses for prior 3 years: (Section B only)

Form 6765 credit to reduce other deductions / expenses (Force)

Amounts paid or incurred to energy consortia

Specially allocate

Qualified clinical testing expenses

Specially allocate

Average annual gross receipts

Applicable percentage of contract research expenses

Third prior yearSecond prior yearFirst prior year

Portion of credit on Form 8932, line 2, applicable to this credit


Eligible access expendituresForm 8826 credit to reduce other deductions / expenses (Force)Specially allocate


Orphan drug information

Description Form

Unit

See Screen CrGen for additional Form 6765 information


Portion of research credit elected as a payroll tax credit (Do not enter more than $250,000)

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Cr-2 80B



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Form [80B] - Credits - Forms 6765, 8820, and 8826

Overview

Use this form to enter information for Forms 6765, 8820, and 8826.


Use this section to enter information to calculate Form 6765, Credit for Increasing Research Activities. Use Form CrGen in the Credits folder to enter additional information for Form 6765, such as to elect the alternate simplified method.

Amounts paid or incurred to energy consortia / … / Portion of research credit elected as a payroll tax credit

Enter information for Form 6765, Credit for Increasing Research Activities for each activity on a separate form. ExacTax sums the amount for all units when calculating Form 6765 and transfers the net credit for increasing research activities to Schedule K.


Unless you mark the Elect reduced credit under section 280C(c) field on Form CrGen in the Credits folder, ExacTax reduces other deductions / expenses of the associating activity by the amount of credit (before the reduction for elected payroll tax credit) the associating activity generated. Enter an amount in this field, including 0 (zero), to use a different adjustment amount. The reduction is limited to the lesser of the amount you entered in this field or the maximum allowable credit adjustment. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.

Form 8820 - Orphan Drug Credit

Use this section to enter information to calculate Form 8820, Orphan Drug Credit.

Qualified clinical testing expenses

Enter qualified clinical testing expenses for Form 8820, Orphan drug credit for each activity on a separate form. ExacTax sums the amount for all units when calculating Form 8820 and transfers the net orphan drug credit to Schedule K.


Enter the portion of the Form 8932 credit that is attributable to wages also included in the Qualified clinical testing expenses field for each activity on a separate form. ExacTax sums the amount for all units when calculating Form 8820.

Orphan drug information

Use the field to enter the name of the orphan drug; the designation application number; and the date the drug was designated under section 526 of the Federal Food, Drug, and Cosmetic Act for Form 8820, Page 2, Part II.


ExacTax reduces other deductions / expenses of the associating activity by the amount of credit the associating activity generated. Enter an amount in this field, including 0 (zero), to use a different adjustment amount. The reduction is limited to the lesser of the amount you entered in this field or the maximum allowable credit. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.


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Form 8826 - Disabled Access Credit

Use this section to enter information to calculate Form 8826, Disabled Access Credit.

Eligible access expenditures

Enter the eligible access expenditures for each activity on a separate form. ExacTax sums the amount for all units when calculating Form 8826 and transfers the net disabled access credit to Schedule K.




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Credits - Forms 8835 and 8844Cr-3 (2016)

Form 8835 - Electricity, Refined and Indian Coal Credit

Form 8844 - Empowerment Zone Employment Credit

Qualified empowerment zone wages

Specially allocate

Kilowatt‐hours produced and sold:

Specially allocate

Part II

Wind

Open‐loop biomass

Tons produced and sold:

Closed‐loop biomassGeothermalSolar

Small irrigation powerLandfill gasTrashHydropowerMarine and hydrokinetic renewables


Refined coal productionIndian coal production

Description Form

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Form [80C] - Credits - Forms 8835 and 8844

Overview

Use this form to enter information for Forms 8835 and 8444.

Note: A number of tax credits expired as of December 31, 2014; however, these credits may be extended with future tax legislation. With this release, ExacTax/1065 contains input form fields for the expired credits, but ignores entries in them on the credit form. If the credits are extended, an update will be released via CS Connect to re-enable the form calculations.


Use this section to calculate Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit. Use Form CrGen and Form CrCO-OP in the Credits folder to enter total grants, proceeds, and additions for this and all prior years for Form 8835 and to enter renewable electricity credit from cooperatives.

Form 8844 - Empowerment Zone Employment Credit

Use this section to enter information to calculate Form 8844, Empowerment Zone Employment Credit. Use Form CrCO-OP in the Credits folder to enter empowerment zone employment credit from cooperatives.

Qualified empowerment zone wages

Enter the qualified empowerment zone wages for Form 8844, Empowerment Zone Employment Credit for each activity on a separate form. ExacTax sums the amount for all units when calculating Form 8844 and transfers the net empowerment zone employment credit to Schedule K.




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Credits - Forms 8845, 8846, 8864, and 8874Cr-4 (2016)

Form 8845 - Indian Employment Credit

Form 8846 - Tip Tax Credit

Form 8864 - Biodiesel and Renewable Diesel Fuels Credit

Form 8874 - New Markets Credit

Qualified agri‐biodiesel production

Enter number of gallons sold or used

Specially allocate

Qualified community development entity (CDE) investment

Specially allocateTips for employees whose wages exceed $118,500 or are exempt from social security taxesTips not subject to credit provisionsTips received by employees for services subject to social security and Medicare taxes

Biodiesel (other than agri‐biodiesel)Agri‐biodieselRenewable dieselBiodiesel (other than agri‐biodiesel) included in a mixtureAgri‐biodiesel included in a mixtureRenewable diesel included in a mixture

Specially allocate

Specially allocate

Calendar year 1993 qualified wages and employee health insurance costsQualified wages and employee health insurance costs paid


Description Form

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Form [80D] - Credits - Forms 8845, 8846, 8864, and 8874

Overview

Use this form to enter information for Forms 8845, 8846, 8864, and 8874.

Form 8845 - Indian Employment Credit

Use this section to enter information to calculate Form 8845, Indian Employment Credit. Use Form CrCO-OP in the Credits folder to enter Indian employment credit from a cooperative.

Qualified wages and employee health insurance costs paid / Calendar year 1993 qualified wages and employee health insurance costs

Enter the wages and costs for Form 8845, Indian Employment Credit for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8845 and transfers the net Indian employment credit to Schedule K.



Form 8846 - Tip Tax Credit

Use this section to enter information to calculate Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.

Tips received by employees for services subject to social security and Medicare taxes / Tips not subject to credit provisions / Tips for employees whose wages exceed $118,500 or are exempt from social security taxes

Enter tip information for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8846 and transfers the net credit to Schedule K. ExacTax reduces taxes and licenses of the associating activity by the amount of credit the associating activity generated. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.

Form 8864 - Biodiesel and Renewable Diesel Fuels Credit

Use this section to enter information to calculate Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Use Form CrCO-OP in the Credits folder to enter biodiesel and renewable diesel fuels credit from cooperatives.

Biodiesel (other than agri-biodiesel) / … / Qualified agri-biodiesel production

Enter the number of gallons sold or used for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8846 and transfers the net biodiesel and renewable diesel fuels credit to Schedule K. ExacTax increases other income of the associating activity by the amount of credit the associating activity generated. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.

Form 8874 - New Markets Credit

Use this section to enter information to calculate Form 8874, New Markets Credit.


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Credits - Forms 8881, 8882, 8932 and 8941CR-5

6PCR-5 01 10/25/16 PARTNERSHIP

Overflow # 2016

ExacTax, Inc. 80E

80E

Form 8941 - Credit Small Employer Health Ins Premiums

State premium subsidies paid and any state tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[4]Qualified startup costs (Do not enter more than $1,000). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Specially allocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [5]

Form 8882 - Credit Employer - Provided Childcare Facilities[6]Qualified childcare facility expenditures paid or incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[7]Qualified childcare resource and referral expenditures paid or incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[8]Form 8882 credit to reduce page 1 other deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Specially allocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [9]

Form 8932 - Credit for Employer Differential Wage Payments

Eligible differential wage payments paid during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[11]

Specially allocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

[21]Specially allocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [22]

Force calculation: (If a force is entered in any field, all force fields must be entered)

Number of employees during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [14]Number of full-time equivalent employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .Total wages paid by employer (Average wages will automatically be rounded to the next lowest $1,000) . . . . . . . . . . . .Total premiums paid by employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [17]

[16][15]

Average premiums for small market group paid by employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [18]

Form 8881 - Credit Small Emp Pension Plan Startup Costs

Number of employees during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Number of full-time equivalent employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .

[19][20]

[§ 13] Employee and insurance coverage informationPostalCode#

Days Worked(Max 260)

Percent of PremiumsPaid by Employer

Employee Wages Paid

(1 = Employee only, 2 = Family, 3 = No insurance)

12345

Employees Name

Weeks Worked(Max 52)

Employer PremiumsPaid

12345

Average Premiums for StateSmall Group Market

Weeks Enrolledif not Full Year

SeasonalEmployee

Type ofInsuranceCoverage

County Business is Located

Cont Hours Worked(Max 2080)

Form 8932 credit to reduce salaries and wages/labor hired (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[10]


273

Form [80E] - Credits - Forms 8881, 8882, 8932, and 8941 (1065)

Overview

Use this form to enter information for Forms 8881, 8882, 8932, and 8941.

Form 8881 - Credit Small Emp Pension Plan Startup Costs

Use this section to enter information to calculate Form 8881, Credit for Small Employer Pension Plan Startup Costs.

Qualified startup costs

Enter the qualified pension plan startup costs for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8881. Do not enter more than $1,000 total for all activities. The net credit for small employer pension plan startup costs transfers to Schedule K. ExacTax reduces other deductions / expenses of the associating activity by the amount of credit the associating activity generated. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.

Form 8882 - Credit Employer-Provided Childcare Facilities

Use this section to enter information to calculate Form 8882, Credit for Employer-Provided Childcare Facilities and Services.

Qualified childcare facility expenditures paid or incurred / Qualified childcare resource and referral expenditures paid or incurred

Enter the qualified expenditures paid or incurred for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8882 and transfers the net credit for employer-provided childcare facilities and services to Schedule K.



Form 8932 - Credit for Employer Differential Wage Payments

Use this section to enter information to calculate Form 8932, Credit for Employer Differential Wage Payments. Use Form CrCO-OP in the Credits folder to enter credit for employer differential wage payments from cooperatives.

Eligible differential wage payments paid during the tax year

Enter eligible wages for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8882 and transfers the net credit for employer differential wage payments to Schedule K.




274

Form 8941 - Cr Small Employer Health Insurance Premiums

Use Form CrGen and Form CrCO-OP in the Credits folder to enter general information such as the marketplace identifier and to enter credit for small employer health insurance premiums from cooperatives.

Enter information for the credit for each activity on a separate form. ExacTax sums the amounts for all units when calculating Form 8941. The credit is optimized based on hours, days, and weeks worked and transfers the highest of the calculated credit amounts to Form 8941. From Form 8941, the small employer health insurance premiums credit transfers to Schedule K and reduces the associating activity expenses by the amount of credit the associating activity generated. ExacTax also generates a Schedule M-1 or Schedule M-3 reconciling adjustment for the total amount of the tax credit adjustment from all activities.

Employee and insurance information

Use the field to enter the employee name (for tracking purposes only); select the type of insurance coverage; select the state and county of employment; enter the wages paid; enter the hours, days, and weeks worked; enter the percent of the total premiums the employer paid for each employee; enter the weeks enrolled in insurance coverage; and indicate if the employee is a seasonal employee. ExacTax uses the information to automatically complete the Average Premium for Small Group column, according to the table in the Form 8941 instructions.

Notes

ExacTax ignores information entered in the field for this field if there is data in any of the Force calculation fields in this form.

ExacTax calculates the number of individuals employed who are employees for the purpose of this credit for Form 8941, line 1 as the number of employees entered in this statement (including seasonal employees). Therefore, include all qualifying employees even if an employee has no insurance coverage.

ExacTax calculates the number of employees for whom premiums were paid during the tax year for health insurance coverage under a qualifying arrangement for Form 8941, line 13 as the number of employees entered in this statement (including seasonal employees) with code 1 or 2 selected in the Type of Insurance column.

Force calculation

Use these fields to enter information if you already know the amounts you want to report on Form 8941. ExacTax limits the credit for the employee and wage limitations, as needed. However, ExacTax will not optimize the credit and will not complete the Credit for Small Employer Health Insurance Premium Optimization or the Credit for Small Employer Health Insurance Premium Worksheet (Pages 1 through 4).

Note: ExacTax ignores information entered in the field for the Employee and insurance information field if there is data in any of the Force calculation fields.


275

Investment Credit3468 (2016)


Energy Credit


Unit

FormDescription


Basis of property acquired after 12/31/08Basis of property acquired before 1/1/09

Acquired After 10/3/08Acquired Before 10/4/08

Basis of advanced energy project credit (Placed in service after February 17, 2009)

Small wind energy property:Basis of property

Combined heat and power system property:

Basis of geothermal heat pump systems

Basis of advanced coal‐based generation technology (section 48A(d)(3)(B)(iii))Qualifying gasification project credit:

Basis of other qualified investment in property

Qualifying advanced coal project credit:Basis of integrated gasification combined cycle property (section 48A(d)(3)(B)(i))Basis of advanced coal‐based generation technology (section 48A(d)(3)(B)(ii))

Basis of qualified investment in property

Qualified rehabilitation expenditures:

Kilowatt capacityBasis of property

Qualified microturbine property:Kilowatt capacityBasis of property

Qualified fuel cell property:Basis of property using solar illumination or solar energyBasis of property using geothermal energy


Pre‐1936 buildingsCertified historic structures

Basis of wind facility property (Construction of which begins in 2017)Basis of investment cr facility property (Other than wind facility prop and the construction of which began after 2016)

1

23

12 13

14 15

16 17

18 19

20 21 22 23

24 25 26 27

28 29

30 31

32 33

34 35

36 37

38 39

40 41

42 43

44 45

46 47

48 49

50 51

52 53

54 55

3468 80F



276

Form [80F] - Investment Credit

Overview

Use this form to enter information for the investment credit. Form 3468 is not required to print with Form 1065 or with Form 8865 unless there is information for Part I or Part III, line 11g or 11h.

Information from this form is separately reported by activity on the Partner’s Schedule K-1 Activity Worksheet. Therefore, enter data for this form in the activity folder (Income & Deductions, Farm, etc.) to which the investment credit is related. Use Form CrGen in the Credits folder to enter general investment credit information not related to an activity.

Notes

Forms 1065 and 8865 pass through only the basis of the rehabilitation, energy, and other investment credit property to the partners on Schedule K-1. The credit amounts are not calculated on Form 3468 for these returns.

ExacTax provides a client-specific option to specify the method of entering asset information: enter it either in the asset module or in the various depreciation forms. To use this form to enter asset information, choose File > Client Properties > Advanced Properties > Enter Asset Detail tab, and clear the Enter asset detail information checkbox to turn off the application default.


Use this section to complete Form 3468, Part I and Part III, line 11.

Qualified rehabilitation expenditures

ExacTax automatically transfers rehabilitation project information from the Form 51 to the fields attached to these fields when you use codes R and C in the Credit/Amount field. Additionally, use these fields to enter rehabilitation project information not entered in the asset module.

Energy Credit

Use this section to complete Form 3468, Part III, line 12.

Basis of property using geothermal energy

Enter code G in the Credit/Amount field in the asset module to transfer the basis of geothermal energy or solar energy property (acquired before January 1, 2006) placed in service during the year from the Form 51. If you did not enter assets in the asset module, enter the amount in this field.

Basis of property using solar illumination or solar energy

Enter code S in the Credit/Amount fields in the asset module to transfer the solar illumination or solar energy property (acquired after December 31, 2005) placed in service during the year from the Form 51. If you did not enter assets in the asset module, enter the amount in this field.


Use this section to complete Form 3468, Parts II and III for other than the rehabilitation and energy credits.


277

Basis of advanced energy project credit

Enter code P in the Credit/Amount field in the asset module to transfer the basis of advanced energy project property placed in service after February 17, 2009 from the Form 51. If you did not enter assets in the asset module, enter the amount in this field.


278

Annual Statement for Low-Income Housing Credit8609 (2016)

General and Compliance Information

Computation of Credit

Additions to qualified basisPart‐year adjustment for disposition or acquisition during tax yearSection 42(f)(3)(B) modificationPercentage for disallowed credit due to Federal grants (xxx.xxxxxx)Credit allowed for building for tax year (Force)Taxpayer's proportionate share of credit (Force)Adjustment for deferred first‐year credit

Begin credit period the first year after in service (section 42(f)(1))

Building type (1 = Newly constructed or existing building, 2 = Section 42(e) rehabilitation expenditures)

Building identification number

Type of low‐income housing property (A = Section 42(j)(5) pre‐2008, B = Other pre‐2008, C = Section 42(j)(5) post‐2007, D = Other post‐2007)

Date building placed in service

Eligible basis of building

Credit percentage (xxx.xxxx)


Explanation if eligible for credit and do not have original or copy of signed Form 8609Qualified low‐income housing project and meets section 42 requirements at end of year ( 1 = Yes, 2 = No)Decrease in the qualified basis of the building

Low‐income portion (xxx.xxxx)

Qualified basis of low‐income building (Force)Part‐year adjustment for disposition or acquisition during tax year


Form

Unit 1

23

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

8609 80H



279

Form [80H] - Annual Statement for Low-Income Housing Credit

Overview

Use this form to enter data for Forms 8609-A and 8586. Enter a separate unit for each building identification number.

General and Compliance Information

Use this section to complete Form 8609-A, Part I.

Type of low-income housing property

Enter the appropriate code to indicate how the property is treated under IRC section 42(j)(5) for Form 8586 and Schedules K and K-1. This field is mandatory. The available codes are listed in the table that follows and in the drop-down list.

Code Description Schedules K and K-1 Location Form 8586 Location

A Section 42(j)(5) pre-2008 Schedule K, line 15a and Schedule K-1, box 15, code A Form 8586, Part I

B Other pre-2008 Schedule K, line 15b and Schedule K-1, box 15, code B Form 8586, Part I

C Section 42(j)(5) post-2007 Schedule K, line 15a and Schedule K-1, box 15, code C Form 8586, Part II

D Other post-2007 Schedule K, line 15b and Schedule K-1, box 15, code D Form 8586, Part II

Computation of Credit

Use this section to complete Form 8609-A, Part II.

Date building placed in service

Enter the date the building was placed in service. ExacTax uses this date and the Begin credit period the first year after in service (section 42(f)(1)) field to determine the applicable credit period for calculating Form 8609-A, lines 3 and 5.

Begin credit period the first year after in service (section 42(f)(1))

Enter X if the credit period will begin the first year after the date the property was placed in service. ExacTax uses this field and the Date building placed in service field to determine the applicable credit period for calculating Form 8609-A, lines 3 and 5.

Additions to qualified basis

Enter the additions to qualified basis, if any. If you leave this field blank, ExacTax leaves Form 8609-A, lines 7 through 12 blank and enters the amount from line 6 on line 13.

Part-year adjustment for disposition or acquisition during tax year / Section 42(f)(3)(B) modification

Enter information for Form 8609-A in these fields if there are any additions to qualified basis. If you leave the Additions to qualified basis field blank, ExacTax ignores the information in these fields.


280

Recapture of Investment Credit4255 (2016)

Recapture Information

Recapture from increase in nonqualified nonrecourse financing (1065‐B only)Investment credit recapture information


Recapture of qualifying therapeutic discovery project grant

1

3 4

5

4255 80I



281

Form [80I] - Recapture of Investment Credit

Overview

Use this form to enter information for the recapture of investment credits.

Recapture Information

Use this section to calculate the recapture of investment credit.

Investment credit recapture information

ExacTax automatically transfers investment credit recapture information from the Form 51. Use the field to enter additional investment credit recapture information not entered in the asset module.

Recapture of qualifying therapeutic discovery project grant

Enter the amount of any qualifying therapeutic discovery project grant required to be recaptured under section 9023(e) of the Affordable Care Act (ACA) for Form 4255, line 19. ExacTax transfers the increase in tax from Form 4255 to Schedule K, line 20c and Schedule K-1, box 20, code H.


282

Other nontaxable use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name (35)

Form 4136 - Credit for Federal Tax Paid on Fuels4136

6P4136 01 10/25/16

Overflow # 2016

ExacTax, Inc.

81A

Type of Use

PARTNERSHIP 81A

Off-highway business use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [2]Use on a farm for farming purposes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3]

Nontaxable use of gasoline.183.183

Sales by registered ultimate vendors of undyed diesel fuelRegistration Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [34]

Gallons Bought#[§ 35] To whomdiesel fuelsold

TIN

04 = In a boat engaged in commercial fishing05 = In certain intercity and local buses07 = In a bus that transports students and school employees11 = Exclusive use by a qualified blood collector organization13 = Exclusive use by nonprofit educational organization14 = Exclusive use by state, political subdivision, or DC15 = In an aircraft or vehicle owned by an aircraft museum

01 = On a farm for farming purposes09 = In foreign trade10 = Certain helicopter and fixed-wing air ambulance uses11 = Exclusive use by a qualified blood collector organization13 = Exclusive use by nonprofit educational organization15 = In an aircraft or vehicle owned by an aircraft museum16 = In Military Aircraft

02 = Off-highway business use06 = In a qualified local bus07 = In a bus transporting students and employees of schools08 = Diesel fuel & kerosene not used as fuel in propulsion engine11 = Exclusive use by a qualified blood collector organization13 = Exclusive use by nonprofit educational organization14 = Exclusive use by state, political subdivision, or DC15 = In an aircraft or vehicle owned by an aircraft museum

Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [6].184[5].183[4]

Used in commercial aviation (Other than foreign trade) . . . . . . . . . . . . . . . . . . . .Nontaxable use of aviation gasoline

.15

Nontaxable use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nontaxable use of undyed diesel fuel

Use on a farm for farming purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243

Explanation of evidence of dyes (74) . . .

Use in trains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243Use in certain intercity and local buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

.244Nontaxable use of undyed kerosene (Other than kerosene used in aviation)

[20]Explanation of evidence of dyes (74) . . .

Kerosene taxed at $.244 (Other than foreign trade) . . . . . . . . . . . . . . . . . . . . . .Kerosene taxed at $.219 (Other than foreign trade) . . . . . . . . . . . . . . . . . . . . . . . .

Kerosene used in aviation.200.175

Use by a state or local government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use in certain intercity and local buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [38].17

.243Explanation of evidence of dyes (74) . . [§36]

†

**

†

†Type of use codes:

**

*

Other nontaxable use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nontaxable use taxed at $.244 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use on a farm for farming purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Use in certain intercity and local buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.243

.243

.17

.244

Rate Gallons

*

.193

.194

Nontaxable use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243[13]

Nontax use taxed at $.044. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .043Nontax use taxed at $.219 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218

Nontaxable use taxed at $.244 (Other than state or local govt) . . . . . . .243Nontaxable use taxed at $.219 (Other than foreign trade). . . . . . . . . . .218

LUST tax on aviation fuels used in foreign trade . . . . . . . . . . . . . . . . . . . . . . . . . [11].001

LUST tax on aviation fuels used in foreign trade . . . . . . . . . . . . . . . . . . . . . . . . . .001

[15][14]

[16]

[21][22][23][24][25][26]

[27][28]

[§19]

[§12]

* * [29][31]* * [32]

[30]

[33]

[37]

Special Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]

[10][8]

[7][9]

[17][18]


283

Form [81A] - Credit for Federal Tax Paid on Fuels - Pages 1 and 2

Overview

Use this form to enter information for Form 4136, Pages 1 and 2.

Fuels Credit Information

ExacTax prepares an informational schedule to attach to Schedule K-1, box 20, code C that details the federal fuel credit items. When you enter information in Form 4136, enter only whole gallons. ExacTax does not handle fractional amounts. When you specially allocate the fuel credit to partners, ExacTax allocates the number of gallons to each partner rather than a dollar amount. Consequently, you may use only the percentage or units method of allocation.

Specially allocate

When you specially allocate the fuel credit to partners, ExacTax allocates the number of gallons to each partner rather than a dollar amount. Consequently, you may use only the percentage or units method of allocation.


284

Credit for Federal Tax Paid on Fuels - Pages 2 and 34136-2 (2016)


Agri‐biodiesel mixtures

Biodiesel or renewable diesel mixture credit

Biodiesel mixtures (Other than agri‐biodiesel)Registration number

Commercial aviation taxed at $.219 (Other than foreign trade)

Nonexempt use in noncommercial aviation

Other nontaxable uses taxed at $.219

Sales by registered ultimate vendors of kerosene in aviationRegistration number

Other nontaxable uses taxed at $.244

.200

.175

.218

.243

.025

Statement of biodiesel reseller

.183 / .110

.243 / .17

.183 / .110

.183 / .109

.183 / .109

.243 / .169

.243 / .17

Commercial aviation taxed at $.244 (Other than foreign trade)

Renewable diesel mixtures

Nontaxable use of alternative fuelLiquefied petroleum gas (LPG)"P Series" fuelsCompressed natural gas (CNG)Liquefied hydrogenFischer‐Tropsch process liquid fuel from coal (Including peat)Liquid fuel derived from biomassLiquefied natural gas (LNG)

Use in certain intercity and local buses

Use by a state or local government

.17

To whom kerosene sold

.243Sales from a blocked pump

.243Explanation of evidence of dyes

Registration numberSales by registered ultimate vendors of undyed kerosene (Other than kerosene used in aviation)

.001LUST tax on aviation fuels used in foreign trade

Liquefied gas derived from biomass .183 / .110

1.001.001.00

Type of Use Rate Gallons

1

2

3

4

5

6

7

8

9

10

11 12

13 14

15

16

17

18

19

20

21 22

23 24

25 26

27 28

29 30

31 32

33 34

35 36

4136-2 81B



285

Form [81B] - Credit for Federal Tax Paid on Fuels - Pages 2 and 3

Overview



ExacTax prepares an informational schedule to attach to Schedule K-1, box 20, code C that details the federal fuel credit items. When you enter information in Form 4136-2, enter only whole gallons. ExacTax does not handle fractional amounts. When specially allocating the fuel credit to partners, ExacTax allocates the number of gallons to each partner rather than a dollar amount. Consequently, you may use only the percentage or units method of allocation.


286

Credit for Federal Tax Paid on Fuels - Pages 3 and 44136-3 (2016)


Explanation of diesel‐water fuel emulsion blending

.243

Nontaxable useExported

Diesel‐water fuel emulsion blending

Blender credit

Exported dyed fuels and exported gasoline blendstocksExported dyed diesel fuel and exported gasoline blendstocksExported dyed kerosene

Registration number

.046

.001

.218

.243

.197 / .124.198

.243

.001

Registered credit card issuers

Diesel fuel sold for state or local governmentKerosene sold for state or local governmentKerosene in aviation for state or local govt at $.219

Registration number

Nontaxable use of a diesel‐water fuel emulsion

Kerosene in aviation for state or local govt at $.244

Compressed natural gas (CNG)Liquefied hydrogen

Liquid fuel derived from biomassLiquefied natural gas (LNG)

.50

Registration numberAlternative fuel credit

Liquefied petroleum gas (LPG)"P Series" fuels

Compressed gas derived from biomassLiquefied gas derived from biomass

.50

.50

.50

.50

.50

.50

.50

.50

Fischer‐Tropsch process liquid fuel from coal (Including peat)

Type of Use Rate Gallons

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16 17

18

19

20

21

22

23

4136-3 81C



287

Form [81C] - Credit for Federal Tax Paid on Fuels - Pages 3 and 4

Overview



ExacTax prepares an informational schedule to attach to Schedule K-1, box 20, code C that details the federal fuel credit items. When you enter information in Form 4136-3, enter only whole gallons. ExacTax does not handle fractional amounts. When specially allocating the fuel credit to partners, ExacTax allocates the number of gallons to each partner rather than a dollar amount. Consequently, you may use only the percentage or units method of allocation.


288

General Information - Forms 3468, 6478, 6765, 8835, 8941CrGen (2016)

Form 3468 - Investment Credit




Form 8941 - Cr Small Employer Health Insurance Premiums

IRS CB registration number

See Screen 3468 for additional Form 3468 information

See Screen Cr for additional Form 6478 information

See Screen Cr‐2 for additional Form 6765 information



Lessor information if investment property acquired as a lesseeElection under section 47(d)(5) to take expenditures in year paidBuilding adjusted basis determined by person other than taxpayerFactor used for electrical capacity of combined heat and power system property (x.xxxx)

Elect alternate simplified methodFixed‐base percentage (xxx.xx)

Elect reduced credit under section 280C(c)Deductions and capitalized expenses reduced by credit (Enter only if you do not elect the reduced credit)

Qualifies for an exception to SHOP Marketplace requirement (For certain employers in IA and WI; see Form 8941 instr)

Marketplace identifier (If premiums paid through a SHOP Marketplace)

Employer identification number used to report employment taxes

Total grants, proceeds of tax‐exempt obligations, etc for this and all prior tax yearsTotal additions to the capital account for this and all prior tax years

Credit claimed in tax year 2014 (1 = Yes, 2 = No)

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CrGen 82



289

Form [82] - General Information - Forms 3468, 6478, 6765, 8835, 8941

Overview

Use this form to enter additional information that may be required to complete Forms 3468, 6478, 6765, 8835, and 8941.

Form 3468 – Investment Credit

Use this section to enter information for the Form3468 Investment Credit.

Building adjusted basis determined by person other than taxpayer

Use the field to enter information if the adjusted basis of the building is determined in whole or in part by reference to the adjusted basis of a person other than the taxpayer. See Regulations section 1.48-12(b)(2)(viii) for the information required in the statement.

Factor used for electrical capacity of combined heat and power system property

Enter the net factor for the electrical capacity for combined heat and power system property entered in Form 3468 and Form K13468.

Notes

If the electrical capacity is measured using megawatts, divide 15 by the megawatt capacity. Enter 1.0 if the capacity is 15 megawatts or less. You cannot claim this credit if the electrical capacity is more than 50 megawatts.

If the electrical capacity is measured using horsepower, divide 20,000 by the horsepower capacity. Enter 1.0 if the capacity is 20,000 horsepower or less. You cannot claim this credit if the electrical capacity is more than 67,000 horsepower.

Form 6478 – Biofuel Producer Credit

Use this section to enter information for Form 6478, Biofuel Producer Credit.

Form 6765 – Credit for Increasing Research Activities

Use this section to enter information for Form 6765, Credit for Increasing Research Activities.

Elect alternate simplified method

Enter X to calculate Form 6765 using Section B - Alternative Simplified Credit. If you do not enter X, ExacTax calculates Form 6765 using Section A - Regular Credit.

Elect reduced credit under section 280C(c)

Enter X to elect the reduced credit under IRC section 280C(c). If you enter X and Section A is completed, ExacTax multiplies the amount on Form 6765, Section A by 13 percent, instead of 20 percent. If Section B is completed, ExacTax multiplies the amount on Form 6765, Section B by 65 percent.

Form 8835 – Electricity, Refined and Indian Coal Credit

Use this section to enter information for Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit.


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Form 8941 – Cr Small Employer Health Insurance Premiums

Use this section to enter information for Form 8941, Credit for Small Employer Health Insurance Premiums.

Marketplace identifier / Qualifies for an exception to SHOP Marketplace requirement

Use these fields to enter the SHOP Marketplace Identifier or indicate that the partnership qualifies for an exception to the Small Business Health Options Program (SHOP (for certain employers in IA, WA, and WI)). ExacTax marks Yes on Form 8941.

Note: If the partnership does not have a Marketplace Identifier and they do not qualify for an exception to the SHOP requirement, ExacTax will not calculate a credit for small employer health insurance premiums for the partnership. The only credit that will calculate on Form 8941 would be a credit coming from a passthrough Schedule K-1.

Credit claimed in tax year 2014

Enter 1 for Yes or 2 for No, to indicate if a credit for small employer health insurance premiums was claimed for this partnership in the 2014 tax year.

Note: If Yes is selected, the partnership is not eligible to claim this credit in tax year 2016 or going forward. The only credit that will calculate on Form 8941 would be a credit coming from a passthrough Schedule K-1.


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Credits from CooperativesCrCO-OP (2016)

Credit Information

Unused investment credit, Part III (Form 3468)

Unused investment credit, Part II (Form 3468)

Credit for small employer health insurance premiums (Form 8941)

Credit for employer differential wage payments (Form 8932)

Biodiesel and renewable diesel fuels credit (Form 8864)

Indian employment credit (Form 8845)

Empowerment zone employment credit (Form 8844)

Biofuel producer credit (Form 6478)

Work opportunity credit (Form 5884)

Renewable electricity credit, refined coal, and Indian coal credit (Form 8835)


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CrCO-OP 83



292

Form [83] - Credits from Cooperatives

Overview

Use this form to enter current year credit amounts that have been passed through to the partnership from cooperative organizations.

Credit Information

Use this section to enter current year credits from cooperative organizations. The amounts entered on this section are added to the amounts passed through to the partnership from a passthrough Schedule K-1 and then transferred to the credit form to which it applies.


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Only use this form to enter text for a box that says "See Form Exp" or "Explain". Enter the form, unit (if applicable) and [§ #] zipbox that each explanation applies to. Continue the explanation on succeeding lines until complete. Begin a new explanation byentering a new form, unit and box.

45InstPY 1

1040

Universal Explanation

6IUNVEXP 01 11/01/16

Description (74)

Overflow 2016

Form Unit § Box

The explanation above is continued on the next page

73 This is an example of how to enter a general footnote. If your explanation runs outof space or you want multiple lines, then just continue on the next line.

You may enter explanations for more than one form on the same page.

ExacTax, Inc. 90ALL SYSTEMS

1

90Only use this form to enter text for a box that says "See Form Exp". Enter the form, unit (if applicable) and zip boxthat each explanation applies to. Continue the explanation on succeeding lines until complete. Begin a newexplanation by entering a new form, unit and box.

EXP


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Form [90] – Universal Explanation and General Footnotes

Overview Use Form 90 to enter text for general footnotes and for other text areas that do not have a designated space to enter the text on the input form. Text can not be entered for every zip box on every form. To enter text, the label of the zip box on the target form must read “Enter explanation” or “See Form [90]”. Each entry on Form 90 must specify the input form and zip number that the text is to be keyed in.

Universal Explanations Input Form 1, #63 General Footnotes: To create a general footnote, enter “1040” in the Form, ‘1’ in the Unit and ‘63’ in the Box. Enter text for as many lines as you need. A separate supporting schedule titled “General Footnotes” will be printed at the end of the return. This statement will also be included as part of the electronic file when e-filing is used.

All other explanations and text entries: If a zip box on an input form says “Enter explanation” or “See Form [90]” then Form [90] may be used to enter the text. For each line you must first enter the form name from the left-hand corner of the input form. This is not the ExacTax form number. Enter the Unit Number of the form, if applicable, and the zip box to be entered.

Collate each Form [90] behind the form that the text is to be entered on. For example, when creating a general footnote, collate the Form [90] directly behind Form [1].


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Change of Address - Business8822-B (2016)

Address Information

Old mailing address:

City, state, zip code

New mailing address:

City, state, zip code

New business location:

City, state, zip codeAddress and room or suite number

Print client phone number on Form 8822‐BTitle of signer

Change applies to employee plan returns

Treat mailing address on Screen 1065 as:1 = New mailing address

2 = Old mailing address

3 = New business location

4 = New mailing address and new business location

Form 8822‐B IRS Service Center (Based on old mailing address)

Enter the address and TMP on this screen only if it is different from information entered on Screen 1065 and Screen Contact

Foreign countryPostal codeProvince or state



Address and room or suite number

Address and room or suite number

SSN, ITIN or EIN

New responsible party:Treat tax matters partner (TMP) on Screen Contact as new responsible party

Name

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8822-B 90A



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Form [90A] - Change of Address - Business

Overview

Use this form to report a change of address.

Use this section to complete Form 8822-B.

Old mailing address

Enter the old mailing address if the mailing address is different from the mailing address entered in Form 1065. If the address entered in Form 1065 is the old mailing address, enter 2 in the Treat mailing address on Form 1065 as field and leave these fields blank.

New mailing address

Enter the new mailing address if the mailing address is different from the mailing address entered in Form 1065. If the address entered in Form 1065 is the new mailing address, enter 1 or 4 in the Treat mailing address on Form 1065 as field and leave these fields blank.

New business location

Enter the new business location if the location is different from the mailing address entered in Form 1065. If the address entered in Form 1065 is the new business location, enter 3 or 4 in the Treat mailing address on Form 1065 as field and leave these fields blank.

New responsible party: Name / New responsible party: SSN, ITIN, or EIN

Enter the new responsible partner name and identification number if they are different from the tax matters partner (TMP) information entered in Form Contact. If the TMP entered in Form Contact is the new responsible party, enter X in the Treat tax matters partner (TMP) on Form Contact as new responsible party field and leave these fields blank.

Form 8822-B IRS Service Center

ExacTax automatically enters the appropriate IRS Service Center where Form 8822-B should be mailed based on the old address entered in Form 1065 or 8822-B. Enter information only if you want to override the service center ExacTax determines. Use the drop-down list to see a list of IRS Service Centers.

If you do not enter an address in Form 1065 or Form 8822-B, and you do not enter a service center in Form 8822-B, ExacTax does not print an IRS Service Center address in the filing instructions.


297

Reportable Transaction Disclosure Statement8886 (2016)

Reportable Transaction InformationEnter each reportable transaction on a separate Screen 8886

Protective disclosure

Name of reportable transaction

Reportable transaction or tax shelter registration number (11 digits or "MA" followed by 7 digits)

Type of reportable transaction: (Mark all that apply)

ConfidentialContractual protectionLoss

Listed transaction

Promoters or soliciting parties to whom fees were paid with regard to the transactionFacts of the transaction:


Initial year participated in transactionInitial year filer (Separate filing of transaction required)

Participated through another entity

Type of tax benefit or consequence: (Mark all that apply)

Description of expected tax benefit or consequence

DeductionsCapital lossOrdinary lossExclusions from gross incomeNonrecognition of gainAdjustments to basis

Tax credits

DeferralAbsence of adjustments to basis

Other

Unit

Transaction of interestGuidance number for listed transaction or transaction of interest

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8886 90B



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Form [90B] - Reportable Transaction Disclosure Statement

Overview

Use this form to enter information necessary to complete Form 8886, Reportable Transaction Disclosure Statement to file with the tax return and separately with the IRS Office of Tax Shelter Analysis (OTSA). Enter each reportable transaction on a separate Form 8886.

Electronic Filing Notes

You may be required to file two copies of Form 8886. One copy of Form 8886 is attached to Form 1065 and the second copy (if required) is filed separately directly with the IRS. The copy filed with Form 1065 is included in the electronic file. The second copy is not electronically filed and must still be separately paper filed with the IRS.

Reportable Transaction Information

Use this section to enter information for Form 8886.


Enter the name, if any, by which the transaction is known or commonly referred. If no name exists, enter a short identifying description of the transaction that distinguishes the transaction from other reportable transactions. This field is mandatory.

Initial year filer

Enter X to indicate this is the first year the transaction is being reported to the IRS. When you mark this field, ExacTax generates Form 8886 and filing instructions for filing with the IRS OTSA.

Participated through another entity

If the transaction was invested through another entity, use the field to enter the type of entity, the entity's name and employer identification number, and the date the Schedule K-1 was received. ExacTax prints "None" on Form 8886 if no date is entered for the date the Schedule K-1 was received.


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Reportable Transaction - Entities Involved in Transaction8886-2 (2016)

Entity Involved in Transaction


Identifying number

City, state, zip codeAddressName

Type of entity: (Mark all that apply)

Description of involvement:

Name of reportable transactionUnit

Tax‐exemptForeignRelated

Postal codeForeign country

Province or state

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8886-2 90C



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Form [90C] - Reportable Transaction - Entities Involved in Transaction

Overview

Use this form to enter information necessary to complete Form 8886, Page 2, line 8. If more than two entities are involved in a reportable transaction, ExacTax lists the additional involved entities on the Entities and Individuals Involved in the Reportable Transaction worksheet.

Entity Involved in Transaction

Use this section to enter any tax-exempt, foreign, and/or related individuals or entities involved in a reportable transaction. Enter each individual or entity on a different form.

Unit

Select the unit of the reportable transaction entered in Form 8886 that relates to the individual or entity entered in this form. If you leave this field blank, ExacTax ignores information entered in this form when completing Form 8886.


ExacTax automatically enters the name of the reportable transaction based on the transaction selected in the Unit field.

Description of involvement

Enter a brief description of the involvement in the reportable transaction. For each foreign entity, identify the country of incorporation or existence. For each related entity, describe how they are related.


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Asset Acquisition Statement8594 (2016)

General Information

Original Statement of Assets Transferred

Supplemental Statement

Identifier (1 = Purchaser, 2 = Seller)

NameAddressCity, state, zip code

Date of saleTotal sales price (Force)

Aggregate FairMarket Value

Class IClass IIClass IIIClass IVClass VClass VI and VII

Purchaser and seller provided allocation of sales price (1 = Yes, 2 = No)If yes, aggregate fair market value for each class (1 = Yes, 2 = No)

Buyer and seller agreement entered into and maximum amount of consideration paid

Tax year the original Form 8594 was filedTax return form number original Form 8594 was filed with (If different from current tax form being filed)

Allocation of Sales PriceAs Previously Reported

Class IClass IIClass IIIClass IVClass VClass VI and VII

Reason for increase or decrease

Other party's information:

Complete only if amending original or previously filed statement due to increase or decrease in consideration

Identifying number


Sales PriceAllocation of

of Sales PriceRedetermined Allocation

Province or statePostal codeForeign country

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8594 90D



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Form [90D] - Asset Acquisition Statement

Overview

Use this form to report a transfer of assets between a purchaser and seller where goodwill or a going concern value is involved.

General Information

Use this section to complete Form 8594, Part I.

Identifier

Enter 1 for Purchaser or 2 for Seller. This field is mandatory to calculate Form 8594.

Total sales price (Force)

ExacTax automatically calculates the total sales price based on entries in this form. ExacTax uses the Redetermined Allocation of Sales Price fields in the Supplemental Statement section to determine the total sales price if amending an original or previously filed statement. Otherwise, ExacTax uses the Allocation of Sales Price fields in the Original Statement of Assets Transferred section to determine the total sales price. Enter an amount in this field to use an amount other than the calculated amount.

Original Statement of Assets Transferred

Use this section to complete Form 8594, Part II.

Aggregate Fair Market Value

Enter the aggregate fair market value of the assets transferred. If this is an originally filed statement, these amounts will transfer to Form 8594, Page 1, line 4 - Aggregate fair market value.

Allocation of Sales Price

Enter the allocation of sales price value of the assets transferred. If this is an originally filed statement, these amounts will transfer to Form 8594, Page 1, line 4 - Allocation of sales price. ExacTax uses the total of these fields as the Total sales price for Form 8594, Page 1, Part I, line 3.

Buyer and seller agreement entered into and maximum amount of consideration paid

Use the field to specify the type of agreement and consideration paid or to be paid under the agreement if the purchaser also purchases a license or covenant not to compete or enters into a lease agreement, employment contract, management contract, or similar arrangement with the seller.

Supplemental Statement

Use this section to complete Form 8594, Part III only if you are amending an original or previously filed statement.

Allocation of Sales Price As Previously Reported

Enter the allocation of sales price as previously reported on Part III. ExacTax calculates the increase or decrease based on the amounts entered in these fields and the Redetermined Allocation of Sales Price fields.


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Redetermined Allocation of Sales Price

Enter the redetermined allocation of sales price for Part III. ExacTax calculates the increase or decrease based on the amounts entered in these fields and the Allocation of Sales Price As Previously Reported fields. ExacTax uses the total of these fields as the Total sales price for Form 8594, Page 1, Part I, line 3.


304

Election to Have a Tax Year Other Than a Required Year8716 (2016)

Election Information


Tax year ending

Extension to file Form 8716 requestedExtended due date

Tax year resulting from election:Tax year beginning (Complete only if short year)(For filing instructions)

Purpose of election (A = Adopt, C = Change, R = Retain)

Title of signerBackup section 444 election

Form 8716 IRS Service Center

Telephone number (If different from Telephone number on Screen 1065)

Name (If different from tax matters partner)

Contact person:

Ending date of the tax year for the entity's last filed returnEnding date of the required tax year (If different from 12/31/16)

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8716 90E



305

Form [90E] - Election to Have a Tax Year Other Than a Required Year

Overview

Use this form to complete Form 8716 and its related filing instructions.

Electronic Filing Notes

You are required to file two copies of Form 8716. One copy of Form 8716 is attached to Form 1065 and the second copy is filed separately directly with the IRS. The copy filed with Form 1065 is included in the electronic file. The second copy is not electronically filed and must still be separately paper filed with the IRS.

Election Information

Use this section to complete Form 8716 and to calculate the due date for the Form 8716 filing instructions.

Ending date of the tax year for the entity's last filed return

Enter the ending date of the tax year for the entity's last filed return. If this election is for a new entity, enter the ending date of the tax year the new entity is adopting.

Ending date of the required tax year

If the entity does not file on a calendar-year basis, enter the ending date of the required tax year determined under IRC section 441(i), 706(b), or 1378. If you leave this field blank, ExacTax automatically enters December 31st of the current year as the required tax year.

Purpose of election

Enter A to adopt a tax year, C to change a tax year, or R to retain a tax year. This field is mandatory to calculate Form 8716.

Tax year resulting from election: Tax year beginning

If the election results in a short tax year, enter the date of the first tax year for which the election will be effective. If you leave this field blank, ExacTax assumes that the tax period resulting from the election is a full 12 months and calculates the tax year beginning as 12 months prior to the date entered in the Tax year ending field. ExacTax does not use this date on Form 8716, but does use this date to determine the due date in the filing instructions for Form 8716.

Note: If Form 8716 is not extended, ExacTax calculates the due date for Form 8716 as the earlier of the following:

The 15th day of the fifth month following the month of the tax year beginning, or

The due date (not including extensions) of the partnership tax return for the tax year resulting from the IRC section 444 election.

Backup section 444 election

Enter X if the partnership is electing a backup IRC section 444 election. If you enter X, ExacTax prints "Backup Election" at the top of Form 8716.

Title of signer

Enter the title of the person signing Form 8716 or select a previously entered title from the attached custom fieldview.


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ExacTax automatically determines the appropriate service center to which Form 8716 should be mailed based on the partnership address entered in Form 1065. Enter information in this field only if you want to override the calculated service center. Use the drop-down list to see a list of Form 8716 service centers.

If you do not enter an address in Form 1065 or select a service center in this field, ExacTax does not print a service center address in the filing instructions.


Use this section if the filing of Form 8716 was extended. ExacTax uses this information to complete the filing instructions for Form 8716.

Extension to file Form 8716 requested

Enter X if the partnership is requesting an extension of time to make an election on Form 8716. If you enter X, ExacTax prints "Filed Pursuant to Section 301.9100-2" at the top of Form 8716.

Note: ExacTax also enters the applicable due date in the Extended due date field. ExacTax assumes that the extended due date of Form 8716 is 12 months from the original calculated due date.

Extended due date

ExacTax calculates and enters an extended due date in this field when you mark the Extension to file Form 8716 requested field. ExacTax uses this information to determine the due date in the filing instructions for Form 8716.

ExacTax assumes that the extended due date of Form 8716 is 12 months from the original calculated due date. To change this date, enter a different date.


307

Required Payment or Refund8752 (2016)

Payment or Refund Information

Base year:

Number of months in deferral periodPayments made during deferral period

Payments made during base yearNet income for base yearNumber of months in short base year

Full refund requested due to terminating eventInitial tax year

Title of signerForm 8752 IRS Service Center

If activating back‐up section 444 election, enter date request denied (For filing instructions)

Amended return

Required payment for any prior tax year was more than $500

Deferral period:

Tax year ending (Enter base year ending in 2016)

Complete this screen for base years ending in 2016 only

Excess required payments over refunds received (for all prior years)

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8752 90F



308

Form [90F] - Required Payment or Refund

Overview

Use this form to calculate and report the payment required under IRC section 7519 or to obtain a refund of net prior-year payments.

Payment or Refund Information

Use this section to complete Form 8752 and its related filing instructions.

Initial tax year

Enter X if the tax year is the partnership's first tax year. If you enter X, ExacTax skips lines 1 through 10 and enters 0 (zero) for Form 8752, line 11, Required payment due.

Full refund requested due to terminating event

Enter X if the partnership is requesting a full refund if either the IRC section 444 election was terminated or the partnership was terminated. If you enter X, ExacTax completes only Form 8752, lines 10 through 12.

Base year: Tax year ending

Enter the tax year-end of the base year ending in 2016. This field is mandatory.

Base year: Number of months in short base year

If the base year (tax year preceding the applicable election year) was a short year, enter the number of months in that year. ExacTax uses the Number of months in short base year field, the Net income for base year field, and the Payments made during base year field to increase the base year net income as projected for a full 12 months. If you leave this field blank, ExacTax assumes the prior tax year was a full 12 months and uses the base year net income entered in the Net income for base year field for Form 8752, line 1.

Base year: Net income for base year

Enter the net income for the base year for Form 8752, line 1. If you leave the Number of months in short base year field blank, ExacTax transfers this amount directly to Form 8752. Otherwise, ExacTax uses the Number of months in short base year field, the Net income for base year field, and the Payments made during base year field to increase the base year net income as projected for a full 12 months.

Deferral period: Number of months in deferral period

Enter the number of months between the beginning of the elected tax year and the close of the first required tax year ending within such a year.

Required payment for any prior tax year was more than $500

Enter X if the required payment for any prior tax year was more than $500. If you enter X or if the current-year required payment is more than $500, ExacTax uses the current-year required payment in determining either the required payment due or the refund of net prior-year payments.

Excess required payments over refunds received (for all prior years)


309

Enter the excess required payments made over refunds received for all prior years. If this amount is greater than zero, ExacTax transfers the amount to Form 8752.

Amended return

Enter X if amending Form 8752. If you enter X, ExacTax prints "Amended Return" at the top of Form 8752.

If activating back-up section 444 election, enter date request denied

Enter the date the business purpose request was denied. ExacTax does not use this date on Form 8752 but does use this date to determine the due date in the filing instructions for Form 8752.

Note: ExacTax calculates the due date for Form 8752 as the later of the following:

May 15, 2017 for election years beginning in 2017, or

Sixty days from the date entered in this field.

Title of signer

Enter the title of the person signing Form 8752 or select a previously entered title from the custom fieldview.


ExacTax automatically determines the appropriate service center to which Form 8752 should be mailed based on the partnership address entered in Form 1065. Enter information in this field only if you want to override the calculated service center. Use the drop-down list to see a list of Form 8752 service centers.

If you do not enter an address in Form 1065 or select a service center in this field, ExacTax does not print a service center address in the filing instructions.


310

Application to Use LIFO Method970 (2016)

Statement of Election Under Section 472

LIFO Inventory Requirements

Specific Goods (Unit) Method

Dollar-Value Method

Filing amended return to make the election

Tax year ending LIFO inventory method will be usedList of inventory items for which LIFO will be used

Inventory not taken at cost regardless of market value

Adjustment required by section 472(d), and will not be included in income over a 3 year period

Goods for which the LIFO inventory method will not be used

Goods not treated as acquired at same cost of total divided by number on hand

Method used to figure COGS in closing inventories

If other method used, provide explanation

If other method used, describe and justify

If LIFO previously used, list tax years and why the method was discontinued

Name of applicant if different from filerIdentification number if different from filer

Inventory method(s) used in prior tax year for the goods covered by this electionIf LIFO used for other goods, describe the goods and the LIFO methods used

Were closing inventories valued at cost for preceding tax year? (1 = Yes, 2 = No)Beginning inventories not valued at cost for the current year

If credit statements issued to partners, describe the recipient, date of issuance and inventory methodused to determine income, profit, or loss

In the event of an IRS audit, does applicant agree to adjust the tax return to clearly reflect income?

Compare types of goods in the opening inventory with types of goods in the closing inventories

Describe method of defining "items"

If yes, explain and justifyDescription of pooling method used

Method used to determine current year cost of goods in closing inventories and value LIFO increments

If other method used, provide explanation

Detailed analysis of inventories as of the beginning and end of first tax year LIFO will be used

Method used in computing LIFO value of dollar‐value pools (Double‐extension, Link‐chain, Index)

Were any goods covered by this election at below‐market prices? (1 = Yes, 2 = No)

Note: This must be answered Yes to elect the LIFO inventory method (1 = Yes, 2 = No)

1 = Actual cost of goods most recently purchased or produced

3 = Actual cost of goods purchased or produced in order of acquisition

2 = Average cost of goods purchased or produced during the tax year

2 = Average cost of goods purchased or produced during the tax year

3 = Actual cost of goods purchased or produced in order of acquisition

1 = Actual cost of goods most recently purchased or produced

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970 90G



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Form [90G] - Application to Use LIFO Method

Overview

Use this form to complete Form 970, Application To Use LIFO Inventory Method.

Statement of Election Under Section 472

Use this section to complete Form 970, Part I.

Filing amended return to make the election

Enter X if you are amending the tax return to adopt the LIFO inventory method. ExacTax prints "Filed pursuant to section 301.9100-2" at the top of Form 970.

Tax year ending LIFO inventory method will be used

Enter the month, day, and year of the tax year-end for which the LIFO inventory method will first be used. This field is mandatory to calculate Form 970.

List of inventory items for which LIFO will be used

Use the field to enter a list of goods for which the LIFO inventory method will be used. Include only inventory items that are not already covered under a previous LIFO election.

Detailed analysis of inventories as of the beginning and end of first tax year LIFO will be used

Use the field to enter a detailed analysis of all of the inventories as of the beginning and end of the first tax year the LIFO method will be used and the beginning inventory of the preceding tax year. Also, include the ending inventory reported on the preceding tax year's tax return.

LIFO Inventory Requirements

Use this section to complete Form 970, Part II.

Specific Goods (Unit) Method

Use this section to complete Form 970, Part III.

Compare types of goods in the opening inventory with types of goods in the closing inventories

Use the field to attach a list of the types or categories of goods in opening inventory, a description of the goods included in each type or category, and the unit of measure for each type or category that will be compared under Regulations section 1.472-1 for Form 970, Part III, line 11.

Method used to figure COGS in closing inventories / If other method used, provide explanation

Enter 1 for Actual cost of goods most recently purchased or produced, 2 for Average cost of goods purchased or produced during the tax year, or 3 for Actual cost of goods purchased or produced in order of acquisition in the Method used to figure COGS in closing inventories field. If a different method is used, leave that field blank and use the field attached to the If other method used, provide explanation field.


312

Dollar-Value Method

Use this section to complete Form 970, Part IV.

Method used in computing LIFO value of dollar-value pools / If other method used, describe and justify

Select Double-extension, Link-chain, or Index from the drop-down list attached to the Method used in computing LIFO value of dollar-value pools field. If a different method is used, leave that field blank and use the field for the If other method used, describe and justify field.

Method used to determine current year cost of goods in closing inventories and value LIFO increments / If other method used, provide explanation

Enter 1 for Actual cost of goods most recently purchased or produced, 2 for Average cost of goods purchased or produced during the tax year, or 3 for Actual cost of goods purchased or produced in order of acquisition in the Method used to determine current year cost of goods in closing inventories and value LIFO increments field. If a different method is used, leave that field blank and use the field for the If other method used, provide explanation field.


313

Application to Use LIFO Method, Page 2970-2 (2016)

Inventory Price Index Computation Method

Other Information

Method used to compute LIFO value of each dollar‐value pool

Table from which to select Bureau of Labor Statistics price indexes

If other table of Producer Price Index is used, explain why it is more appropriate than Table 6Will the 10 percent method be used? (1 = Yes, 2 = No)Representative month for selecting BLS price indexes for each dollar‐value pool (If applicable)

Describe method of determining the cost of inventory itemsReceived IRS consent to change method of valuing inventories? (1 = Yes, 2 = No)

Additional information

2 = Link‐chain IPIC method

1 = Double‐extension IPIC method

1 = Table 3 of CPI

2 = Table 6 of PPI

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970-2 90H



314

Form [90H] - Application to Use LIFO Method, Page 2

Overview

Use this form to complete Form 970, Parts V and VI.

Inventory Price Index Computation Method

Use this section to complete Form 970, Part V.

Table from which to select Bureau of Labor Statistics price indexes / If other table of Producer Price Index is used, explain why it is more appropriate than Table 6

Enter 1 for Table 3 of the Consumer Price Index (CPI) Detailed Report or 2 for Table 6 of the Producer Price Index (PPI) Detailed Report in the Table from which to select Bureau of Labor Statistics price indexes field. If you use another table of the PPI Detailed Report, leave that field blank and use the field for the If other table of Producer Price Index is used, explain why it is more appropriate than Table 6 field.

Will the 10 percent method be used?

Enter 1 for Yes or 2 for No for Form 970, Part V, line 20. See Regulations section 1.472-8(e)(3)(iii)(C)(2) for a description of the 10 percent method.

Representative month for selecting BLS price indexes for each dollar-value pool / Additional information

Enter the representative month end for selecting Bureau of Labor Statistics (BLS) price indexes from the applicable Detailed Report for each dollar-value pool in the Representative month for selecting BLS price indexes for each dollar-value pool field. Use the field for the Additional information field if more information is required; see Regulations section 1.472-8(e)(3)(iii)(B)(3).

Other Information

Use this section to complete Form 970, Part VI.

Describe method of determining the cost of inventory items

Use the field to describe the method of determining the cost of inventory items. For example, standard cost method, actual invoice cost, joint product cost method, or retail inventory method.

Received IRS consent to change method of valuing inventories?

Enter 1 for Yes or 2 for No for Form 970, Part VI, line 23. If Form 3115, Application for Change in Accounting Method was filed and the IRS has given consent to change the method of valuing inventories, do not attach a copy of the approval letter. Retain the letter with the applicant's records.


315

Consent to Disclose and Use Tax Return InformationConsent (2016)

Specific Recipient and Use ConsentsSpecific Recipient and Use ConsentsOptions entered here will be used to produce a Consent Letter that will print with the tax return only. To select the Consent Letter to print

envelope fee at Setup > Office Configuration > eSignature tab. To print the Consent Letter with the Organizer, use Screen OrgCon in theOrganizer folder. Use Data Mining to print the Consent Letter with an Engagement Letter, by choosing Utilities > Data Mining. Thomson

for all clients, choose Setup > 1065 Partnership > Federal > Other Return Options > Consent tab. Enable eSignature for a nominal per

Date consent will expire (Blank = one year)

Recipient or use 2Recipient or use 3Recipient or use 4

Recipient or use 1

Consent received from taxpayer

Reuters recommends seeking counsel from your own legal advisor as to the specific requirements regarding IRC section 7216.

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Consent 90I



316

Form [90I] - Consent to Disclose and Use Tax Return Information

Overview

Use this form to enter client-specific information to prepare the Consent Letter with the tax return and to track if consent was received from the taxpayer.

To print the Consent Letter with the tax return for this client only or to enter specific recipients or uses for this client only, enter the recipients or uses in the Client-Specific Consents section in this form.

To print the Consent Letter and the Engagement Letter separately from the return, choose Utilities > Data Mining. In step 2, select Letters from the drop-down list in the Print selection group box, and then select the desired letters.

To print the Consent Letter with the Business Organizer for this client only or to enter specific recipients or uses for this client only, enter the recipients or uses in Form OrgCon.

Note: The Consent Letter can be signed by the taxpayer using eSignature.

IRC section 7216 requires preparers to receive consent from their clients to use or disclose their tax information for purposes other than preparing their tax return, and in certain limited situations, for purposes involving tax return preparation. This includes using "third party" return data entry services and offering bank products or services such as loans, business consulting, and compiling anonymous statistical data.

Thomson Reuters cannot provide tax preparers with legal advice about these provisions. We recommend that you seek counsel from your own legal advisor as to the specific consequences to, and requirements for, tax preparers regarding IRC section 7216 and related regulations. This would include seeking counsel prior to using any data mining searches for anything other than the preparation of tax returns to ensure you are in compliance with all applicable laws and regulations.

Specific Recipient and Use Consents

Use this section to prepare the Consent Letter printed with the tax return for this client only. Information in this section will not be used in the Consent Letter printed using the Business Organizer or Data Mining.

Date consent will expire

Enter the date the consent will expire. If you leave this field blank, ExacTax uses "One year from signature date" as the expiration date on the Consent Letter.

Recipient or use

Consent received from taxpayer

Enter X to track that consent was received from the client in connection with the recipients or uses entered in this form.


317

Power of Attorney and Tax Information AuthorizationPOA (2016)


Representative or Appointee Information



Power of Attorney or Tax Information Authorization (1 = Form 2848, 2 = Form 8821, 3 = Both)

Form 2848 and 8821 IRS Service Center

Representative #1: NameAddressCity, state, zip codeCAF number

Telephone number Fax numberDesignation Jurisdiction

New: Telephone Fax

PTIN

PTIN

JurisdictionDesignationFax numberTelephone number

CAF numberCity, state, zip codeAddress

Representative #2: Name

PTIN

JurisdictionDesignationFax numberTelephone number

CAF numberCity, state, zip codeAddress

Representative #3: Name

FaxTelephone

FaxTelephone

Email address (State use only)



License, bar or enrollment numberAddress

AddressNew:

New: Address

Representative information can be added under Setup > Office Configuration > Preparers

License, bar or enrollment number

License, bar or enrollment number

Send copies of notices to representative(s) (Form 2848 only) (Blank = 1st rep, 1 = 2nd rep, 2 = 1st and 2nd reps, 3 = No reps)

Send no notices to Form 8821 appointee (Form 8821 only)

License, bar or enrollment numberAddressNew:

Email address (State use only)Telephone Fax

Representative #4: NameAddressCity, state, zip codeCAF number

Telephone number Fax numberDesignation Jurisdiction

PTIN

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POA 91A



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Form [91A] - Power of Attorney and Tax Information Authorization

Overview

Use this form to enter information for the power of attorney (POA) and tax information authorization. ExacTax uses this information to complete Forms 2848 and 8821.


Use this section to enter general form information.

Power of Attorney or Tax Information Authorization

Enter 1 to calculate Form 2848, 2 to calculate Form 8821, or 3 to calculate both forms. If you leave this field blank, neither form prints.

Form 2848 and 8821 IRS Service Center

ExacTax automatically determines the appropriate IRS Service Center to which Form 2848 and 8821 should be mailed based on the partnership address entered in Form 1065. Enter information in this field only if you want to override the service center. Use the drop-down list to see a list of IRS Service Centers.

If you do not enter an address in Form 1065 or a service center in this field, ExacTax does not print a Form 2848 or 8821 Service Center address in the filing instructions.


Use this section to enter information about the representatives or appointees receiving the authorization.

Representative information

Enter each representative’s or appointee’s name, address, CAF number, and other information. If you select the preparer’s name using the drop-down list in the representative name fields, ExacTax completes these fields based on data entry in the Setup > Office Configuration > Preparers tab > Representative button.


319

Power of Attorney and Tax Information Authorization, Page 2POA-2 (2016)

Matters

Authorized Acts and Signature of Taxpayer

Matters


(Form 8821 Only)

Title of signerName of signer (If different from tax matters partner)

Specific acts not authorized (Form 2848 only)

Specific Tax MattersYears or PeriodsTax Form NumberDescription of Matter

NOT revoking prior power of attorney

Specific use not recorded on Centralized Authorization File (CAF)Additional acts authorized: (Form 2848 only)

Authorize disclosure to third parties

Sign a return (Use code 1, 2, or 3 if signing as a representative; use code 4, 5, or 6 if signing as an agent)

Substitute or add representatives

Other acts authorized

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POA-2 91B



320

Form [91B] - Power of Attorney and Tax Information Authorization, Page 2

Overview

Use this form to enter information for the power of attorney (POA) and tax information authorization. ExacTax uses this information to complete Forms 2848 and 8821.

Matters

Use this section to enter information about the matters to be listed on Forms 2848 and 8821.

Specific Tax Matters (Form 8821 Only)

Enter information about specific tax matters. These fields apply only to Form 8821.


Use this section to enter information about authorized acts and information for the taxpayer signature.

Additional acts authorized

Enter information for each category of additional acts authorized for Form 2848. Enter data for all fields that apply. These fields apply only to Form 2848.

Specific acts not authorized

Use the field to enter any specific deletions to the acts otherwise authorized. This field is applicable only to Form 2848.


321

Amended ReturnAmend (2016)

General Information

TEFRA/NonTEFRA Determination

Electing Large Partnership Amended Information

Explanation of Changes

IRS Service Center where original return was filed (if different)

City, state, zip codeAddressName

Name and address on original return (if different)

Transfer original information

Date of electing large partnership election (1065‐B only)

Partnership had 10 or fewer partners at all times during the tax year (Force) (1 = Yes, 2 = No)All partners US citizens, resident aliens, C corporations, or estates of deceased partnersTax year TEFRA partnership election was originally filedType of return filed (1 = Amended, 2 = Administrative Adjustment Request)

Substituted return treatment requested

Explanation of changes

Tax and other paymentsTax paid with Form 7004Tax paid with (or after) the filing of the original return

As OriginallyReported

Overpayment as shown on original return or as later adjusted

Amended or adjusted items

Title of signer

Reporting changes in allocation


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Amend 95A



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Form [95A] - Amended Return

Overview

Use this form to enter information for Form 1065X, Amended Return or Administrative Adjustment Request (AAR).

General Information

Use this section to enter general partnership information that is different from the amended return. For example, if the partnership's address has not changed since the original return was filed, leave the Address field blank. Also, use this section to enter the title of the person authorized to sign the amended return.

IRS Service Center where original return was filed

ExacTax automatically determines the appropriate IRS Service Center where the original return was filed based on the partnership address entered in Form Amend. Enter information in this field only if you want to override the service center. Use the drop-down list to view a list of IRS Service Centers.

TEFRA/NonTEFRA Determination

Use this section to enter information for the TEFRA/NonTEFRA Determination section on Form 1065X, Page 1.

Date of electing large partnership election

Enter the date the partnership made an election to be treated as an electing large partnership under the provisions of IRC section 775. ExacTax answers Yes to question A, enters the date in the field, and skips questions B through D. This field is applicable only to electing large partnerships (Form 1065-B).

Partnership had 10 or fewer partners at all times during the tax year (Force)

ExacTax automatically answers this question based on the number of partners entered in the Partner Information window in Partner Data Entry. To force an answer different from the calculated answer, enter 1 for Yes or 2 for No.

Note: A husband and wife are considered one partner for TEFRA purposes. If you entered husband and wife as separate partners in the Partner Information window in Partner Data Entry, you should review question B. ExacTax counts each separate partner entered in the Partner Information window.

All partners US citizens, resident aliens, C corporations, or estates of deceased partners

Mark the checkbox if all partners were U.S. citizens, resident aliens, C Corporations, or estates of deceased partners at all times during the partnership's tax year. ExacTax answers Yes to question C. If you leave this field blank, ExacTax defaults to No for question C.

Tax year TEFRA partnership election was originally filed

Enter the tax year that the election to be treated as a TEFRA partnership was originally filed with the partnership return. If you enter a tax year, ExacTax answers Yes to question D and enters the tax year in the field. If you leave this field blank, ExacTax defaults to No for question D.


323

Electing Large Partnership Amended Information

Use this section to enter the amended and originally reported amounts from Form 1065-B. ExacTax uses this information to complete Form 1065X, Part II, Amended or Administrative Adjustment Request (AAR) Items for ELPs and REMICs Only. This section is available only if the client is an electing large partnership (Form 1065-B).

Amended or adjusted items

Use the field to enter the specific items from the amended Form 1065-B that are different from the originally filed return.


Enter X in this field to transfer the originally reported information to the As Originally Reported fields in this section. ExacTax defines originally reported information as the information contained in the return the last time the return was printed or previewed. Before you enter X in this field, verify that the information on Form 1065-B is the information that should be used as the originally reported information.

Explanation of Changes

Use this section to complete Form 1065X, Part III, Explanation of Changes to Items in Part I and Part II.


324

Amended Return - Part IAmend-2 (2016)

Amended Information

ReportedAs Originally

Income (Loss)


Ordinary business income (loss)

Deductions

Net rental real estate income (loss)Other net rental income (loss)Guaranteed paymentsInterest incomeOrdinary dividendsQualified dividendsRoyaltiesNet short‐term capital gain (loss)Net long‐term capital gain (loss)Collectibles (28%) gain (loss)Unrecaptured section 1250 gainNet section 1231 gain (loss)Other income (loss)

Other deductionsSection 59(e) expendituresInvestment interest expenseContributionsSection 179 deduction

Gross farming or fishing incomeGross nonfarm income

Self‐Employment

Credits

Other rental creditsOther rental real estate creditsQualified rehabilitation expenditures (rental real estate)Low‐income housing credit (other)Low‐income housing credit (section 42(j)(5))

Net earnings (loss) from self‐employment

Other credits

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Amend-2 95B



325

Form [95B] - Amended Return - Part I

Overview

Use this form to enter information for Form 1065X, Part I.

Note: This form is not applicable to Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

Amended Information

Use this section to enter amounts from Form 1065 as originally reported. ExacTax automatically enters data for the Correct amount column of Form 1065X, Part I based on the current and active client data.


Enter X in this field to transfer the originally reported information to the As Originally Reported fields in this form and Form Amend-3. ExacTax defines originally reported information as the information contained in the return the last time the return was printed or previewed. Before you enter X in this field, verify that the information on Form 1065 is the information that should be used as the originally reported information.

As Originally Reported

Enter amounts, including 0 (zero), from Form 1065 as originally filed. ExacTax uses this information to complete Form 1065X, Part I, column (a), As originally reported on Schedule K or as previously adjusted. For any of the fields you leave blank, ExacTax automatically defaults the amount in column (a) to the amount in column (c).


326

Amended Return - Part I, Page 2Amend-3 (2016)

Amended Information

Passive category

Gross income sourced at partner levelGross income from all sources

Foreign TransactionsAs OriginallyReported

General categoryOther

Interest expenseOther

Foreign gross income sourced at partnership level:

Deductions allocated and apportioned at partner level:

OtherGeneral categoryPassive category

Deductions allocated and apportioned at partnership level:

Total foreign taxesReduction in taxes available for credit

Alternative Minimum Tax (AMT) ItemsPost‐1986 depreciation adjustmentAdjusted gain or lossDepletion (other than oil and gas)Oil, gas, and geothermal properties ‐ gross incomeOil, gas, and geothermal properties ‐ deductionsOther AMT items

Tax‐exempt interest incomeOther Information

Other tax‐exempt incomeNondeductible expenses

Distributions of other propertyDistributions of cash and marketable securities

Investment incomeInvestment expenses

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Amend-3 95C



327

Form [95C] - Amended Return - Part I, Page 2

Overview

Use this form to enter information for Form 1065X, Part I.

Notes

Mark the Transfer original information field in Form Amend-2 to transfer the originally reported information to the As Originally Reported fields in Form Amend-2 and this form.

This form is not applicable to Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

Amended Information

Use this section to enter amounts from Form 1065 as originally reported. ExacTax automatically enters data for the Correct amount column of Form 1065X, Part I based on the current and active client data.

As Originally Reported

Enter amounts, including 0 (zero), from Form 1065 as originally filed. ExacTax uses this information to complete Form 1065X, Part I, column (a), As originally reported on Schedule K or as previously adjusted. For any of the fields you leave blank, ExacTax automatically defaults the amount in column (a) to the amount in column (c).


328

Report of Foreign Bank Accounts114 (2016)

General and Filer Information

Other Information

Title of authorized representative (If different from "Partner" or "LLC Member")

Number of foreign accounts with financial interest, if 25 or more (Force) (Parts II and III are not completed)

Complete Parts II and III if 25 or more foreign accounts with financial interest

Explanation for late filed form (For late filing code Z, Other)

Suppress FinCEN Form 114 when total value of accounts is unknown

Signature date of authorized representativeFinCEN Form 114a signature status (For filing instructions) (Links to Utilities > Electronic Filing Status)

FinCEN Form 114 has already been filed (Suppresses creation of the e‐file)Authorized representative is separately filing FinCEN Form 114 (Suppresses creation of the e‐file)Filer information:

Other type of foreign identification (specify) (If not "Foreign TIN")Identification numberForeign country of issue

Mexico state (Use only when the partnership address in Screen 1065 is in Mexico)

Foreign identification: (If the partnership EIN has not been entered)

Amended or late filed form

Prior report BSA identifier (Confirmation number required to amend a previously filed form)

Number of foreign accounts with signature authority, if 25 or more (Force) (Part IV, lines 15 through 23 are not completed)

Enter financial account information for FinCEN Form 114 on Screen FrgnAcct

Country for Other Country ("OC")

(Blank = To sign, 1 = Paper signed and returned, 2 = eSign sent, 3 = eSign failed, 4 = eSign declined, 5 = eSigned)

Extended (For filing instructions)

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114 95R



329

Form [95R] - Report of Foreign Bank Accounts

Overview

Use this form to enter information for FinCEN Forms 114 and 114a.

Notes

Filing FinCEN Form 114 does not relieve you of the filing requirement to file Form 8938, Statement of Specified Foreign Financial Assets.

See also: FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

General and Filer Information

Use this section to complete general and filer information on FinCEN Forms 114 and 114a.

Note: ExacTax will mark FinCEN Form 114 to print and create the electronic file if any of the following are true:

The maximum value of any account is unknown and you leave the Suppress FinCEN Form 114 when total value of accounts is unknown field blank.

The maximum value of all accounts is known and the total value is greater than $10,000.

Number of foreign accounts with financial interest, if 25 or more (Force)

ExacTax automatically counts the number of Forms FrgnAcct reporting information for FinCEN Form 114 with code 2 or code 3 in the Information reported for financial account field to determine the number of accounts in which the partnership holds a financial interest. Enter a number in this field to force the number ExacTax calculates or if there are 25 or more accounts with financial interest and you did not enter the account information in Form FrgnAcct. If there are 25 or more accounts, ExacTax answers Yes to FinCEN Form 114, Part I, line 14a and enters the total number of accounts.

Note: If the number of foreign accounts with financial interest is 25 or more, ExacTax does not complete FinCEN Form 114, Part II and Part III. Use the Complete Parts II and III if 25 or more foreign accounts with financial interest field to complete FinCEN Form 114, Part II and Part III even when not required.

Number of foreign accounts with signature authority, if 25 or more (Force)

ExacTax automatically counts the number of Forms FrgnAcct reporting information for FinCEN Form 114 with code 4 in the Information reported for financial account field to determine the number of accounts in which the partnership has signature authority but no financial interest. Enter a number in this field to force the number ExacTax calculates. If there are 25 or more accounts, ExacTax answers Yes to FinCEN Form 114, Part I, line 14b and enters the total number of accounts.

Note: If the number of foreign accounts with signature authority but no financial interest is 25 or more, ExacTax does not complete FinCEN Form 114, Part IV, lines 15 through 23.

Complete Parts II and III if 25 or more foreign accounts with financial interest

Enter X to complete FinCEN Form 114, Part II and Part III when not required. By default, ExacTax does not complete FinCEN Form 114, Part II or Part III when the filer has a financial interest in 25 or more foreign accounts.


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Suppress FinCEN Form 114 when total value of accounts is unknown

If the maximum value for any account is unknown, ExacTax automatically marks FinCEN Form 114 to print and creates the electronic file. Enter X to suppress FinCEN Form 114.

Title of authorized representative

Enter the title of the authorized representative filing FinCEN Form 114. If you leave this field blank and the return is a partnership, ExacTax defaults to "Partner." If you leave this field blank and the return is a limited liability company, ExacTax defaults to "LLC Member."

Signature date of authorized representative

Enter the date FinCEN Form 114 is electronically signed by the authorized representative.

FinCEN Form 114a signature status

Enter 1 if FinCEN Form 114a was signed (other than using eSignature) and returned or leave this field blank if a signature is needed. ExacTax will automatically enter 2 (eSign sent), 3 (eSign failed), 4 (eSign declined), or 5 (eSigned) based on the current process status when using the eSignature feature. You will still use CS Connect to retrieve updated eSignature status and documents.

ExacTax uses this information to determine what information appears in the filing instructions. ExacTax automatically transfers the entry in this field to the Signature Document field in the Utilities > Electronic Filing Status dialog, and the option in the Electronic Filing Status dialog transfers to this field.

FinCEN Form 114 has already been filed

Enter X if you have already filed FinCEN Form 114. ExacTax suppresses the creation of the electronic file. ExacTax automatically marks this field when the FinCEN Form 114 electronic file is accepted.

Authorized representative is filing FinCEN Form 114

Enter X if the authorized representative is filing FinCEN Form 114 using the BSA E-Filing System. ExacTax suppresses the creation of the electronic file.

Foreign identification

Enter information in these fields to enter a foreign identification number for FinCEN Form 114, Part I, line 4. If you leave the Foreign identification: Identification number field blank, ExacTax displays the partnership's EIN as the taxpayer identification number in FinCEN Form 114, Part I, line 3.

Other Information

Use this section to indicate the reason FinCEN Form 114 is being filed late or to indicate that the form is being amended.

Prior report BSA identifier

Enter the prior report BSA identifier in this field when amending a previously filed FinCEN Form 114. This field is required when amending. This number was assigned to the return by the BSA when the original version of FinCEN Form 114 was electronically filed. ExacTax automatically completes this field when the FinCEN Form 114 electronic file is accepted.


331

Foreign Financial Accounts - Form 8938 and Form 114 (FBAR)FrgnAcct (2016)

Financial Accounts Information

Form 114 - Report of Foreign Bank Account (FBAR)

Form 8938 - Specified Foreign Financial Assets

Type of account (1 = Bank, 2 = Securities) (Form 114 only)

Other (specify) (Form 114 only)

Maximum value of accountAccount number or other designationFinancial institution where account is held

Country in which account is held (For foreign address)

Number of joint owners for this account

Last name or organization nameFirst name and middle initialAddressCity, state, zip code

Taxpayer identification number (SSN/EIN/ITIN)


Country (For foreign address)

Principal joint owner or account owner:

Information reported for financial account (2 = Part II, Owned separately, 3 = Part III, Owned jointly, 4 = Part IV, Authority but no financial interest)

Mailing addressCity, state, zip code

Information on account jointly held or where filer has no financial interest in the account:

Filer's title with this owner

Postal code (For foreign address)

Postal code (For foreign address)

Mexico state (Use only when address is in Mexico) (Form 114 only)

Mexico state (Use only when address is in Mexico)

Foreign identification number

Report account on Form(s)(1 = Both Forms 8938 and 114, 2 = Form 8938 only, 3 = Form 114 only, 4 = Do not report, retain account information for proforma purposes)

Deposit or custodial account (D = Deposit, C = Custodial) (Form 8938 only)

Enter general information for Forms 114 and 114a on Screen 114

Enter general information on Screen 8938 and foreign financial assets other than deposit and custodial accounts on Screen 8938‐2

Source of exchange rate used Foreign currency exchange rate used to convert to US dollars (xxxxxxx.xxxx)Foreign currency in which account is maintained

Was a foreign currency exchange rate used to convert the value into US dollars? (1 = Yes, 2 = No)No tax item reported in Part III with respect to this assetAccount closed during the tax yearAccount opened during the tax year

Province or state (For foreign address) (Form 8938 only)

Country for Other Country ("OC") (Form 114 only)

Country for Other Country ("OC") (Form 114 only)

Global Intermediary Identification Number (GIIN) (xxxxxx.xxxxx.xx.xxx) (Form 8938 only)

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FrgnAcct 95S



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Form [95S] - Foreign Financial Accounts - Form 8938 and Form 114 (FBAR)

Overview

Use this form to complete Form 8938, Part V and FinCEN Form 114, Pages 2, 3, and 4.

Notes

Use Form 114 to enter general information for FinCEN Form 114.

Use Form 8938 to enter general information for Form 8938 or Form 8938-2 to enter foreign financial assets other than deposit and custodial accounts.

See also: FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

Financial Accounts Information

Use this section to enter financial account information for Forms 8938 and FinCEN Form 114. Use a separate form for each foreign account.

Report account on Form(s)

Enter 1 for Both Forms 8938 and 114, 2 for Form 8938 only, 3 for Form 114 only, and 4 to retain the account information without reporting it on either Form 8938 or Form 114. If you leave this field blank, ExacTax will report the account on both Forms 8938 and FinCEN Form 114.

Maximum value of account

Enter the maximum value of the account during the calendar year.

Notes

If you leave this field blank, ExacTax marks the Maximum account value unknown field on FinCEN Form 114.

ExacTax does not complete FinCEN Form 114 if the maximum value of all accounts is known and the value is less than or equal to $10,000.

Deposit or custodial account

Enter D for Deposit or C for Custodial. This field is applicable only to Form 8938.

Type of account

Enter 1 for Bank or 2 for Securities. For all other types of accounts, leave this field blank and enter the other type of account description in the Other (specify) field. This field is applicable only to FinCEN Form 114.

Other (specify)

Enter the description of the other type of foreign account. ExacTax transfers information from this field to FinCEN Form 114 only if the Type of account field is blank. This field is applicable only to FinCEN Form 114.


333

Form 114 – Report of Foreign Bank Account (FBAR)

Use this section to enter financial account information for FinCEN Form 114.

Information reported for financial account

Enter 2 for Part II, Owned separately, 3 for Part III, Owned jointly, or 4 for Part IV, Authority but no financial interest.

Notes

ExacTax does not complete FinCEN Form 114, Part II or Part III when the filer has a financial interest in 25 or more foreign accounts (Types 2 and 3).

ExacTax does not complete FinCEN Form 114, Part IV, lines 15 through 23 when the filer has authority but no financial interest in 25 or more foreign accounts (Type 4).

Number of joint owners for this account

If you entered 3 in the Information reported for financial account field, enter the number of joint owners of the foreign account. ExacTax uses this information to complete FinCEN Form 114, Page 3, Part III, line 24.

Filer’s title with this owner

If you entered 4 in the Information reported for financial account field, enter the filer’s title with this foreign account. ExacTax uses this information to complete FinCEN Form 114, Page 4, Part IV, line 43.

Form 8938 – Specified Foreign Financial Assets

Use this section to enter information for Form 8938, Page 1, Part V.

Note: The first unit of Form FrgnAcct with information in this section will display on Form 8938, Page 1, Part V. Any additional units of Form FrgnAcct with information in this section will display on Form 8938, Page 3, Part V.

Foreign currency exchange rate used to convert to US dollars

Enter the currency exchange rate on the last day of the tax year. Use this rate even if the partnership sold or otherwise disposed of specified foreign financial assets before the last day of the tax year.


334

Statement of Specified Foreign Financial Assets8938 (2016)

General Information

Tax Items Attributable to Assets

Excepted Foreign Financial Assets

Foreign deposit and custodial accounts:InterestDividendsRoyaltiesOther incomeGains (losses)DeductionsCredits

CreditsDeductionsGains (losses)Other incomeRoyaltiesDividendsInterest

Other foreign assets:

Amount Form/Line Schedule/Line

Specified foreign financial assets reported on: (Indicate the number of forms filed)

Form 3520Form 3520‐AForm 5471Form 8621Form 8865

Specified individual(s) who closely holds the partnership (In addition to partners selected on the Federal tab in View > Partner Information)

Suppress printing of Form 8938 (Retain information for proforma purposes)

1 2 3

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

19 20 21

22 23 24

25 26 27

28 29 30

31 32 33

34 35 36

37 38 39

40 41 42

43

44

45

46

47

48

49

8938 95T



335

Form [95T] - Statement of Specified Foreign Financial Assets

Overview

Use this form to enter information for Form 8938, Page 1, Parts III and IV.

Notes

Use Form FrgnAcct to enter information for Form 8938, Part V.

Use Form 8938-2 to enter information for Form 8938, Part VI.

Filing Form 8938 does not relieve you of the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

General Information

Use this section to suppress the printing of Form 8938 and to enter the name and taxpayer identification number for specified individuals who closely hold the partnership for Form 8938, Page 1. Individuals entered in this section are added to partners with the Specified individual who closely holds the partnership field marked in the Federal tab in the Partner Information window in Partner Data Entry.

Suppress printing of Form 8938

Enter X To prevent the printing of Form 8938 if the partnership does not meet the reporting requirements. ExacTax calculates and prints Form 8938 when information is proforma'd or entered on Form 8938, Form 8938-2, or Form FrgnAcct.

Tax Items Attributable to Assets

Use this section to enter the amount reported and the form or schedule and line number where various tax items are reported on the return for Form 8938, Page 1, Part III, Summary of Tax Items Attributable to Specified Foreign Financial Assets.

Excepted Foreign Financial Assets

Use this section to enter the number of Forms 3520, 3520-A, 5471, 8621, and 8865 that the partnership filed that reported foreign financial assets for Form 8938, Page 1, Part IV, Excepted Specified Foreign Financial Assets.

Notes

Foreign financial assets reported on these forms do not need to be included on Form 8938.

For the exception to apply, you must mark the Check if any excepted specified foreign assets are reported on this form field(s) on Forms 3520, 3520-A, 5471, 8621, and 8865.


336

Statement of Specified Foreign Financial Assets, Page 28938-2 (2016)

Other Foreign Assets

Description of assetIdentifying number or other designationDate acquired during the tax yearDate disposed during the tax year

Maximum value of asset during the tax yearNo tax item reported in Part III with respect to this asset

Source of exchange rate used Foreign currency exchange rate used to convert to US dollars (xxxxxxx.xxxx)Foreign currency in which account is maintained

Was a foreign currency exchange rate used to convert the value into US dollars? (1 = Yes, 2 = No)

Stock or interest in a foreign entity:Name

Type of entity (P = Partnership, C = Corporation, T = Trust, E = Estate)Address

Issuer or counterparty information

City, state, zip codeProvince or statePostal codeForeign country

Use this screen to enter information for Form 8938, Part VI; see Screen FrgnAcct to enter information for Form 8938, Part V

Global Intermediary Identification Number (GIIN) (xxxxxx.xxxxx.xx.xxx)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15 16 17

18

19

20 21

22

8938-2 95U



337

Form [95U] - Statement of Specified Foreign Financial Assets, Page 2

Overview

Use this form to enter information for Form 8938, Part VI.

Notes

Use Form FrgnAcct to enter information for Form 8938, Part V.

Filing Form 8938 does not relieve you of the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

Other Foreign Assets

Use this section to enter information for Form 8938, Part VI.

Notes

The first unit of Form 8938 will display on Form 8938, Page 2, Part VI. Any additional units of Form 8938 will display on Form 8938, Page 3, Part VI.

Do not include assets reported on Form 3520, 3520-A, 5471, 8621, or 8865 in this section. Use the fields in the Excepted Foreign Financial Assets section in Form 8938 to indicate how many of these forms were filed.

Foreign currency exchange rate used to convert to US dollars

Enter the currency exchange rate on the last day of the tax year. Use this rate even if the partnership sold or otherwise disposed of specified foreign financial assets before the last day of the tax year.

Issuer or counterparty information

Use the field to enter the issuer or counter-party information for Form 8938, Page 2, Part VI, line 8 if the asset is not stock of a foreign entity or an interest in a foreign entity.


338

Title (20) . . . . . . . . . . . . . . . . . . . . . . . . . .

Disregarded Entity Information

If other: (11) . . . . . . . . . . . . . . . . . . . . . .

CAGenL CA General Information (LLC)

6PCAGENL 01 11/03/16 PARTNERSHIP

Initial return (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Secretary of State file number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date business started (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)

Final return (If different from federal) (Also marks K-1’s as final) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Amended return (If different from federal) (Also marks K-1’s as amended) . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Name (48) . . . . . . . . . . .

Address (35) . . . . . . . . .

City (20) . . . . . . . . . . . . .

[20]

State Zip

Federal taxpayer identification number

Secretary of State file number (12) . . . . . .

Return filed with FTB by sole owner . . . .

CA1

Overflow # 2016

ExacTax, Inc.

CA1

Voucher Information

Name control (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [38]

[1]CA corporation number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxing authority may discuss return with preparer (If different from federal) . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

(1 = Form 540, 2 = Form 541, 3 = Form 100, 4 = Form 100S, 5 = 565, 6 = 568)

[2]

[7][8][9]

[10]

[12][13]

[21]

[22] [23]

[30]

[35][36]

Superseding return (If different from federal) (Also marks K-1’s as superseding) . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

[24]

[37]

CALetter Client Instructions

Partnership/LLC electronic funds transfer and internet filing instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [17]

Private delivery service mailing address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . [20]Other Client Document Information

Electronic Funds Transfer Payments

Explanation of amended return(75) [§ 11]

[14]Officer's email address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[15]Form 3832 not required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[16]Online account view access authorized reprensentative . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Firm, 2 = Preparer)

[17]Signer name (Defaults to TMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Signer title (Defaults to TMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General Footnote (75) [§ 19][18]

[31]CA Corp number . . . . . . . . . . . . . . . . . . .

[29]

Foreign partner or member annual withholding return EFT filing instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . [19]

Complete sole owner information only if the LLC has elected to be disregarded

LLC temporary number assigned by FTB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Reason for no Secretary of State file number (1 = Foreign non- US, 2 = Applied for). . . . . . . . . . . . . . . . . . . . . . . . ..

No California filing requirement, but is filing to report Form 3840 transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[3][4]

[6]Other reason for no Secretary of State file number. . . . . . . . . . . . . . . . . . . . . . . . . . [5]

Province or state. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [25]Postal code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[26]Foreign code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27] [28]

LLC temporary number assigned by FTB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [32]Reason for no Secretary of State file number (1 = Foreign Non-US, 2 = Applied for). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [33]Other reason for no Secretary of State file number. . . . . . . . . . . . . . . . . . . . [34]


339

Form [CA1A]- California LLC Return

Overview

Use this form for limited liability companies to complete the general information and to enter disregarded entity information. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form. Input form fields without fields attached are provided to allow the user to enter a state-only amount.

Note: To access this input form, choose File > Client Properties > California tab and choose the button for Limited Liability Company.

General Information

Use this section to complete Form 568, Page 1.

No California filing requirement, but is filing to report Form 3840 transactions

Enter X to indicate the limited liability company has no California filing requirement except to report Form 3840 transactions that have not yet been disposed.

When the limited liability company disposes of assets reported on Form 3840, it has to file Form 565 or 568 for that year. Clear this checkbox in the year of filing.

Initial return

Enter X to indicate that the return is initial.

Note: ExacTax assumes the state return is initial if the federal return is marked as initial.

Final return

If the federal return is final and this field is blank, the California return and Schedules K-1 (568) are marked as final. If the federal return is not final, but you wish to mark the California return as final, enter 1. If you do not wish to mark the California return as final when the federal return is final, enter 2.

Amended return

If the federal return is amended and this field is blank, the California return and Schedules K-1 (568) are also marked as amended. If the federal return is not amended, but you wish to amend the California return, enter 1. If you do not wish to amend the California return when amending the federal return, enter 2 and the California return will not be marked as amended.

Superseding return

If the federal return is superseded and this field is blank, the California return and Schedules K-1 (568) are also marked as superseded. If the federal return is not superseded, but you wish to supersede the California return, enter 1. If you do not wish to supersede the California return when superseding the federal return, enter 2 and the California return will not be marked as superseded.

Form 3832 not required

Enter X to suppress the printing of Form 3832.


340

Online account view access authorized representative

Any code entered here causes Form 743 to print. Enter 1 to designate the firm as the representative. Enter 2 to designate the preparer as the representative.

General footnote

Use the field to enter any miscellaneous information that needs to be conveyed with the return. The general footnote appears as a separate item in each collation.

Disregarded Entity Information

Use this section to enter information for a limited liability company that has elected to be disregarded. If information is entered in these fields, only Form 568, Pages 1, 2, 3, and 7 prints.

Voucher Information

Use this section to override the calculated values on Forms 3522, 3536, 3537, 540-ES, 3519, and 3588.

Name control (Force)

Use this field to change the calculated value of the first four letters of the entity’s name on the estimate, extension, or e-file payment voucher.


Use this section to select if the entity needs filing instructions for electronic funds transfers or Internet payments.

Other Client Document Information

Use this section to select if the entity uses a private delivery service.


341

CAOthInL California Other Information

6PCAOTHL 01 11/03/16 PARTNERSHIP

Investment partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Any credits or credit carryovers attributable to the disregarded entity . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Did LLC or subsidiaries have change in control/majority ownership in CA real property? . . . . . . . (1 = Yes, 2 = No)

Did LLC or subsidiaries control/majority ownership of other entity that owns/leases CA property? (1 = Yes, 2 = No)

If owned/leased CA real property, has more than 50% of interest transfered since 3/1/1975? . . . .(1 = Yes, 2 = No)

[§ 15] List name, address and FEIN of trust or grantor trust in which this LLC has beneficial interest

Is LLC direct owner of entity that filed federal Schedule M-3? . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

EINName (36)# Address (35)

Does the LLC have any foreign nonresident members? (If different from federal) . . . . . . . . . . . . . . (1 = Yes, 2 = No)

[§ 16] List name and FEIN of any disregarded entities that this LLC owns a membership in for tax purposesEINName (36)#

Do not complete Schs L, M-1 and M-2? (1 = Yes, 2 = No, 3 = Yes-Print Schs L, M-1 & M-2, 4 = Yes-Print only Sch K-1, Item I)

Was LLC registered in CA without earning any income sourced in state during tax year?. . . . . . . (1 = Yes, 2 = No)

[2]

Was there a distribution of property or transfer of interest? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Are any members also LLCs or partnerships? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Is this LLC under audit by the IRS for the current or prior year? . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Is any member a trust for the benefit of any person related by blood/marriage? . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Is any member related by blood or marriage to any other member? . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

ZipStCity

[1]

[3][4][5][6][7][8]

[12]

[9][10]

[17][18]

[14]

Installment sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IRC section 1031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[20]

IRC section 1033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[21]

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[22]

Partnership reporting previously deferred income from:

CA1B

Overflow # 2016

ExacTax, Inc.

CA1B

[§ 19] List income source and year of asset disposition for deferring any incomeYear of dispositionPreviously deferred income source (36)#

[23]

Income from CA less than total income from all sources? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [13]

SOS CA Source Income

[§ 11] List name and FEIN of other LLC or partnership in which this LLC is a memberEINName (36)# SOS CA Source

Yes or No Profit % Loss %

Previously operated outside California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [25]

[§ 24] List prior FEINs, different business names and entity typesFEINPrior Name (36)# Entity

Code

*Entity Codes:(1 = Individual, 2 = S Corp, 3 = Estate/Trust, 4 = C Corp, 5 = General Partnership, 6 = Limited Partnership, 7 = Limited Liability Partnership8 = Limited Liability Company, 9 = IRA/Keogh/SEP, 10 = Exempt Organization, 11 = Disregarded Entity, 12 = Other)

*


342

Form [CA1B] - California Other Information

Overview

Use this form to complete the questions on Form 568, Page 1, 2, and 3.

Other Information

Use this section to enter other information.

Do not complete Schedules L, M-1 and M-2

The code entered here is used to determine the completion of Schedules L, M-1, M-2, Item G on Form 568, Page 1, and Item I, Analysis of member’s capital account on Schedule K-1 (568). If this field is blank, ExacTax defaults to the code entered in the Meet all requirements for Question 6 field in federal Form OthInfo. See the fieldview for a list of available codes.

Code Description Result

1 Yes Does not complete Schedules L, M-1, M-2, Item G on Form 568, Page 1, and Item I on Schedule K-1(568)

2 No Completes Schedules L, M-1, M-2, Item G on Form 568, Page 1, and Item I on Schedule K-1(568)

3 Yes - Print Schedules L, M-1 and M-2

Completes Schedules L, M-1, M-2, Item G on Form 568, Page 1

4 Yes - Print only Schedule K-1, Item I

Completes Item I on Schedule K-1(568)


343

[§ 16] List name, address and FEIN of trust or grantor trust in which this partnership has beneficial interest

[§ 7] List the name and FEIN of each partnership or LLC which this partnership is also a partnerEINName (36)#

Is any partner related by blood or marriage to any other member? . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Is any partner a trust for the benefit of any person related by blood/marriage? . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Meet all the requirements for Question O? (1 = Yes, 2 = No, 3 = Yes-Print Schs L, M-1 & M-2, 4 = Yes-Print only Sch K-1, Item J)

Was there a distribution of property or transfer of interest? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Investment partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

Did partnership or subsidiaries have change in control/majority ownership in CA real property? . .(1 = Yes, 2 = No)

Did partnership control/majority ownership of other entity that owns/leases CA property? . . . . . .If owned/leased CA real property, has more than 50% of interest transfered since 3/1/1975? . . . (1 = Yes, 2 = No)

(1 = Yes, 2 = No)

Is partnership direct owner of entity that filed federal Schedule M-3? . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

FEINName (36)# Address (20)

Does the partnership have any foreign nonresident partners? (If different from federal ). . . . . . . . . . .(1 = Yes, 2 = No)

Are any partners also partnerships or LLCs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Is this partnership under audit by the IRS for the current or prior year? . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

[§ 17] List disregarded entity names and identification numbersEINName (36)#

[2][3][4][5]

[8][9]

[10][11][12][13]

Zip (5)StCity (10)

[14]

[1]Type of entity filing the return (If different from federal) (1 = General Partnership, 2 = Limited Partnership required to payannual tax 3 = Limited Partnership LLC or other NOT required to pay annual tax, 4 = REMIC, 5 = LLP)

[6]

Other (specify)

[15]

[19]Installment sale . . . . . . . .. . . . . . . . . . . . . [20]IRC section 1031 . . . . . .. . . . . . . . . . . . . . . . . .[21]IRC section 1033 . . . . . . . . . . . . . . . . . . . [22]Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA General Information (LLC must use Form {CA1})CAGenP

6PCAGENP 01 11/03/16 PARTNERSHIP

Initial return (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[1]

[3]

Secretary of State file number (System enters “GP” prefix for general partnerships) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date business started (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

Final return (If different from federal) (Also marks K-1’s as final) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Amended return (If different from federal) (Also marks K-1’s as amended) . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

CA2

Overflow # 2016

ExacTax, Inc.

CA2

Taxing authority may discuss return with preparer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)

[4][5][6]

Superseding return (If different from federal) (Also marks K-1’s as superseding) . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No) [8][9]

[15]Name control (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CALetter Client InstructionsPartnership/LLC electronic funds transfer and internet filing instructions . . . . . . . . . . . . . [17]

Other Client Document Infomation: Private delivery service mailing address . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]

Electronic FundsTransfer Payments:

Explanation of amended return(75) [§ 7]

General partner's email address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[11]Online account view access authorized representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Firm, 2 = Preparer)

[12]Signer name (Defaults to TMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Signer title (Defaults to TMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General Footnote (75) [§ 14][13]

CAOthInP Client Instructions

[§ 18] List income source and year of asset disposition for deferring incomeYear of asset dispositionPreviously deferred income source (36)#

SOS CA Source IncYes or No Profit % Loss %

CA Source IncSOS

Foreign partner or member annual withholding return EFT filing instructions. . . . . . . . . . . [19]

Previously operated outside California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [24]

[§ 23] List prior FEINs, different business names and entity typesFEINPrior Name (36)# Entity

Code

*Entity Codes: (1 = Individual, 2 = S Corp, 3 = Estate/Trust, 4 = C Corp, 5 = General Partnership, 6 = Limited Partnership, 7 = Limited Liability Partnership8 = Limited Liability Company, 9 = IRA/Keogh/SEP, 10 = Exempt Organization, 11 = Disregarded Entity, 12 = Other)

*

Voucher Information

No California filing requirement, but is filing to report Form 3840 transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[2]

[10]


344

Form [CA2] - California Partnership Return

Overview

Use this form for partnerships to complete the general information on Form 565, Page 1. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form. Input form fields without fields attached are provided to allow the user to enter a state-only amount.

General Information

Use this section to complete Form 565, Page 1.

No California filing requirement, but is filing to report Form 3840 transactions

Enter X to indicate the partnership has no California filing requirement except to report Form 3840 transactions that have not yet been disposed.

When the partnership disposes of assets reported on Form 3840, it must file Form 565 or 568 for that year. Clear this checkbox in the year of filing.

Initial return

Enter X to indicate that the return is initial.

Note: ExacTax assumes the state return is initial if the federal return is marked as initial.

Final return

If the federal return is final and this field is blank, the California return and Schedules K-1 (565) are marked as final. If the federal return is not final, but you wish to mark the California return as final, enter 1. If you do not wish to mark the California return as final when the federal return is final, enter 2.

Amended return

If the federal return is amended and this field is blank, the California return and Schedules K-1 (565) are also marked as amended. If the federal return is not amended, but you wish to amend the California return, enter 1. If you do not wish to amend the California return when amending the federal return, enter 2 and the California return will not be marked as amended.

Superseding return

If the federal return is superseded and this field is blank, the California return and Schedules K-1 (565) are also marked as superseded. If the federal return is not superseded but you wish to supersede the California return, enter 1. If you do not wish to supersede the California return when superseding the federal return, enter 2 and the California return will not be marked as superseded.

Online account view access authorized representative

Any code entered here causes Form 743 to print. Enter 1 to designate the firm as the representative. Enter 2 to designate the preparer as the representative.

General footnote


345

Use the field to enter any miscellaneous information that needs to be conveyed with the return. The general footnote appears as a separate item in each collation.

Voucher Information

Use this section to override the calculated values on Forms 3538, 540-ES, 3519, and 3587.

Name control (Force)

Use this field to change the calculated value of the first four letters of the entity’s name on the estimate, extension, or e-file payment voucher.


Use this section to select if the entity needs filing instructions for electronic funds transfers or Internet payments.

Other Client Document Information

Use this section to select if the entity uses a private delivery service.

Other Information

Use this section to enter other information.

Meet all the requirements for Question P

The code entered here is used to answer Question P on Form 565, Page 2 and determine the completion of Schedules L, M-1, M-2, Item G on Form 565, Page 1 and Item J, Analysis of partner’s capital account on Schedule K-1 (565). If this field is blank, ExacTax defaults to the code entered in the Meet all requirements for Question 6 field in federal Form OthInfo. Enter a code from the following table or see the fieldview for a list of available options.

Code Description Result

1 Yes Answers Yes to Question P on Form 565, Page 2 and does not complete Schedules L, M-1, M-2, Item G on Form 565, Page 1, and Item J on Schedule K-1(565)

2 No Answers No to Question P on Form 565, Page 2 and completes Schedules L, M-1, M-2, Item G on Form 565, Page 1, and Item J on Schedule K-1(565)

3 Yes - Print Schedules L, M-1 and M-2

Answers Yes to Question P on Form 565, Page 2 and completes Schedules L, M-1, M-2, Item G on Form 565, Page 1, and Item J on Schedule K-1(565)

4 Yes - Print only Schedule K-1, Item J

Answers Yes to Question P on Form 565, Page 2 and completes Item J on Schedule K-1(565)


346

California Payment, Extension, Use Tax, Penalty & Interest

CA3A

Penalties and Interest

Use Tax

CAPPmt

6PCA2 01 11/03/16 PARTNERSHIP

2016

ExacTax, Inc.

Amount paid with extension (Form 565, Line 26) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[2]

Extended due date (For filing instructions and penalties and interest calculations) . . . . . . . . . . . . . . . . . . . . . . (mm/dd/yy)

Suppress penalties on return:

Balance due on extension (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension

Date return filed (If different from return due date) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)

Late interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Failure to file . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Failure to pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA3A

[4]

[3]

[5]

[6]

[7][8][9]

Real estate or other withholding (Form 565, Line 25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]


347

Form [CA3A] - California Payment, Extension, Use Tax, Penalty & Interest

Overview

Use this form to complete Form 565, Form 3538, to extend the due date of the return, and to calculate penalties and interest.

Payments

Use this section to enter payments.

Amount paid with extension

Each time you print the extension (via the File > Print Extensions option), ExacTax:

calculates the extension payment amount and enters it in this field, and

prints this amount on the main return, not on the extension.

Extension

Use this section to extend the due date and to complete Form 3538.

Note: ExacTax also enters the applicable due date in the Extended due date field.

Extended due date

If you have printed an extension by choosing File > Print Extensions, the extended due date automatically appears in this field. When this field is completed and the Date return filed field is blank, ExacTax uses the date in this field to calculate penalties and interest. The extended due date also is reflected in the filing instructions.

Balance due on extension (Force)

If you enter an amount here, ExacTax enters the amount on Form 3538, completes the Extended due date field, and displays the amount in the Amount paid with extension field.

Use Tax

Use this section to enter the amount of use tax due by the Partnership. This amount appears on Form 565, Page 1, line 29.


Use this section to enter information to calculate or suppress penalties and interest.

Date return filed

If the date entered here is later than the return due date, ExacTax automatically calculates the interest and penalties for failure to file, for failure to pay, and late-filing interest. If you leave this field blank, it defaults to the due date of the return.

ExacTax prints interest and penalty amounts, if applicable, on the bottom of Page 1 with the following identifying codes.


348

Code Penalty

FTF Failure to file

FTP Failure to pay

INT Interest due

TOT Total amount due including penalty and interest

Suppress penalties on return: Late interest

Enter X to suppress the late payment interest on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and late interest is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Failure to file or Failure to pay fields are blank and a failure to file or failure to pay penalty exists.

Suppress penalties on return: Failure to file

Enter X to suppress the failure to file penalty on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and the failure to file penalty is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Late interest or Failure to pay fields are blank and late payment interest or a failure to pay penalty exists.

Suppress penalties on return: Failure to pay

Enter X to suppress the failure to pay penalty on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and the failure to pay penalty is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Late interest or Failure to file fields are blank and late payment interest or a failure to file penalty exists.

Note: ExacTax prints the CA Late Filing Interest and Penalty Worksheets when penalties or interest exist. If the Late interest, Failure to file, and Failure to pay checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheets will not print.


349

California Payment, Estimate, Ext, Use Tax, Pen & IntCALPmt (2016)

Payments

Estimates

Extension

Use Tax


Calculate estimated fee (Form 3536)Balance due on Form 3536 (Force)


Amount of current year tax paid with Form 3522 (If different than $800)

Amount of prior year overpayment applied to current year fee

Extended due date (For filing instructions and penalties and interest calculations)

Amount of current year overpayment to apply to next year's fee

Suppress printing of next year Form 3522

Failure to payFailure to file

Date return filed (If different from return due date)

Suppress penalties on return:


Late interest

Date return filed

Use tax

Use current year calculated estimated fee as amount paidAmount Paid Calculated Amount

Underpayment of LLC Fee

Prior year LLC Fee

Form 3522 printed with extension (Suppresses printing of Form 3522)

Real estate or other withholding (Form 568, Line 8) (Enter Withholding Agent information on Screen 592B)

Date paid (If different than 6/15/2016)

Date paid (If different than 4/18/2016)

Fee Tax

Payments for Current Year Tax

Payments for Current Year Fee

Amount of prior year overpayment applied to current year tax (Do not enter an amount greater than $800)

Amount of current year overpayment to apply to next year's taxNext Year's Tax

Next Year's Estimated Fee

Balance due on Form 3522 (Force)

(568) (3522)

1

2

3

4

5 6 7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23 24

25

26 27

28

CALPmt CA3B



350

Form [CA3B] - California Payment, Estimate, Ext, Use Tax, Pen & Int

Overview

Use this form to complete Forms 3522, 3536, or 3537, to extend the due date of the return, and to calculate penalties and interest.

Payments

Use this section to enter the amount paid with the extension, the amount paid with Forms 3522 and 3536, and to enter the amount of the prior-year overpayment credited to tax.

Amount of prior year overpayment applied to current year tax

Enter any prior-year overpayment of tax. ExacTax applies it to the current-year tax and transfers the amount to Form 568, Page 1.

Amount of prior year overpayment applied to current year fee

Enter any prior-year overpayment of the fee. ExacTax applies it to the current-year fee and transfers the amount to Form 568, Page 1.

Use calculated current year estimated fee as amount paid / Calculated amount

If last year’s return was completed using ExacTax and the estimated fee was calculated for the current year, ExacTax proformas the amount to the Calculated Amount fields. If there has not been data entry for the estimated fee, enter X in the Use calculated current year estimated fee as amount paid field to move the calculated amount into the Amount Paid field.


Each time you print the extension (via the File > Print Extension option), ExacTax:

calculates the extension payment amount and enters it in this field, and

prints this amount on the main return, not on the extension.

When you overrule the calculated amount, ExacTax no longer issues the FYI diagnostic message indicating that you need to verify the amount paid with the extension before filing the return.

Real estate or other withholding

Enter the amount of real estate or other withholding to be applied as a payment. This amount is transferred to Page 1, line 8, of the return.

Estimates

Use this section to calculate the estimated tax payments for next year. ExacTax uses this information to complete Forms 3522 and 3536.

Amount of current year overpayment to apply to next year’s tax

Enter the amount of the tax overpayment to apply to next year’s tax.


351

Suppress printing of next year Form 3522

Enter X if you do not want to print Form 3522 with the return. If the return is marked as Final, Form 3522 is automatically suppressed.

Balance due of Form 3522 (Force)

If you enter an amount in this field, ExacTax enters this amount on Form 3522.

Amount of current year overpayment to apply to next year’s fee

Enter the amount of the fee overpayment to apply to next year’s fee.

Calculate estimated fee (Form 3536)

Enter X to calculate and print Form 3536, Estimated Fee for LLCs, and appropriate filing instructions.

Balance due on Form 3536 (Force)

ExacTax automatically calculates the estimated fee. If you want to use a different amount for Form 3536, enter it in this field.

Extension

Use this section to extend the due date and to complete Forms 3522 and 3537.

Extended due date

If you have printed an extension by choosing File > Print Extensions, the extended due date automatically appears in this field. When this field is completed and the Date return filed field is blank, ExacTax uses the date in this field to calculate penalties and interest. The extended due date also is reflected in the filing instructions.


If you enter an amount here, ExacTax enters the amount on Form 3537, completes the Extended due date field, and displays the amount in the Amount paid with extension field.

Note: ExacTax also enters the applicable due date in the Extended due date field.

Form 3522 printed with extension

Enter X if you do not want to print Form 3522 with the return. ExacTax automatically marks this field if you have printed Form 3522 by choosing File > Print Extensions.

Use Tax

Use this section to enter the amount of use tax due by the Partnership. This amount appears on Form 568, Page 1, line 13.


Use this section to calculate late-filing penalties and interest.

Date return filed


352

If the date entered here is later than the return due date, ExacTax automatically calculates the interest and penalties for failure to file, for failure to pay, and late-filing interest. If you leave this field blank, it defaults to the due date of the return.

ExacTax prints interest and penalty amounts, if applicable, on the bottom of Page 1 with the following identifying codes.

Code Penalty

FTF Failure to file

FTP Failure to pay

INT Interest due

TOT Total amount due including penalty and interest

Suppress penalties on return: Late interest: Fee (568)

Enter X to suppress the late payment interest on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and late interest is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Failure to file or Failure to pay fields are blank and a failure to file or failure to pay penalty exists.

Suppress penalties on return: Late interest: Tax (3522)

Enter X to suppress the late payment interest on the return. ExacTax prints the CA Form 3522 Late Filing Interest and Penalty Worksheets if this field is blank and late interest is due. The CA Form 3522 Late Filing Interest and Penalty Worksheets will also print if the Failure to pay field is blank and a failure to pay penalty exists.

Suppress penalties on return: Failure to file: Fee (568)

Enter X to suppress the failure to file penalty on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and the failure to file penalty is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Late interest or Failure to pay fields are blank and late payment interest or a failure to pay penalty exists.

Suppress penalties on return: Failure to pay: Fee (568)

Enter X to suppress the failure to pay penalty on the return. ExacTax prints the CA Late Filing Interest and Penalty Worksheets if this field is blank and the failure to pay penalty is due. The CA Late Filing Interest and Penalty Worksheets will also print if the Late interest or Failure to file fields are blank and late payment interest or a failure to file penalty exists.

Note: ExacTax prints the CA Late Filing Interest and Penalty Worksheets when penalties or interest exist. If the Late interest, Failure to file, and Failure to pay checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheets will not print.

Suppress penalties on return: Failure to pay: Tax (3522)

Enter X to suppress the failure to pay penalty on the return. ExacTax prints the CA Form 3522 Late Filing Interest and Penalty Worksheets if this field is blank and the failure to pay penalty is due. The CA Form 3522 Late Filing Interest and Penalty Worksheets will also print if the Late interest field is blank and late payment interest exists.

Note: ExacTax prints the CA Form 3522 Late Filing Interest and Penalty Worksheets when penalties or interest exist. If the Late interest, and Failure to pay checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheets will not print.


353

California LLC IncomeCALLC (2016)

LLC Income WorksheetLLC Income Worksheet

Cost of goods sold of disregarded entities

Distributive share of cost of goods sold from other passthrough entities (Force)

Gross income of disregarded business entities

Distributive share of ordinary income from passthrough entities (Force)

Gross rents from passthrough entities (Force)

California income from Schedule B, line 3 (Force)Cost of goods sold from Schedule B and federal Schedule F (Force)

Gross farm income from federal Schedule F (Force)Total other income (not losses) from Schedule B, line 10 (Force)Total ordinary gains (not losses) from Schedule D‐1, Part 2, line 17 (Force)Gross rents from federal Form 8825, line 17 (Force)

Gross income from other rentals (Force)

Total interest from Schedule K, line 5 (Force)Total dividends from Schedule K, line 6 (Force)Gross royalty income from Schedule K, line 7 (Force)Capital gains (not losses) included in Schedule D (Force)

Other portfolio income (not loss) from Schedule K, line 11a (Force)1231 gains (not losses) from Schedule K, line 10a (Force)

Other income (not loss) from Schedule K, line 11b (Force)

Distributive share of deductions from other passthrough entities (Force)

Use Schedule R apportionment percentage to calculate LLC Income Worksheet amounts

Gross income from other rentals from passthrough entities (Force)

1

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3

4

5

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22

CALLC CA4



354

Form [CA4] - California LLC Income

Overview

Use this form to complete the California Limited Liability Company Income Worksheet. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

LLC Income Worksheet

Use this section to enter amounts on Schedule IW, California Limited Liability Company Income Worksheet. The total income from this worksheet automatically displays on Form 568, Page 1, line 1. ExacTax automatically calculates the limited liability company fee based on this total income using the revised California fee schedule.

Use Schedule R apportionment percentage to calculate LLC Income Worksheet amounts

Enter X to calculate the LLC Income Worksheet amounts using the Schedule R apportionment percentage. ExacTax will multiply the amounts from Schedule K by the calculated apportionment percentage. If this field is left blank, ExacTax will directly transfer the amounts to the LLC Income Worksheet. Enter amounts in the Force fields to use amounts other than those on Schedule K.


355

Amount [14]

Book income not included ontax return (If different

from federal)

Ptr Alloc

[42]Other decreases

Description (40)

# Description (29)

Description (54)

California Schedules M-1 and M-2


CAM1M2

6PCAM1M2 01 11/03/16 PARTNERSHIP

Net income per books (Force) (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit adjustment not onbook (Force)

[21]Depreciation - book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Book-Tax InformationAccountant's calculated

amountsForce

Section 179 - book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amortization - book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule D-1 gain/loss - book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Maximum amount for Schedule M-1 rounding (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital account - beginning of year (Always specially allocated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Capital contributions - Cash (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cash distributions (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Return deductionsnot on books

(If different from federal)

Schedule K California adjustment (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA5

Overflow # 2016

ExacTax, Inc.

CA5

Ptr AllocAmount [42]#

Ptr AllocFair Market ValuePtr AllocAdjusted Basis [40]

Propertydistributions

[39]

Description (54)

Other increases


Schedule M-1 rounding difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[17] [18]


Description (35)Code Ptr AllocAmount [15]#

Description (40) Ptr AllocAmount [3]#

Description (35)Code Ptr AllocAmount [4]#Book expenses not deductedon return (If different

from federal)

Taxable income noton books (If different from

federal)

PtrAlloc

[1] [2]

[5]Book - tax depreciation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Book - tax amortization difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Book - tax 4797 gain/loss difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible conservation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible meals and entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nondeductible taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAllocI = Include on CA Schedules M-1, K & K1 (Default), X = Exclude on CA Schedules K & K1

I = Include on CA Schedules M-1, K & K1 (Default), X = Exclude on CA Schedules K & K1

PtrAlloc

[4]

[4]

[15]

[15]

[16]

[16]

[37]

[40]

[40]

[42]

[3]

[3]

[14]

[37]

Description (45)

[40]

[40]


Book - tax start-up or organization cost difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Start-up or organization costs - book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital contributions - Property (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

# Description (29) Ptr AllocFair Market ValuePtr AllocAdjusted BasisDistributions

subject toSection 737

[41]

[41]

[41]

[41]

Cash Received

PtrAlloc

[6][7][8][9]

[10][11]

[19]

[23][25]

[29][27]

[30]

[34][36]

[31][33][35]

[38]

[§3]

[§4]

[§14]

[§15]

[§16]

[§37]

[§40]

[§41]

[§42]

Form10A

Ptr Alloc

[41]

[41]

Lease inclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [13][12]


356

Form [CA5] - California Schedules M-1 and M-2

Overview

Use this form to prepare Form 565, Page 5 or 568, Page 6, and Schedules M-1 and M-2. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

ExacTax automatically uses amounts entered in ExacTax/1065 as the default amounts for Schedules M-1 and M-2. The amounts are displayed directly on Page 5. All applicable field items are transferred from ExacTax/1065 to the fields in this input form. To change amounts for the California return, enter data in the applicable fields or fields in this input form.


ExacTax uses information in this section to complete Form 565, Schedule M-1 on Page 5 and Form 568, Schedule M-1 on Page 6.

Items that are calculated and transferred automatically to California Schedule M-1 are as follows:

Guaranteed payments

The 50 percent (20 percent for DOT) reduction in applicable meals and entertainment expenses from Forms Inc, CAF2, CAFR2, and CARent

Limited partnership tax (LLC annual tax)

Foreign taxes paid

Disallowed conservation expense from Forms CAF2 and CAFR2

Differences between book and California depreciation

Differences between book and California amortization

Differences between book and California Schedule D-1 gain / loss

Tax-exempt interest and other tax exempt income

Differences between federal and California distributive income

Net income per books (Force)

ExacTax automatically transfers the amount of federal net income per books from Form 1065, Page 5, Schedule M-1, line 1 to Form 565, Page 5 and Form 568, Page 6, Schedule M-1, line 1. To change the amount, enter the revised amount.

Taxable income not on books

ExacTax automatically transfers amounts from federal Form M1M2 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Book expenses not deducted on tax return

ExacTax automatically transfers amounts from federal Forms M1M2 and K1-5 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers..


357

To include or exclude federal amounts for California purposes, enter the appropriate code from the following table, or see the fieldview list of available options.

Code Description Destination

I Include (default)

Transfers to Form 565, Page 4, Schedule K, line 18c and Page 5, Schedule M-1, line 4 (Form 568, Page 5, Schedule K, line 18c and Page 5, Schedule M-1, line 4)

X Exclude Transfers to Form 565, Page 5, Schedule M-1, line 4 only (Form 568, Page 5, Schedule M-1, line 4 only)

Tax credit adjustment not on books

Enter any tax credit adjustments that were not reported on the books. Information in this field is added to the field on Form 565, Page 5/Form 568, Page 6 Schedule M-1, line 4.

Book income not included on tax return

ExacTax automatically transfers amounts from federal Forms M1M2 and K1-5 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

To include or exclude federal amounts for California purposes, enter the appropriate code from the following table, or see the fieldview list of available options.


I Include (default)

Transfers to Form 565, Page 4, Schedule K, line 18b and Page 5, Schedule M-1, line 6 (Form 568, Page 5, Schedule K, line 18b and Page 6, Schedule M-1, line 6)

X Exclude Transfers to Form 565, Page 5, Schedule M-1, line 6 only (Form 568, Page 6, Schedule M-1, line 6 only)

Return deductions not on books


Schedule K California adjustment (Force)

ExacTax automatically calculates the Schedule K California adjustment as the difference between federal and California distributive income. Enter an amount, including 0 (zero), to override the calculated amount. The adjustment transfers to Schedule M-1, line 2 or 6, as applicable.

Schedule M-1 rounding difference

Click the Ptr Alloc button to specially allocate the Schedule M-1 rounding difference to the partners using ratios different from the profit-sharing percentages.

Book - Tax Information

ExacTax automatically transfers the book amounts from federal Form M1M2 to the respective California Schedule M-1 fields.


358

If the California amounts are entered in detailed asset data entry or in Form CADepr, then the California amounts are used to calculate the book / tax differences. Refer to Form CADepr for information on depreciation and amortization at the California level.

If tax depreciation and amortization are not entered, ExacTax places the book depreciation plus amortization amount on Form 565, Page 1, line 17 / Form 568, Page 4, Schedule B, line 17 and does not make reconciling adjustments. Likewise, if values are entered for tax depreciation and amortization but book depreciation and amortization are blank, ExacTax assumes that they are the same and does not make the adjustments. ExacTax makes automatic adjustments only when values entered for tax and book depreciation and amortization are different.


Enter an out-of-balance threshold, or enter 0 (zero) if you do not want any automatic adjustment to be made. ExacTax will perform an out-of-balance adjustment up to the amount specified. If this field is blank, ExacTax defaults to the amount entered in the Maximum amount for Schedule M-1 rounding field in federal Form M1M2.

If the difference between Schedule K, Distributive income / payment items and Schedule M-1, line 9 is less than the out-of-balance threshold, ExacTax will automatically adjust the appropriate M-1, line 4 or 7 to correct the out-of-balance condition. However, ExacTax will not perform any adjustment if Schedule M-1 is out of balance by more than the out-of-balance threshold.


ExacTax uses information in this section to complete Schedule M-2 on Page 5.

Capital account - beginning of year

ExacTax automatically transfers the amount of prior-year ending capital to Schedule M-2, line 1. Click the Ptr Alloc button to allocate the current year’s beginning capital on an absolute dollar basis to the partners.

Capital contributions: Cash / Property

ExacTax automatically transfers amounts from federal Form M1M2 to Schedule M-2, line 2. To change the federal amounts for California purposes, enter the revised amounts in these fields.

Other increases


Cash distributions

ExacTax automatically transfers amounts from federal Form M1M2 to Schedule M-2, line 6a. To change the federal amounts for California purposes, enter the revised amount.

Property distributions


Distributions subject to section 737


359


Other decreases



360

California Ordinary IncomeCAInc

6PCAINC 02 01/19/17 PARTNERSHIP

Description (29)# Amount [6]Ordinary income. . . . . . . . . . . . . . . . [§ 6]

CA6

Overflow # 2016

ExacTax, Inc.

CA6

[15]Ordinary income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DepreciationDepreciation to Schedule A:

Amount (If different from federal). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Percentage (If different from federal). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xxxxxx)

Type of cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .( 1 = Additional section 2634A costs, 2 = Other costs)

[16][17][18]

Depletion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [14][13]

PtrAlloc

[4]Total gain included on Schedule D-1, Part II, line 17 (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total loss included on Schedule D-1, Part II, line 17 (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[5]

Ordinary Income Adjustments

Description (29)# Amount [7]Ordinary loss(Line 11)(Enter as negative) . . . . . . . . . . [§ 7]

Guaranteed payments - deductibleHealth insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pensions and IRAs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[8][9]

[10]

** Type Code:D = DeductibleN = Nondeductible


361

Form [CA6] - California Ordinary Income

Overview

Use this form to enter ordinary income and depreciation adjustments. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

Ordinary Income Adjustments

Use this section to adjust Form 565 Page 1, line 12 / Form 568, Page 3, Schedule B, line 12.

Ordinary income

ExacTax automatically transfers other ordinary income from federal Form Inc to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Ordinary loss

ExacTax automatically transfers other ordinary losses from federal Form Inc to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Taxes included in ordinary deductions

ExacTax automatically transfers taxes from federal Form Inc to the field. To classify an item as a nondeductible limited partnership tax (LLC annual tax), enter the appropriate code from the following table, or see the fieldview list of available options.

Type Code



Transfers to Form 565, Page 2, line 21 (Form 568, Page 4, Schedule B, line 21)

N Nondeductible Transfers to Form 565, Page 5, Schedule M-1, line 4c and Page 4, Schedule K, line 18c (Form 568, Page 6, Schedule M-1, line 4c and Page 5, Schedule K, line 18c)

If there are nondeductible taxes from rent and royalty, farm or farm rental properties, make the changes in the corresponding Form CARent, CAF2, or CAFR2.

Taxes

If specially allocated, ExacTax automatically transfers the portion of deductible taxes entered in Form CAInc as a negative amount to Schedule K, line 11b. To modify the amount, enter the revised number in this field. California taxes will need to be re-allocated if specially allocated in federal Form Inc.

Depletion

If specially allocated, ExacTax automatically transfers depletion entered in federal Form Inc as a negative amount to Schedule K, line 11b. To modify the federal amount for California purposes, enter the revised number. California depletion will need to be re-allocated if specially allocated on the federal return.


362

Depreciation

Use this section to allocate a portion of Form 565, Page 1 depreciation to Form 565, Page 2, Schedule A depreciation (Form 568, Schedule B depreciation to Form 568, Schedule A depreciation). If these fields are blank, ExacTax automatically defaults to use the federal information entered in federal Form Inc.

Percentage

Use the Percentage field to allocate a portion of California depreciation to Schedule A. The percentage (xxx.xxxxxx) entered here is multiplied by all California depreciation amounts. The resulting amount prints in the statement for either Other costs or Additional section 263A costs on Schedule A depending on the code entered in the Type of cost field in this form.

Amount

Use the Amount field to allocate a portion of California depreciation to Schedule A. The amount entered here prints in the statement for either Other costs or Additional section 263A costs on Schedule A depending on the code entered in the Type of cost field in this form.

Type of cost

The code entered here is used to determine where to place the percentage or amount of depreciation on Schedule A. Enter a code from the table that follows, or see the fieldview list of available options.


1 Additional section 263A costs (default)

Transfers to Form 565, Page 2, Schedule A, line 4 (Form 568, Page 4, Schedule A, line 4)

2 Other costs Transfers to Form 565, Page 2, Schedule A, line 5 (Form 568, Page 4, Schedule A, line 5)


363

CAD CA Schedule D - Capital Gains and Losses, If Different [§ 1]

6PCAD 01 11/03/16

Description (45) Date Acquired Date Sold Sale Proceeds Cost or Basis

*Force Gain

Capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[2]

#

* Force codes1 = Short-term2 = Long-term

PARTNERSHIP

Total

3 = Long-term (federal 28%)4 = Force Long-term Sec 1202 N/A for CA

Short-term capital gain (loss) from Form 6781, Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Long-term capital gain (loss) from Form 6781, Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA7

Overflow # 2016

ExacTax, Inc.

CA7

[3]

[6]

Adjust toGain(Loss)

Undistributed long-term capital gains from Form 2439. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[8]

[9]

60% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[4]

[5]

50% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Section 1202 capital gain distributions

75% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[7]100% exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loss


364

Form [CA7] - California Capital Gains and Losses

Overview

Use this form to complete Schedule D, Capital Gain or Loss.

Capital Gains and Losses

Use this section to enter the sale of capital assets that are not sold on installment.

Detail schedule

ExacTax automatically transfers detail for the description, date acquired, date sold, proceeds, and basis from federal Form D to the field attached to these fields. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

ExacTax determines long-term or short-term status of an asset based on the dates entered in the Date Acq and Date Sold fields in the field. If the Date fields are blank, ExacTax uses short-term status as the default.

You can select the Force code from the fieldview. Codes 3 and 5 are not applicable for California and are treated in the same manner as code 2.

Capital gain distributions

ExacTax automatically transfers the amount of capital gain distributions from the federal return to Schedule D, line 4. To change the amount for California purposes, enter the information here.

Short-term capital gain (loss) from Form 6781, Part II

ExacTax automatically transfers the amount of short-term Form 6781, Part II gains (losses) from the federal return to Schedule D. To change the amount for California purposes, enter the information here.

Long-term capital gain (loss) from Form 6781, Part II

ExacTax automatically transfers the amount of long-term Form 6781, Part II gains (losses) from the federal return to Schedule D. To change the amount for California purposes, enter the information here.


365

Description (29)

CA Schedule K - Income (Loss)CAK

6PCAK 01 11/03/16 PARTNERSHIP


If different from federal

Other income . . . . . . . . . . . . . . . . . . . . .

Interest income . . . . . . . . . . . . . . . . . . . . . . .

Dividend income . . . . . . . . . . . . . . . . . . . . .

Other portfolio income (loss) . . . . . . . . . . .

Mining exploration costs recapture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nondepreciable personal property used in trade or business:(Does not default to fed)Short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Short-term capital loss (Enter as a negative) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1256 contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA8

2016

ExacTax, Inc.

CA8

PtrAlloc

Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 4684 long-term net gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D-1 income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified small business stock (Section 1202) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[13]

PtrAlloc



[10]

Other loss (Enter as a negative) . . . . . . .Amount [11] Ptr Alloc

[11]

[9]

Long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term capital loss (Enter as a negative) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


[2]


[6]

Overflow #

Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§1]

[§5]

[8][7]

[§ 9]

[§10]

[§11]

[15][12][14]

[16][18][20][22][24]

[17][19][21][23][25][26][27][28]

Description (29)

[2]

[6]

[9]

[10]

[11]

US interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3] [4]


366

Form [CA8] - California Schedule K - Income (Loss)

Overview

ExacTax automatically uses amounts entered in ExacTax/1065 as the default amounts for Schedule K. The amounts are displayed directly on Form 565, Page 4 / 568, Page 5. All applicable field items are transferred from ExacTax/1065 to the fields in this input form. To change amounts for the California return, enter data in the applicable fields or fields in this input form.

Use this form to complete portions of Form 565, Page 4 and 568, Page 5, Schedule K. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

Items that are calculated and automatically transferred from other California input forms to Schedule K are listed here:

Line 4, Guaranteed payments to partners

Line 11b, Net gain from Form 4684, long-term gain

Line 11c, Net loss from Form 4684, long-term loss from trade/business property

Line 11c, Net loss from Form 4684, long-term loss from income producing property

Line 11b, Schedule D-1 income

Line 11c, Schedule D-1 loss

Line 11b, section 1202 gains from Schedule D

In addition to the above items that are associated with this input form, ExacTax calculates and transfers items associated with Forms CAK-2, CAK-3, CAK-4, and CAM1M2 to Schedule K. See Forms CAK-2, CAK-3, CAK-4, and CAM1M2 for an additional list of these items.

Enter California amounts only when there is a difference between the corresponding federal Schedule K amount and the state Schedule K amount. If blank, the California amount automatically defaults to the federal Schedule K amount.

Income (Loss)

Use this section to enter additional income items used in calculating California amounts.

ExacTax combines the guaranteed payments entered in Forms CAK, CAK-2, CAF2, CAFR2, and CARent with the nondeductible guaranteed payments entered in Form CAK to calculate the total guaranteed payments for Schedule K, line 4. ExacTax defaults the guaranteed payments to the profit sharing percentage for allocation purposes. Therefore, only allocate them separately to use a different allocation scheme. The guaranteed payment amounts entered in Forms CAK, CAF2, CAFR2, and CARent should also include the health insurance coverage for partners.

Interest income

ExacTax automatically transfers interest income from federal Form K to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Dividend income


367

ExacTax automatically transfers ordinary dividends from federal Form K to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.


ExacTax automatically transfers amounts from federal Form K to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Other income (loss) items: Other income

ExacTax automatically transfers amounts from federal Form K to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

ExacTax adds the items entered in the field attached to this field to the following items in the printed statement:

Farm income that is specially allocated

Schedule D-1 gain / loss that is specially allocated

Taxes applicable to ordinary income that are specially allocated

Depletion that is specially allocated

The deductible portion of entertainment expense applicable to ordinary income that is specially allocated

Page 1 (Schedule B), Schedule A and Schedule F depreciation and amortization amounts that are specially allocated

Form 4684 amounts

Mining exploration costs recapture

Cancellation of debt

Gains from short-term and long-term nondepreciable personal property

Oil income, from the ExacTax/Oil & Gas module, that is specially allocated


Section 1256 Contracts

Other income (loss) items: Mining exploration costs recapture

ExacTax automatically transfers the amount of mining exploration costs recapture entered in federal Form K to Schedule K, line 11. To modify the federal amount for California purposes, enter the revised amount. The amount is included in the total Other income (loss) on line 11.


ExacTax automatically transfers the amounts of cancellation of debt entered in federal Form K to Schedule K, line 11. To modify the federal amount for California purposes, enter the revised amount. The amount is included in the total Other income (loss) on line 11.


368

Nondepreciable personal property used in trade or business: Short-term / Long-term capital gain / loss

Use these fields to enter the amounts of short-term and long-term capital gain (loss) on nondepreciable personal property. The amounts of capital gain (loss) from nondepreciable personal property are subtracted from the amounts on California Schedule D when transferred to Schedule K, line 8 or 9a, and are included in the total Other income on line 11b and Other loss on line 11c.

Section 1256 contracts

ExacTax automatically transfers the amount of section 1256 contracts and straddles from federal Form K-1, Part I to Schedule K, line 11b. To modify the federal amount for California purposes, enter the revised amount.


Click the Ptr Alloc button to specially allocate the amounts being transferred from California Schedule D. ExacTax automatically includes these amounts in the printed statement and in the Other income (loss) total on Schedule K, lines 11b and 11c. See Form CAD to enter the amount of qualified small business stock (section 1202).


369

Code 209 = Comm Dev Finl Inst DepositsCode 236 = Advance Strategic Aircraft CreditForm 3548 = Disable Acc Eligible Sm BusForm 3547 = Donated Ag Products TransForm 3546 = Enhanced Oil RecoveryForm 3805Z = EZ Hiring/Sales/UseForm 3531= Competes Credi

Description (29)

AmountDescription (29)

Form 4684 short-term loss from income producing property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 3523 = ResearchForm 3592 = College Access CreditForm 3809 = Target Tax AreaSchedule S = Other State Tax CreditForm 3554 = New Employment Credit

Ptr Alloc

Description (29)

Description (29)

CA Schedule K – Credits

Form 3541 = Motion Picture & T.v. CrForm 3811 = Donated fresh fruits & veg. CrForm 3511 = Environmental TaxForm 3807 = Local Agency Military Base RecovForm 3808 = Manu Enhancement AreaForm 3503 = Natural Heritage PreservationForm 3507 = Prison Inmate Labor

CA Schedule K - DeductionsCAK-2

6PCAK-2 01 11/03/16 PARTNERSHIP

Income subject to nonresident withholding (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Low-income housing credit . . . . . . . . . . . .

Credits related to rental real estate . . . . . .Credits related to other rental activities . . .

Nonconsenting nonresident member’s tax (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other credits . . . .

Other deduction items:

Defaults to federal

Other. . . . . . . . . . . . . . . . . . . . . . . . . .

Contributions:Cash contributions (50%) . . . . . . . . . . .Cash contributions (30%). . . . . . . . . . .Noncash contributions (50%) . . . . . . . .Noncash contributions (30%). . . . . . . .Cap gain prop to a 50% org. (30%) . . .Capital gain property (20%) . . . . . . . . .

Guaranteed payments related to portfolio deductions (subject to 2% floor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subject to 2% floor . . . . . . . . . . . . . . .

Other health insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Educational assistance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other deductions . . . . . . . . . . . . . . . .

Commercial revitalization deduction from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dependent care benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


CA9

Overflow # 2016

ExacTax, Inc.

CA9


[1] [2]

[11] [12]

[8]

[9]

[10]

Amount

Ptr Alloc

[26]

Amount

Ptr Alloc

[14]

Amount

Ptr Alloc

[13]

Nonresident withholding tax (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [4] [5]

Description (29)

Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [9][8]Total expenditures to which Section 59(e) applies (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Type of expenditures (If different from federal) (36) [12]

Start-up expense (subject to 2% floor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Organization costs (subject to 2% floor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#

[§3][§4][§5][§6][§7]

[10] [11]

[§13]

[§14]

[§26]

[19]

[24]

[20]

[25]

[27]

[31][33]

[29][28][30][32][34]

[38][39]

[§8]

[§9]

[§13]

Real estate or other withholding (Enter amount used as payment on Input PPmt of Input LPmt). . . . . . . . . . . . . . . . . [6] [7]

Form/CR Code

Ptr AllocDescription (29) Amount# Form/CR Code

Other pensions and IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[35] [36]

[§10]

PtrAlloc

Withholding

Use Schedule R apportionment percent to calculate income subject to withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3]

Credits

Lease inclusion (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[21] [22]

[37]

Contributions (100%) . . . . . . . . . . . . . .

Health insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pensions and IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[18]

[§1][§2]

[4]

[5]

[6]

[7]

[3]

[2]

[1]

[17][15]

PtrAlloc

[16]


370

Form [CA9] - California Schedule K - Deductions

Overview

Use this form to complete the Deductions section on Schedule K. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

ExacTax automatically uses amounts entered in ExacTax/1065 as the default amounts for Schedule K. The amounts are displayed directly on Form 565, Page 4 or 568, Page 5. All applicable field items are transferred from ExacTax/1065 to the fields in this input form. To change amounts for the California return, enter data in the applicable fields or fields in this input form.


Line 12, Section 179 expense deduction

Line 13e, Loss from Form 4684, short-term loss from income producing property

Line 13e, California depreciation and amortization amounts from all activities (that were specially allocated and not reported by activity on the federal return)

Deductions

Use this section to enter additional deductions and to modify federal deductions entered on federal Schedule K-2.

Contributions

ExacTax automatically transfers amounts from federal Form K-2 and the totals from federal Form 8283 to the field attached to these fields. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

ExacTax transfers the totals to California Schedule K, line 13a and generates a printed statement to support the different types of contributions.

Investment interest expense

ExacTax automatically transfers investment interest expense from federal Form K-2 to Schedule K, line 13b. To modify the federal amount for California purposes, enter the revised number.

Total expenditures to which section 59(e) applies

ExacTax automatically transfers total expenditures to which section 59(e) applies from the ExacTax/Oil & Gas module and federal Form K-2. To modify the federal amount for California purposes, enter the revised number.

Type of expenditures

ExacTax automatically transfers the type of expenditures from federal Form K-4. If the amount of 59(e) expenditures is from the ExacTax/Oil & Gas module, the type of expenditures defaults to Intangible Drilling Costs. To modify the default description, enter the revised text.

Deductions related to portfolio income: Subject to 2% floor / Other


371

ExacTax automatically transfers amounts from federal Form K-2 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

ExacTax adds the items entered in the field attached to this field to the following items.

Guaranteed payments related to portfolio deductions

California depreciation and amortization amounts related to portfolio deductions

Deductions - royalty income

Other deduction items: Health insurance considered guaranteed payments to partners

ExacTax automatically transfers the amount of health insurance considered guaranteed payments to partners entered in federal Form K-2 to Schedule K, line 13e and Schedule M-2, line 3. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Pensions and IRAs considered guaranteed payments to partners

ExacTax automatically transfers the amount of pension and IRAs considered guaranteed payments entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Deductions related to portfolio income: Guaranteed payments related to portfolio deductions (subject to 2% floor)

ExacTax automatically transfers the amount entered in federal Form K-2 to Schedule K, lines 4 and 13d. To modify the federal amount for California purposes, enter the revised number.

Deductions related to portfolio income: Start-up expenses / Organization costs (subject to 2% floor)

ExacTax automatically transfers the start-up expenses and organization costs entered in the asset module to Schedule K, Other deductions at print time. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Other deductions

ExacTax automatically transfers amounts from federal Form K-2 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

ExacTax adds the items entered in the field attached to this field to the following items in the printed statement:

The amount from CA Form 4684, line 38


Educational assistance benefits

Dependent care benefits


Commercial revitalization deduction from rental real estate activities

Penalty of early withdrawal of savings

Pensions and IRAs


372

Other health insurance

Other deduction items: Other health insurance

ExacTax automatically transfers the amount of other health insurance entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Educational assistance benefits

ExacTax automatically transfers the amount of educational assistance benefits entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Dependent care benefits

ExacTax automatically transfers the amount of dependent care benefits entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Commercial revitalization deduction from rental real estate activities

ExacTax automatically transfers the amount of commercial revitalization deduction entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Penalty on early withdrawal of savings

ExacTax automatically transfers the amount of penalty on early withdrawal of savings entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Other pensions and IRAs

ExacTax automatically transfers the amount of other pension and IRAs entered in federal Form K-2 to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.

Other deduction items: Form 4684 short-term loss from income producing property

Click the Ptr Alloc button to specially allocate the amount being transferred from CA Form 4684, Page 2. This amount is included in the printed statement and in the total for California Schedule K, line 13e.

Withholding

Use this section to enter California withholding income and tax.

Income subject to nonresident withholding (Force)

Force the amount of California source income subject to nonresident withholding. This amount is used to calculate Form 592-B.

Nonresident withholding tax (Force)

Force the amount of California nonresident withholding tax. This amount is used to calculate Form 592-B.

Real estate or other withholding

Enter the amount of real estate or other withholding to distribute to the partners or members on Form 592-B. Withholding tax to be used a payment on the return, should be entered in Form CAPPmt or CALPmt.


373

Credits

Use this section to enter the various California credits. Note that this section does not default to amounts entered in ExacTax/1065. If the fields in this section are blank, no amounts appear on Schedule K. Any ordinary income adjustments required for California credits should be made in Form CAInc.

Low-income housing credit

Enter the detail relating to the California low-income housing credit in the field. The total of the amounts entered in this field appears on Schedules K and K-1, line 15(b).

Credits related to rental real estate

Enter credits related to rental real estate in the field. The code is necessary for completing the credit lines of the group nonresident return.

Credits related to other rental activities

Enter credits related to other rental activities in the field. The code is necessary for completing the credit lines of the group nonresident return.

Other credits

Enter credits related to these forms or code sections in the field. Enter a form or code from the table that follows or choose one from the fieldview.

Form Code Description

Code 209 Community Development Financial Institutions Investment Credit

Code 236 Advanced Strategic Aircraft Credit

Form 3501 Employer Child Care Program/Cont Cr

Form 3503 Natural Heritage Preservation Credit

Form 3507 Prison Inmate Labor Credit

Form 3511 Environmental Tax Credit

Form 3523 Research Credit

Form 3531 Competes Credit

Form 3541 Motional Picture and Television Production Credit

Form 3546 Enhanced Oil Recovery Credit

Form 3547 Donated Agricultural Products Transportation Credit

Form 3548 Disabled Access Credit for Eligible Small Businesses

Form 3554 New Employment Credit

Form 3592 College Access Credit

Form 3805Z Enterprise Zone Hiring and Sales or Use Tax Credit

Form 3807 Local Agency Military Base Recovery Area Hiring and Sales or Use Tax Credit

Form 3808 Manufacturing Enhancement Area Hiring Credit

Form 3809 Targeted Tax Area Hiring and Sales or Use Tax Credit


374

Form Code Description

Form 3811 Donated Fresh Fruits or Vegetables Credit

Schedule S Other State Tax Credit


375

Description (29)

Description (29)

Description (29)

Description (29)

Description (29)

Description (29)

Description (29)

CA Schedule K - Adjustments, Other and Sale CA10CA SChedule K - Other

CAK- 4

6PCAK-4 01 11/03/16 PARTNERSHIP

Tax-exempt interest income . . . . . . . . . . .

Look-back interest - completed long termcontracts . . . . . . . . . . . . . . . . . . . . . . . . .

Disposal of Property with Section 179 Expense in Prior Year

Section 179 included in gain/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gain/loss reported separately from CA Sch K, line 20c . . . . . . . . . . . . . . . . . . . . .

ForceCalculated Amount

Overflow # 2016

ExacTax, Inc.

Look-back interest - income forecastmethod . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest expense for corporate partners . .

Section 453(I)(3) information . . . . . . . . . .

Section 453A(c) information. . . . . . . . . . . .

Section 1260(b) information . . . . . . . . . . .

Interest allocable to production expenditures (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CCF nonqualified withdrawals (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amortization of reforestation costs . . . . . .

Unrelated business taxable income (If different from federal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Aggregate gross receipts less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PtrAlloc

[14]

[16]

[19] [20]

[21] [22]

Ptr Alloc

[8]

Ptr Alloc

[9]

Ptr Alloc

[10]

Ptr Alloc

[11]

Ptr Alloc

[12]

Ptr Alloc

[13]

Ptr Alloc

[18]

PtrAlloc

PtrAlloc

Amount [8]

Amount [9]

Amount [10]

Amount [11]

Amount [12]

Amount [13]

Amount [18]


[2]

Amount [2]

Investment income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [5]

Investment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [6]

[§2]

[§8]

[§9]

[§10]

[§11]

[§12]

[§13]

[§18]

[7]

[15]

[24][23]

[4]

[17]


376

Form [CA10] - California Schedule K - Adjusts, Other and Sale

Overview

Use this form to complete Other Information sections on California Schedule K. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

ExacTax automatically uses amounts entered in ExacTax/1065 as the default amounts for Schedule K. ExacTax displays the amounts directly on Form 565 / 568, Page 5. All applicable field items are transferred from ExacTax/1065 to the fields in this input form. To change amounts for the California return, enter data in the applicable fields or fields in this input form.


Line 19a, Distributions of money (cash and marketable securities)

Line 19b, Distribution of property other than money

Line 20a, Investment income

Line 20c, Other items and amounts reported separately to partners

Other

Use this section to complete the Other Information section on California Schedules K and K-1.


ExacTax automatically transfers tax-exempt interest income from federal Form K-4 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Investment income (Force)

Click the Ptr Alloc button to specially allocate the amount of investment income if different from the automatic calculation. ExacTax automatically calculates the amount based on the entries in Schedule K-1, lines 5 through 7 and 11a.

Investment expenses

ExacTax automatically transfers investment expenses included in portfolio deductions from federal Form K-4. To modify the federal amount for California purposes, enter the revised number in this field.

Look back interest - completed long term contracts / … / Amortization of reforestation income

ExacTax automatically transfers these amounts from federal Form K-4 to the fields.

Aggregate gross receipts less returns and allowances

ExacTax calculates California aggregate gross receipts less returns and allowances based upon information entered on Form 565, Page 4 / 568, Page 5, Schedule K. To change the calculated amount, enter an amount. The following lists the items used to calculate California’s aggregate gross receipts:

Gross receipts / sales

Returns and allowances


377

Other income

Other income from Schedule K

Portfolio income

Gross income from rental real estate activities

Gross income from other rental activities

Royalty income

U.S. obligation interest income

Non-U.S. interest income

Farm income

Gross proceeds of asset sales from Forms CASale and CAD

Disposal of Property with Section 179 Expense in Prior Year

ExacTax uses this section to report the gain / loss separately stated on CA Schedule K, line 20c on the California Limited Liability Company Income Worksheet and Form 540NR.

Gain / loss reported separately from CA Schedule K, line 20c

California requires partnerships to separately report the disposition of assets where Section 179 expense was claimed in a prior year. These dispositions are no longer reported on Schedule D-1, but instead are reported on CA Schedule K, line 20c. This amount is calculated from information entered in Forms CA8824PT, CASalePT, and CAK1Sale.

ExacTax reduces the basis of the asset by the amount of the Section 179 deduction when calculating the gain or loss. This amount is included on the California Limited Liability Company Income Worksheet and Form 540NR. Use the Force field to override the calculated amount. If 0 is entered, no adjustment will be made.

Section 179 included in gain / loss

This field contains the total Section 179 expense deduction that was originally claimed on the assets sold during the tax year. This amount is provided for reference purposes only.


378

PtrAlloc

PtrAlloc

IncomeInclude net income (loss) from rental real estate in Section 179 business income . . . . . . . . . . . . . . . . . . . . . . . . . . .

CAK1 California Form 541/565/568 Sch K-1 - Income

6PCAK1 01 11/03/16

Activity unit number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name of passthrough entity . . . . . . . . . . . . . . . . . . . .

Type of entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Partnership, 2 = Trust, 3 = Farm partnership)

[1]

PARTNERSHIP

1065 1041Line 1

2

Ordinary income from trade or business activities . . . . . . . . . . .

Guaranteed payments to partner . . . . . . . . . . . . . . . . . .

3

5 1

6 2

Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . .8

7


Form 4684 L/T loss from trade/business property (Enter as negative)11b

Form 4684 L/T loss from income producing property(Enter as negative)11b

[98][94]

11b Section 1256 contracts and straddles . . . . . . . . . . . . . . .Mining exploration costs recaptured . . . . . . . . . . . . . . . .11b

Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .11b

11a

11b

CA Source

Form 4684 long-term gain . . . . . . . . . . . . . . . . . . . . . . . .11b

Net section 1231 gain (Other than casualty and theft) . . . . .10a

CA11Overflow # 2016

ExacTax, Inc. CA11

PtrAlloc

[31]

Net section 1231 loss (Other than casualty and theft) (Enter as negative)

11c

6

Ordinary (loss) from trade or business activities (Enter as a negative)

8

4

10b

7

3

5

Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . .9 3

Section 1202 gain - 50% exclusion . . . . . . . . . . . . . . . . .Section 1202 gain - 60% exclusion . . . . . . . . . . . . . . . . .

[82]

[4][5]

[30]

[49][53][57]

[48][52][56]

[71][75]

[66][70][74]

Ordinary income from publicly traded partnership . . . . . . . . . .[14] [15]

Ordinary (loss) from publicly traded partnership (Enter as negative)

[18] [19][22] [23]

# CA Source [25][24]

Name of Entity (40) CA Law [24] Ptr AllocPtr Alloc[25]

Type (20)

CA LawPtr

Alloc[8]

[12] [13][16] [17]

[9]

[20] [21]

[10] [11]

[§ 24] Net income (loss) from rental real estate activities


CA Law [26] Ptr AllocPtr Alloc[27]

[§ 26] Net income (loss) from other rental activities


Description (29) CA Law [32] Ptr AllocPtr Alloc[35]

[§ 32] Interest

PtrAlloc

[47][51][55]

[46][50][54]

[29][28]

Description (29)

[67][69][73]

[64][68][72]

[65]

PtrAlloc

PtrAlloc

[97][101]

[84]

[96][100]

[85]

[95][99]

[83]

PtrAlloc

Section 1202 gain - 75% exclusion . . . . . . . . . . . . . . . . .[86] [87] [88] [89]



[§ 40] Ordinary dividends



[§ 44] Royalties

Description (29)



[§ 62] Other portfolio income (loss)

Description (29)

# CA Source [107][106]


[§ 106] Other loss

Description (29)

# CA Source [81][80


[§ 80] Other income

Description (29)

[80] [81]

[106] [107]

Section 1202 gain - 100% exclusion . . . . . . . . . . . . . . . .[90] [91] [92] [93]

[61][60][59][58]

[79][78][77][76]

[105][104][103][102]

5 1 # CA Source [37][38]


[§ 36] US Interest


379

Form [CA11] - California Form 541/565/568 Sch K-1 - Income

Overview

Use this form to enter passthrough information for Form 565 or 568 and Schedule K-1. ExacTax automatically transfers all applicable Form K1 information to this input form.

To change amounts for the California return, enter data in the applicable fields or fields in this input form. Amounts that are specially allocated for federal purposes will need to be specially allocated for state purposes.

Amounts in the California Source column are only used on Schedule K-1 and the CA Partner/Member Source Income Worksheet when Passthrough income is nonbusiness is selected on Form CAAlloc.

General Information

In this section, enter general information for Schedule K-1.

Income

Use this section to enter passthrough income items and to modify items used in calculating California law and source amounts.

Net income (loss) from rental real estate activities

ExacTax automatically transfers all passthrough net rental real estate income (loss) amounts from federal Form K1 to the field attached to this field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Net income (loss) from other rental activities

ExacTax automatically transfers all passthrough net other rental income (loss) amounts from federal Form K1 to the field attached to this field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Interest

ExacTax automatically transfers interest income amounts from federal Form K1 to the field. Interest income from U.S. obligations is automatically transferred to a statement for Schedule K and K-1, line 18a. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Ordinary dividends

ExacTax automatically transfers dividend income amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.


380

Royalties

ExacTax automatically transfers all passthrough royalty income amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.


ExacTax automatically transfers Other portfolio income (loss) amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Other income

ExacTax automatically transfers Other income amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.

Other loss

ExacTax automatically transfers Other loss amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.


381

Ptr Alloc

[76]

Description (29)

Deductions

CAK1-2

6PCAK1-2 02 01/13/17

Activity unit number . . . . . . . . . .


[1]

PARTNERSHIP

1065 1041

Otherdeductions

[§ 76]

CA12Overflow # 2016

ExacTax, Inc. CA12

California Passthrough Schedule K-1 - Deductions

Line Item

Cash Contributions (50%) . . . . . . . . . . . . . . . . . . . . . . . . . .Contributions:

Form 4684 short-term loss from income producing prop

Cash Contributions (30%) . . . . . . . . . . . . . . . . . . . . . . . . . .Noncash contributions (50%) . . . . . . . . . . . . . . . . . . . . . . .Noncash contributions (30%) . . . . . . . . . . . . . . . . . . . . . . .Capital gain property to a 50% organization (30%) . . . . . .Capital gain property (20%) . . . . . . . . . . . . . . . . . . . . . . . .

12 Section 179 expense deduction . . . . . . . . . . . . . . . . . . . . . . .


Amounts paid for medical insurance . . . . . . . . . . . . . . . . .Educational assistance benefits . . . . . . . . . . . . . . . . . . . .Dependent care benefits . . . . . . . . . . . . . . . . . . . . . . . . . .Preproductive period expenses . . . . . . . . . . . . . . . . . . . .Commercial revitalization deduction from rental realestate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Penalty on early withdrawal of savings . . . . . . . . . . . . . . .Pensions and IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Reforestation expense deduction . . . . . . . . . . . . . . . . . . .

Deductions - portfolio (2%) . . . . . . . . . . . . . . . . . . . . . . . .Deductions - portfolio (other) . . . . . . . . . . . . . . . . . . . . . . .

Other deductions items:

13a

California Law [76]#

[78]

[76]

[76]

13a

13a

13a

13a

13a

Investment interest expense on investment debts:Section 59(e) expenditures:

Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27]Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13b

13c

13d

13d

13e

13e

13e

13e

13e

13e

13e

13e

Contributions (100%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13a [9]

[21]

[30]

[36][40]

[31]

[33]

[41][37]

[45][49][53][57]

[61]

[65][69][73]

[44][48][52][56]

[60]

[64][68][72]

Deductions - royalty income . . . . . . . . . . . . . . . . . . . . . . .13d [32]

[10]

California Law

[11] [12][10][10]

[14][16][18][20]

California Source

[4][3]

[28]

[38][42]

[29]

[35]

[43][39]

[47][51][55][59]

[46][50][54][58]

[63]

[67][71]

[62]

[66][70]

[34]

[81][80][79]

Ptr Alloc

[77]

California Source [77]

[77]

[77]

[19][17][15][13]

[22][25] [26][23] [24]

Section 179 expense deduction (Force) . . . . . . . . . . . . . . . . . [7][5]

[75][74]


382

Form [CA12] - California Form 541/565/568 Sch K-1 - Deductions

Overview

Use this form to enter passthrough information for Form 565 or 568 and Schedule K-1. ExacTax automatically transfers all applicable Form K1-2 information to this input form.

To change amounts for the California return, enter data in the applicable fields or fields in this input form.

Amounts in the California source column are only used on Schedule K-1 and the CA Partner/Member Source Income Worksheet when Passthrough income is nonbusiness is selected on Form CAAlloc.

Deductions

Use this section to enter deduction items and to modify items used in calculating the California amounts.

Section 179 expense deduction

Enter the passthrough Section 179 expense deduction. The amount entered here is added to the partnership’s total Section 179 expense (subject to the Section 179 expense limitation) and appears on Form 565 or 568, Schedule K, line 12, column d.

Other deductions

ExacTax automatically transfers all other deductions amounts from federal Form K1 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers..


383

Ptr Alloc

[12]

[12]

[12]

Ptr Alloc

[9]

[9]

[9]

Ptr Alloc

[8]

[8]

[8]

Ptr Alloc

[7]

[7]

[7]

CA K-1 Business Income

Description (35)

Description (35)

Description (35)

Form/Credit Code[§ 8] Credits related to rental real estate#

Description (35)

California Passthrough Schedule K-1 - Credits

Withholding

CAK1-3

6PCAK1-3 01 11/03/16 PARTNERSHIP

1065 1041

Low-incomehousing credit [§ 7]

15f

Business income for unitary partners (Table 2, Line A) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA13Overflow # 2016

ExacTax, Inc. CA13

Line Item

Nonconsenting nonresident member's tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15e

15d

15c

15b

Income subject to withholding (From Form 592-B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax withheld (From Form 592-B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Code 209 = Comm Dev Financial Inst Deposits CreditCode 236 = Advanced Strategic Aircraft CreditForm 3501 = Employer Child Care Program/Cont CreditForm 3503 = Natural Heritage Preservation CreditForm 3507 = Prison Inmate Labor CreditForm 3511 = Environmental Tax CreditForm 3523 = Research CreditForm 3531 = Competes CreditForm 3541 = Motion Picture and Television Production CrForm 3546 = Enhanced Oil Recovery Credit

Form 3547 = Donated Agricultural Prod Trans CreditForm 3548 = Disabled Access Credit Eligible Small BusinessForm 3592 = College Access CreditForm 3805Z = Enterprise Zone Higher/Sales/Use Tax CreditForm 3807 = Local Agency Military Bs Recovery CreditForm 3808 = Manufact Enhance Area (MEA) Higher CreditForm 3809 = Target Tax Area (TTA) Higher/Sales/Use CreditForm 3811 = Donated Fresh Fruits or Vegetables CreditSchedule S = Other State Tax CreditForm 3554 = New Employment Credit

Activity unit number . . . . . . . . . . . . .


Amount

[3]

PtrAlloc

[4]

Amount [7]#

Amount [8]

Form/Credit Code# Amount [9][§ 9] Credits related to other rental activities

[10]

PtrAlloc

[11]

Form/Credit Code# Amount [12][§ 12] Other credits

[15]

PtrAlloc

[16]

[5] [6]

CA Credits

Enter withholding amount used as payment on Form CAPPmt {CA3A} or CALPmt {3B}

Cost of goods sold (Table 3, Line 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[17] [18]

[19] [20]

[21] [22]

Total deductions (Table 3, Line 1b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total gross rents (Table 3, Line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross income from other rental activities (Table 3, Line 3). . . . . . . . . . . . . . . . . . . . . . . . . .

15a

CA Schedule K-1 (565), Page 3

[13] [14]


384

Form [CA13] - California Form 541/565/568 Sch K-1 - Credits

Overview

Use this form to enter passthrough information for Form 565 or 568 and Schedule K-1.

Withholding

Use this section to enter the California withholding income and tax. Note that this section does not transfer amounts from ExacTax/1065.

Income subject to withholding

Enter the amount of passthrough income subject to withholding from California Form 592-B. This amount is added to the calculated amount of income subject to nonresident withholding (excluding passthrough income) on Form 592-B.

Tax withheld

Enter the amount of nonresident withholding from California Schedule K-1. This amount is added to the calculated amount of nonresident withholding on Form 592-B.

Credits

Use this section to enter the various California credits. Amounts entered here will be combined with credit amounts in Form CAK-3. Note that this section does not transfer amounts from ExacTax/1065.

Low-income housing credit

Enter the detail relating to the California low-income housing credit in the field. The total of the amounts entered in this field appears on Schedules K and K-1, line 15(b).

Credits related to rental real estate

Access the field to enter credits related to rental real estate. The code is necessary for completing the credit lines of the group nonresident return.

Credits related to other rental activities

Access the field to enter credits related to other rental activities. The code is necessary for completing the credit lines of the group nonresident return.

Nonconsenting nonresident member’s tax

Use this field to enter tax paid on behalf of the partnership/LLC passed through on Schedule K-1(568).

Other credits

Access the field to enter credits related to these forms or code sections. Enter a form or code from the table that follows or choose from the fieldview.


Code 236 Advance Strategic Aircraft Credit

Form 3501 Employer Child Care Program/Cont Cr


385


Form 3503 Natural Heritage Preservation Credit

Form 3507 Prison Inmate Labor Credit

Form 3511 Environmental Tax Credit

Form 3523 Research Credit

Form 3531 Competes Credit

Form 3541 Motional Picture and Television Production Credit

Form 3546 Enhanced Oil Recovery Credit

Form 3547 Donated Agricultural Products Transportation Credit

Form 3548 Disabled Access Credit for Eligible Small Businesses

Form 3554 New Employment Credit

Form 3592 College Access Credit

Form 3805Z Enterprise Zone Hiring and Sales or Use Tax Credit

Form 3807 Local Agency Military Base Recovery Area Hiring and Sales or Use Tax Credit

Form 3808 Manufacturing Enhancement Area Hiring Credit

Form 3809 Targeted Tax Area Hiring and Sales or Use Tax Credit

Form 3811 Donated Fresh Fruits or Vegetables Credit

Schedule S Other State Tax Credit

K-1 Business Income

Use this section to enter the Schedule K-1 business income for unitary partners. Note that this section does not transfer amounts from ExacTax/1065.

Business income for unitary partners

Enter the business income in the field provided. This amount is allocated to the partners based on their profit / loss percentages. Note that the partner’s amount appears on Schedule K-1, Page 4, Table 2(A) and only is displayed if the partner is a unitary partner subject to apportionment.


386

[47]

Ptr Alloc

Ptr Alloc

Ptr Alloc

Ptr Alloc

[38]

Ptr Alloc

[38]

[37]

Ptr Alloc

[37]

[23]

Ptr Alloc

[23]

California Form 541/565/568 Sch K-1 - AMT and Other

CA Adjustments and Tax Preference Items

CAK1-4

6PCAK1-4 01 11/03/16

Activity unit number Name of entity (Mandatory) (35)[1]

PARTNERSHIP

1065 1041

Other adjustments & taxpreference items [§ 23]

12

CA14Overflow # 2016

ExacTax, Inc. CA14

Other information - (Enter on Screen CAKSup)

Depreciation adjustment post 1986 . . . . . . . . . . . . . . . . . . .17a 9a

Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . .9b

Gross income from oil, gas and geothermal properties . . .Deductions allocable to oil, gas and geothermal properties

Unrelated business taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CCF nonqualified withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest allocable to production expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20c

20c


Look-back int-completedlong term contracts [§ 37]

Look-back interest-incomeforecast method [§ 38]

Section 453(I)(3)information [§ 40]

Amortization ofreforestation costs [§ 47]

Section 453A(c)information [§ 41]

Section 1260(b)information [§ 42]

[5]

California Source

Description (29)#



Description (29)#

Description (29)#

Description (29)#


[42]

[42]

Amount [42]

Interest expense forcorporate partners [§ 39]

Description (29)#

[41]

[41]

[40]

[40]

[39]

[39]

Amount [39]

Amount [40]

Amount [41]

[47]

17b

17c

17d

17e

17f

Tax-exemptinterest income

[§ 25]

18a 14a California Law [25]Description (29)#

[29]

Ptr Alloc

[29]

18c

18bOther tax-exemptinterest income

[§ 29]

Nondeductibleexpenses

[§ 31]

Description (29)#

Description (29)#

Investment income (Automatically computed)

20b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . [33] [34]

20a

20c

20c

20c

20c

20c

20c

20c

20c

Other Information

[9][13][17][21]

[6]

[22]

[10]

[18]

[43] [44][45] [46]

[48] [49]

Ptr Alloc

Aggregate gross receipts less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20c [50] [51]

[3]

California Law

[7]

[15]

[4][8]

[12][16]

[11]

[19]

[14]

[20]

California Law [29]

California Law [31]

California Law[23] California Source [24]

[35] [36]


PtrAlloc

PtrAlloc

Ptr Alloc Ptr Alloc



[27]

[27]

[28]

[28]

Ptr Alloc

[30]

[30]

Ptr Alloc

[32]

[32]


387

Form [CA14] - California Form 541/565/568 Sch K-1 - AMT and Other

Overview

Use this form to enter passthrough information for Form 565 or 568 and Schedule K-1. ExacTax automatically transfers all applicable Form K1-5 information to this input form.

To change amounts for the California return, enter data in the applicable fields or fields in this input form.

Amounts in the California Source column are only used on Schedule K-1 and the CA Partner/Member Source Income Worksheet when Passthrough income is nonbusiness is selected on Form CAAlloc.

Adjustments and Tax Preference Items

Use this section to enter adjustments and tax preference items.

Other adjustments and tax preference items

ExacTax automatically transfers amounts from federal Form K1-5 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.


Use this section to complete the Tax-Exempt Income and Nondeductible Expenses section of Form 565 or 568 and Schedule K-1. Change the California amount only if it differs from the amount entered on federal Form K1-5.







Other Information

Use this section to complete the Other section of Form 565 or 568 and Schedule K-1. Change the California amount only if it differs from the amount entered on federal Form K1-5.


388

Look-back interest - completed long term contracts

ExacTax automatically transfers amounts from federal Form K1-5 to the field. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. ExacTax displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers

Look-back interest - income forecast method


Interest expense for corporate partners


Section 453(I)(3) information


Section 453A(c) information


Section 1260(b) information


Amortization of reforestation costs



389

California Farm - IncomeCAF (2016)

General Information

Income

General Information

Income

Cost or other basis of livestock or other resale items (Cash method)

Election to defer crop insurance proceeds to next yearCrop insurance proceeds deferred from prior year (Section 451(d))

Sales of livestock and other items

Was there material participation in the operation of this business this year? (1 = Yes, 2 = No)

Some investment is not at risk

Accounting method (1 = Cash, 2 = Accrual)

Sales of products raised (Cash method)

Agricultural activity code

Agricultural program paymentsCCC loans reported under election

CCC loans forfeitedCrop insurance proceeds received in current year

Custom hire (machine work) incomeOther income (Include gas or fuel tax credit or refund)

Beginning inventory (Accrual method)

Cost of livestock, produce, grains, and other products purchasedEnding inventory (Accrual method)

Cooperative distribution



Were payments made that would require Form(s) 1099 to be filed? (1 = Yes, 2 = No)If yes, were or will all required Form(s) 1099 be filed? (1 = Yes, 2 = No)

Total TaxableTotal

TotalTotal

Taxable

TaxableTaxable

Principal crop or activityDescription

Unit

State1

2

3

4

5

6

78

9

10

11

12

13

14

15

16 17

18 19

20

21

22 23

24 25

26

27

28

29

30

31

32

CAF CA15A



390

Form [CA15A] - California Farm - Income

Overview

Use this form to complete the California version of federal Schedule F. ExacTax automatically transfers all applicable Schedule F information, income, and deductions from federal Form F to the fields in this input form.

ExacTax transfers total farm income to Schedule F using California amounts, which are then used to calculate Form 565, Page 1, lines 6 and 7 or Form 568, Page 3, Schedule B, lines 6 and 7. If the farm income is specially allocated, ExacTax transfers the amount to Form 565, Page 4 or 568, Page 5, Schedule K, line 11b / 11c, Total other income / Total other loss. Farm income (loss) will need to be re-allocated if specially allocated on the federal return.


391

California Farm - ExpensesCAF2 (2016)

ExpensesExpenses

Description

Seeds and plantsRepairs and maintenanceRent or lease ‐ other (land, animals, etc)

Rent or lease ‐ vehicles, machinery, and equipment

Storage and warehousing


Gasoline, fuel and oilFreight and truckingFertilizer and limeFeedEmployee benefits other than pension and profit‐sharing


Supplies

Veterinary, breeding, and medicine

Depreciation expense (Force)Custom hire (machine work)Conservation expensesChemicalsCar and truck expense

Pension and profit‐sharing plansLabor hired (Enter gross wages less employment credits)

Interest ‐ otherInterest ‐ mortgage (paid to banks, etc)Insurance (other than health insurance)

Other expenses

Meals (100% subject to Department of Transportation 80% limit)

TaxesUtilities

Meals and entertainment (100% subject to 50% limit)

Guaranteed payments

State

Unit



1

2 4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

CAF2 CA15B



392

Form [CA15B] - California Farm - Expenses

Overview

Use this form to complete the California version of federal Schedule F. ExacTax automatically transfers all applicable Schedule F information, income, and deductions from federal Form F-2 to the fields in this input form. The amounts in the Depreciation expense (Force) and Amortization (Force) fields transfer to this input form only if no data is entered in detailed asset data entry.

Depreciation expense (Force) / Amortization (Force)

When using detailed asset data entry, ExacTax determines the depreciation and amortization expense for each farm activity. If the depreciation or amortization amount is incorrect, use the Depreciation expense (Force) or Amortization (Force) field in this input form. However, it is strongly recommended that the amount is changed in detailed asset data entry to ensure Form 3885P / 3885L and Schedule F for California are correct. Note that if amounts are entered in detailed asset data entry, the depreciation or amortization forced in federal Form F do not appear in these fields.

If detailed asset data entry is not used and if the state depreciation or amortization expense differs from the amount entered

in ExacTax/1065, use Form CADepr to enter depreciation and amortization expense.

Taxes

ExacTax transfers the taxes deducted in federal Form F to this field. To classify a field item as nondeductible, enter the appropriate type code from the following table, or see the fieldview list of available options.

Type Code



Transfers to Schedule F, Page 1, line 29

N Nondeductible Transfers to Form 565, Page 5, Schedule M-1, line 4 and Page 4, Schedule K, line 18c (Form 568, Page 6, Schedule M-1, line 4 and Page 5, Schedule K, line 18c)


393

California Farm Rental - IncomeCAFR (2016)

General Questions

Income

General Questions

Income

Was there active participation in the operation of this farm this year?(1 = Yes, 2 = No)

CCC loans forfeited ‐ taxableCrop insurance proceeds received in current year ‐ totalCrop insurance proceeds received in current year ‐ taxableElection to defer crop insurance proceeds to next yearCrop insurance amount deferred from prior yearOther income (Include gas or fuel tax credit or refund)

Income from production of livestock, produce, grains, and other crops

Include net income (loss) in calculation for section 179 business income

Description

Cooperative distributions ‐ totalCooperative distributions ‐ taxableAgricultural program payments ‐ totalAgricultural program payments ‐ taxableCCC loans reported under electionCCC loans forfeited ‐ total

Sale of property


AddressCity, state, zip codeProvince or statePostal codeForeign country

Unit

Other (specify)Type of property (4 = Commercial, 5 = Land)

1

2 4

5

6 7 8

9

10

11 12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

CAFR CA16A



394

Form [CA16A] - California Farm Rental - Income

Overview

Use this form to complete the California Farm Rental Income and Expenses Worksheet. ExacTax automatically transfers all applicable Farm Rental Income and Expenses Worksheet information, income, and deductions from federal Form 4835 to the fields in this input form. The total farm rental gross income and expense is transferred to CA Form 8825. Farm rental income (loss) will need to be re-allocated if specially allocated on the federal return.


395

California Farm Rental - ExpensesCAFR2 (2016)

ExpensesExpenses

Repairs and maintenance

Conservation

Rent or lease ‐ other (land, animals, etc)

Chemicals

Rent or lease ‐ vehicles, machinery, and equipment

Car and truck expenses

Description

Freight and trucking

Utilities

Fertilizer and lime

Taxes

Feed

Supplies

Employee benefits other than pension and profit‐sharing

Storage and warehousing


Seeds and plants

Custom hire (machine work)

Pension and profit sharing plans

Guaranteed paymentsMeals (100% subject to Department of Transportation 80% limit)

Labor hired (Enter gross wages less employment credits)

Meals and entertainment (100% subject to 50% limit)

Interest ‐ other


Interest ‐ mortgage (paid to banks, etc)


Insurance (other than health insurance)

Other expenses

Gasoline, fuel, and oil

Veterinary, breeding, and medicine

State

Unit



1

2 4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

CAFR2 CA16B



396

Form [CA16B] - California Farm Rental - Expenses

Overview

Use this form to complete the California Farm Rental Income and Expenses Worksheet. ExacTax automatically transfers all applicable California Farm Rental Income and Expenses Worksheet information, and income from federal Form 4835-2, to the fields in this input form. The amount in the Depreciation expense (Force) and Amortization (Force) fields only transfer to this input form if no data is entered in detailed asset data entry.

Depreciation expense (Force) / Amortization (Force)

When using detailed asset data entry, ExacTax determines the depreciation and amortization expense for each farm rental activity. If the depreciation or amortization amount is incorrect, use the Depreciation expense (Force) or Amortization (Force) fields in this input form. However, it is strongly recommended that the amount is changed in detailed asset data entry to ensure that Form 3885P or 3885L and California Farm Rental Income and Expenses Worksheet are correct. Note that if amounts are entered in detailed asset data entry, the depreciation or amortization forced in federal Form 4835 does not appear in these fields.



Taxes

ExacTax transfers the taxes deducted in federal Form 4835-2 to the field. To classify a field item as nondeductible, enter the appropriate type code from the following table, or see the fieldview list of available options.

Type code



Transfers to California Farm Rental Income and Expenses Worksheet, line 27



397

California Other Sale and Depreciation InformationCAOthAst (2016)

Schedule D-1 - Other Information

Depreciation - Section 179

Schedule D-1 - Other Information

Depreciation - Section 179

Business income limitation (Force)

Recapture of section 179 expense deduction

Section 179 expense deduction allowable in prior yearsIf different from federal

Section 280F depreciation allowable in prior yearsSection 179 recomputed depreciation

Section 280F recomputed depreciation

Total cost of section 179 property placed in service this year (Force)Maximum dollar limit (Force)


1

2

3

4

5

6

7

8

CAOthAst CA17



398

Form [CA17] - California Other Sale and Depreciation Information

Overview

Use this form to enter other information to complete Schedule D-1, Form 3885P / 3885L and the CA Depreciation and Amortization Activity Worksheet. If information transferred from ExacTax/1065 does not require additional data or coding, ExacTax/1065-CA shows it on the form only, not in the input form.

Enter California Schedule D-1, Other Information amounts in the fields only when there is a difference between corresponding federal and state amounts. If these fields are blank, the California amount automatically defaults to the federal amount. The CA Depreciation - section 179 amounts do not default to the federal amounts and must be re-entered.

Total cost of section 179 property placed in service this year (Force) / … / Business income limitation (Force)

If desired, force ExacTax to use a specified section 179 expense amount. To do so, enter the desired amount, including 0 (zero), in the Section 179 expense (Force) field in Form CAK-2. If the Section 179 expense (Force) field is blank, ExacTax uses the calculated section 179 expense amount. ExacTax calculates section 179 expense as described here.

Detailed asset data entry determines the qualified section 179 property placed in service in the current year. If the cost of qualified assets exceeds $200,000, ExacTax limits the total allowable expense for the year as required. Force the total cost of section 179 property placed in service this year by entering an amount in the Total cost of section 179 property placed in service this year (Force) field.

ExacTax then calculates the section 179 expense amount by first limiting the current-year amount to $25,000. It adds that amount to the amount in the Carryover from prior year field and then applies the $25,000 and $200,000 limitations. Force the maximum dollar limitation by entering an amount in the Maximum dollar limit (Force) field. Finally, ExacTax limits the result to business income.

ExacTax defines business income as ordinary income (Schedule K, line 1) plus net other rental income (line 3) plus net royalty income (line 7) plus net 1231 gains (line 10) plus guaranteed payments (line 4). To include a particular rental real estate activity in the business income calculation, mark the Include net income (loss) in calculation for section 179 business income field in Form CARent and the Include net income (loss) from rental real estate in section 179 business income field in CAK1. Force the business income limitation by entering an amount in the Business income limitation (Force) field.


399

California Partner's K-1 ItemsCAMisc (2016)

Partners' Percentages




Ownership of capital ‐ before changeOwnership of capital ‐ end of year

AMT depreciation:Total depreciation

Force to all K‐1's (1 = Only for corporate/partnership partners, 2 = Always, 3 = Never)

ACE depreciation:Post 1997 property1990 ‐ 1997 property1987 ‐ 1989 property

Profit sharing ‐ before changeProfit sharing ‐ end of yearLoss sharing ‐ before changeLoss sharing ‐ end of year

1981 ‐ 1986 propertySec 168(f)(1)‐(4) propertyOther propertyBasis adjustment on disposition


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CAMisc CA18



400

Form [CA18] - California Partner's K-1 Items

Overview

Use this form to complete the partners’ percentages and supplemental information for California Schedule K-1.


ExacTax uses the information entered in this section to determine the percentages that print on Schedule K-1(565), Item D or Schedule K-1(568), Item C.


ExacTax uses the information in this section to complete Schedule K-1.

AMT / ACE depreciation

Information is automatically transferred from detailed asset data entry to these fields. The calculated amounts are the differences between the State and ACE treatments. This information prints for all corporate and partnership partners on Schedule K-1, line 20c, Other information.

Force to all K-1’s

The information in the above fields automatically prints for corporate and partnership partners on Schedule K-1, line 20c, Other information. Enter the appropriate code from the following table, or see the fieldview list of available options to change how the information is displayed.

Code Description

1 Only for corporate / partnership partners (default)

2 Always

3 Never


401

California SalesCASale (2016)

Schedule D-1 and Form 3805E - General Information

Sale Information

Schedule D-1, Part III - Recapture

Form 3805E - Current Year Installment Sale

Form 3805E - Related Party Installment Sale Information

Schedule D-1 and Form 3805E - General Information

Sale Information


Form 3805E - Current Year Installment Sale

Form 3805E - Related Party Installment Sale Information

1254 31(a)

1255 32(a)

Form

Unit

Description

Treatment (A code should be manually entered for all assets not in detailed asset data entry)

Section 1250 propertyGross proceeds reported on Form 1099‐S (Schedule D‐1, line 1)Disposition due to casualty or theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

State

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable

Additional depreciation after 1976Applicable percentage (If not 100%) (xxx.xx)

Additional depreciation after 1970Soil, water and land clearing expensesApplicable percentage (If not 100%) (xxx.xx)

Intangible drilling and development costsApplicable payments excluded from income under section 126

Mortgage and other debts the buyer assumedCurrent year payments received



Sale to related partyPostponed gain due to casualty/theft

1250 29(a)

29(b)

29(d)

1252 30(a)

30(b)

State does not conform to section 179 QRP treatment

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23

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40

CASale CA19



402

Form [CA19] - California Sales

Overview

Use this form to enter asset sale information for Schedule D-1 and current year installment sales for Form 3805E. Asset sale information transfers directly to Form CASale from federal Form Sale. Note that Form CAOthAst is used to enter additional information needed to calculate Schedule D-1, and Form CAInstPY is used to enter prior-year installment sale information.

From this form, ExacTax reads the dates of acquisition and sale to determine the following information: short-term and long-term transactions, the appropriate part of Schedule D-1 or Form 3805E on which to report sales, and whether the transaction is a current-year installment sale.

This form is designed to enable entry of asset sale information in one place and have ExacTax determine the proper category (or categories) to report each sale on the return. Because there is not a one-to-one correspondence between the asset position in the input form and on the form, ExacTax dynamically allocates assets to the appropriate form position.

Note: This input form may or may not apply to ExacTax.

Treatment

The code in this field controls where the information appears on Schedule D-1 or California Schedule D. The table that follows shows what each Force code means and describes where ExacTax places the information. Enter these codes directly or select them from the fieldview. Note that detailed asset data entry automatically enters the appropriate code based on the nature of the asset. Codes S and L are only applicable if information is entered in the CA Form 3805E, Current Year Installment Sale section. If codes S and L are used and information has not been entered for the current year installment sale, no information will transfer to Schedule D-1 or California Schedule D.


1 Schedule D-1, Part I Transfers to Schedule D-1, Part I, line 2

2 Schedule D-1, Part II Transfers to Schedule D-1, Part II, line 10

3 Schedule D-1, Part III Transfers to Schedule D-1, Part III

S Schedule D, short-term installment sale

Transfers to Schedule D, line 2 when information exists in current year installment sale fields

L Schedule D, long-term installment sale

Transfers to Schedule D, line 2 when information exists in current year installment sale fields


These fields pertain to Schedule D-1, Part III. The numbers shown to the left of the items, such as 28(a), refer to line numbers on Schedule D-1, Page 2. Do not use this section to enter assets that were sold at a loss. If amounts are entered in detailed asset data entry, ExacTax displays state amounts for Schedule D-1, Part III, line 28(a) and federal amounts for lines 29(a), 29(b), 29(d), 30(a), 30(b), 31(a), and 32(a).


403

California Like-Kind ExchangesCA8824 (2016)

General Information




General Information




State

Treatment (A force code should be manually entered for all assets not in detailed asset data entry)

Date like‐kind property given up was acquiredDate property transferred to other partyDate the like‐kind property received was identifiedDate like‐kind property received from other party

Fair market value of other property given up

Form

Unit

Property given up

Property received

RelationshipDuring this tax year, did related party sell or dispose of the property received? (1 = Yes, 2 = No)During this tax year, was the like‐kind property received sold or disposed of? (1 = Yes, 2 = No)Special condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)Explanation if no tax avoidance purpose

Adjusted basis of other property given upCash received


Liability assumedCash paidAdjusted basis of like‐kind property given upLiability given upExchange expensesTotal potential ordinary income under recapture rules

Name of related partyAddressCity, state, zip codeIdentifying number

Do not complete Form 6252 for installment obligation received on exchange



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23

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31

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40

CA8824 CA20A



404

Form [CA20A] - California Like-Kind Exchanges

Overview

Use this form to complete the California version of federal Form 8824. Note that like-kind exchange information transfers directly to this form from detailed asset data entry.

Note:

Treatment

The code in this field controls where the information appears on Schedule D-1 or California Schedule D. The table that follows shows what each force code means and where ExacTax places the information. Enter a code directly or select it from the fieldview. Note that detailed asset data entry automatically enters the appropriate code based on the nature of the asset.


1 Schedule D-1, Part 1 Transfers to Schedule D-1, Part 1, line 5

2 Schedule D-1, Part II Transfers to Schedule D-1, Part II, line 16

S Schedule D, short-term

Transfers to Schedule D, Part I detail with the description "Like-Kind Exchange from Form 8824"

L Schedule D, long-term

Transfers to Schedule D, Part II detail with the description "Like-Kind Exchange from Form 8824"


405

California Like-Kind Exchanges Outside CaliforniaCA3840 (2016)

General Information



Schedule A

General Information



Schedule A

Property given up

Initial FTB 3840Amended FTB 3840Final FTB 3840Prior year exchange (Enter year)

Unit

Form

Property received

Properties given up Properties received


Fair market value of other (not like‐kind) property received

Total potential ordinary income under recapture rulesExchange expensesLiability given upAdjusted basis of like‐kind property given upCash paidLiability assumed


Cash receivedAdjusted basis of other property given upFair market value of other property given up

Date like‐kind property received from other partyDate the like‐kind property received was identifiedDate property transferred to other partyDate like‐kind property given up was acquired

Identifying numberName of related party

Real propertyPersonal property

Apportionment percentage for year of exchange (Force)

California LawFederal Law

Taxable year exchange occurred

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20

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23 24

25 26

27 28

29 30

31 32

33 34

35 36

37 38

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41 42

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45 46

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48

49

CA3840 CA20B



406

Form [CA20B] - California Like-Kind Exchanges Outside California

Overview

Use this form to enter asset information for Form 3840. All depreciation and amortization information transfers directly to Form CA3840 from the ExacTax asset module for like-kind exchange transactions that are reported on Form 8824. This form is populated when the situs of the original asset is in California but the situs of the exchanged is outside of California. A unit of Form 3840 calculates only when the Real property, or both the Real property and Personal property fields, are marked.

General Information

Use this section to complete Form 3840, Page 1. A separate unit of Form 3840 prints for each unit of form data that has the Real property field marked, with or without the Personal property field marked; thus, the form is not required if only personal property is exchanged.


This information transfers from the corresponding unit of Form CA8824.


This information transfers from the corresponding unit of federal Form 8824 to both the Federal law and California law columns. The Franchise Tax Board wants Form 3840, Part II completed using federal numbers. Enter California amounts in the California law column. This will be used for proforma next year to provide detail necessary for any difference between federal and California law amounts.

Schedule A

Use this section to complete Form 3840, Page 2, Schedule A. Multiple pages will print to accommodate all the properties listed.

Properties given up

Enter detail about the property(ies) given up and received in the field. Enter the ownership percentage between 0 percent and 100 percent. For the address of the property, either enter address, city, state, and ZIP code, or if no street address, enter state, parcel number, and county.

Properties received

Enter the apportionment percentage for the year of exchange, between 0 and 100. If you leave this field blank, ExacTax uses the apportionment percentage from Schedule R.


407

California Prior Year Installment SaleCAInstPY (2016)

General Information




General Information




Commissions and other expenses of saleIncome recapture from Schedule D‐1

Prior year gross profit percentage (Force) (xxx.xxxx)Current year payments receivedPrior year payments received

Total ordinary income to recapture (Section 1252, 1254 or 1255 property only)

Ordinary income previously recaptured

Related party nameAddressCity, state, zip codeIdentifying number

Description Form

Unit

Treatment

State

Date acquiredDate soldGross sales price or insurance proceeds receivedMortgage and other debts the buyer assumedCost or other basisDepreciation allowed or allowable

Was the property sold a marketable security? (1 = Yes, 2 = No)Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)


Balance of unrecaptured section 1250 gain to be taxed

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19

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28

29

30

CAInstPY CA21



408

Form [CA21] - California Prior Year Installment Sale

Overview

Use this form to enter prior-year installment sale information for Form 3805E. Enter prior-year installment sale information for sales in the Section 179 expense deduction field in Form CASalePT.

Note: Use detailed asset data entry or Form CASale to enter current-year installment sales. Current-year installment sales entered in this form are not correctly reported on Form 3805E.

From Form CAInstPY, ExacTax reads the dates of acquisition and sale to determine the following information: short-term and long-term transactions, the appropriate part of Schedule D-1, Form 3805E, or Schedule D on which to report sales, and whether the transaction is a prior-year installment sale.

Form CAInstPY is designed to enable entry of asset sale information in one place and have ExacTax determine the proper category (or categories) in which to report each sale on the return. Because there is not a one-to-one correspondence between the position of an asset in the input form and on the form, ExacTax dynamically allocates assets to the appropriate form position.

Asset information entered directly on the form does not transfer back to the input form. It is strongly recommended that asset information is not entered directly on the form. Enter prior-year installment sale information in this input form.

Treatment

The force code describes the nature of the asset and tells ExacTax where to transfer the information on Schedule D-1 or California Schedule D. The force codes are shown in the fieldview and in the following table.

Code Description

1 Schedule D-1, Part I

2 Schedule D-1, Part II

3 Schedule D-1, Part III

S Schedule D, short-term installment sale

L Schedule D, long-term installment sale


409

California Prior Year Casualty and Theft LossCA4684PY (2016)

General Information

Business and Income Producing Properties


General Information



Adjusted basis

Property description is required for Form 4684, line 19, and calculation of the applicable column

Fair market value after lossFair market value before loss

Cost or basisDate acquiredForce holding period (1 = Short‐term, 2 = Long‐term)


Description property D

State


Form

Unit

Postponed gain

Description property CDescription property BDescription property A

Description replacement property ADescription replacement property BDescription replacement property CDescription replacement property D

Date acquiredCost of replacement property

Total net reimbursementAccumulated depreciation


A B C D

Enter replacement property acquired within specified replacement period

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59

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61

62

63

64

65

CA4684PY CA22



410

Form [CA22] - California Prior Year Casualty and Theft Loss

Overview

Use this form to complete the California version of Form 4684, Casualties and Thefts. Amounts that appear in this form are automatically transferred from federal Form 4684PY.


411

California Form 541/565/568 K-1 - Sale of 179 AssetCAK1Sale (2016)

General Information

Sale Information




Gross sales price/insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable excluding section 179Section 179 expense deduction

Form

Unit

Description

Special condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)



Casualty occurrence descriptionFair market value before lossFair market value after lossProperty type (1 = Business, 2 = Income producing)

Sale is a prior year installment saleMortgage and other debts the buyer assumedTotal current year payments receivedPrior year payments received

Related party nameAddressCity, state, zip codeIdentifying numberWas the property sold a marketable security? (1 = Yes, 2 = No)Date of second sale


State

Disposition due to casualty or theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

Date acquiredDate sold




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25

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14 15

16 17

18 19

20 21

22 23

24

25 26

27 28

29 30

31

32

33 34 35

36

37

38

39

40

41 42

45

46 47

48 49

50

CAK1Sale CA23



412

Form [CA23] - California Form 541/565/568 K-1 - Sale of 179 Asset

Overview

Use this form to enter current-year sale and prior-year installment sale information for asset dispositions that were separately stated from a passthrough entity in which the partnership is a partner. The CA Schedule D-1 Sales of Business Property is not completed for these types of asset dispositions. Instead, each asset disposition is separately reported to the partners on Form 565 or 568 and Schedule K-1. Amounts that appear in Form CAK1Sale are automatically transferred from federal Form K1Sale.

Treatment

Use the fieldview to enter the force code that describes the nature of the asset.


413

California Sale of Section 179 AssetsCASalePT (2016)

General Information

Sale Information




Form

Unit

Description


Disposition due to casualty or theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

State

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowable excluding section 179Section 179 expense deduction

Sale is prior year installment saleMortgage and other debts the buyer assumedCurrent year payments receivedPrior year payments received


Explanation if no tax avoidance purpose:Selling price of property sold by related party



Fair market value after lossFair market value before lossCasualty occurrence description




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17 18

19 20

21 22

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25

26 27

28 29

30 31

32

33

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41

42 43

46

47 48

49 50

51

CASalePT CA24



414

Form [CA24] - California Sale of Section 179 Assets

Overview

All sale information transfers directly into this form from ExacTax detailed asset data entry and then transfers to the relevant forms.

Note:

Use this form to enter information for current year or prior year installment assets that were sold or otherwise disposed of for which a federal section 179 expense deduction was previously passed through to the partners. Schedule D-1 is not completed for these types of asset dispositions. Instead, each asset disposition is separately reported on Form 565 and Form 568 and to the partners on Schedule K-1.

Treatment

The asset module automatically enters the appropriate code based on the nature of the asset. Use the fieldview to override the code that ExacTax enters, if desired.


415

California Depreciation and AmortizationCADepr (2016)

Depreciation and Amortization ExpenseDepreciation and Amortization Expense

Business activity Form

Unit

CA depreciation for current year's acquisitionsCA amortization for current year's acquisitionsCA depreciation for prior years' acquisitionsCA amortization for prior years' acquisitionsSection 179 expense

1

23

4

5

6

7

8

CADepr CA25



416

Form [CA25] - California Depreciation and Amortization

Overview

Use this form to enter and/or verify information necessary to complete Form 565, Page 1 or Form 568, Page 3; Schedule B; Schedule A; Form 8825; Schedule F; the Farm Rental Income and Expenses Worksheet; and the CA Rent and Royalty Schedule. All depreciation and amortization information transfers directly into Form CADepr from detailed asset data entry and then transfers to Form 3885P or 3885L and other relevant forms.

If detailed asset data entry is not used and the California depreciation or amortization amounts for ordinary income, Schedule A, Form 8825, Schedule F, the Farm Rental Income and Expenses Worksheet, or the CA Rent and Royalty Schedule need to be modified, enter the information in this input form. This information does not transfer from federal Form 4562.

ExacTax

Depreciation and Amortization Activity Worksheet

ExacTax prints a CA Depreciation and Amortization Activity Worksheet (for Form 3885) for each activity entered in Form CADepr. This worksheet may be attached to the activities form or schedule for submission to the state taxing authority.

Depreciation and Amortization Expense

Use this section to enter depreciation and amortization expense by activity.

Business activity / Form / Unit

ExacTax transfers all information for the Business activity, Form, and Unit fields from detailed asset data entry. If detailed asset data entry is not being used, enter the form code and unit number of the activity that the depreciation and/or amortization should transfer to. This ensures that the depreciation and/or amortization entered transfers to the correct activity.

Note: You can select the form type from the fieldview.

CA depreciation / amortization for current year’s / prior years’ acquisitions

ExacTax transfers information from detailed asset data entry into the field that corresponds with each activity entered. Enter information in these fields to override the transferred information.

Section 179 expense

When manually entering Section 179 expense, enter the unlimited Section 179 expense. ExacTax automatically limits the total section 179 expense to California business income. See the Section 179 expense (Force) field in Form CAK-2 for the amounts used to calculate California business income.

Note: Use Form CAOthAst to enter the Section 179 carryover amount, or to change the cost of property for the limitation calculation.


417

California Power of AttorneyCAPOA (2016)

General Information

Representative Information

General Information


Telephone numberRepresentative name #2Representative addressCity, state, zip codeCAF number PTINTelephone number Fax numberNew: Address Telephone number

Title of person signing POAPrinted name for signature

Representative name #1Representative addressCity, state, zip codeCAF number PTINTelephone number Fax number

New: Address

Authorize all matters for four years

Authorize representative to perform additional acts:

Other acts authorizedRetain prior power of attorney

Tax years or income periods covered by the POA:Calendar yearFiscal and short‐period income years: Year Begins on Year Ends on

Add another representativeDelete a representativeReceive, but not endorse, refund check

Nontax issues:Vehicle registration Court‐ordered debt

Tax years or income periods covered to receive confidential information only:Calendar yearFiscal and short‐period income years:

Email address

Year Ends onYear Begins on

Period 1Period 2Period 3Period 4

Period 4Period 3Period 2Period 1

Email addressEmail address

Email address

Active duty military member in combat zoneEstate or TrustFirst‐time filer for CaliforniaDocumented physical/mental impairment

Other (explain):Do not have a PTIN, EFIN, California CPA or CTEC numberNon‐professional representativeLocated in a declared disaster area

Exceptions for paper filing:

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31 32

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51

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59 60 61

62

CAPOA CA26



418

Form [CA26] - California Power of Attorney

Overview

Use this form to complete Form 3520, Power of Attorney. ExacTax automatically transfers all applicable Form POA information to this input form. To change information for the California return, enter it directly in the applicable fields or fields.

Note: Form 3520 only prints if information is entered in the Tax years or income periods covered by the POA fields in the CA Power of Attorney - General Information section.

General Information

Use this section to enter general information about the power of attorney.

Authorize all matters for four years

Enter X to authorize the representatives to represent the entity regarding any tax matters for four years.

Tax years or income periods covered by the POA

Enter the specific tax years covered by this power of attorney.


Use this section to enter information about the representatives receiving authorization.


419

California Schs K and K-1 - Supplemental ItemsCAKSup (2016)

Supplemental ItemsSupplemental Items

PrtAmount Allocate?

Specially

* Print Condition: Enter one of the following codes in the fields in this column: Blank = Schedule K and Schedule K‐1, 1 = Schedule K only, 2 = Schedule K‐1 only

Description Cdn*


1 2 3 4

5 6 7 8

9 10 11 12

13 14 15 16

17 18 19 20

21 22 23 24

25 26 27 28

29 30 31 32

33 34 35 36

37 38 39 40

41 42 43 44

45 46 47 48

49 50 51 52

53 54 55 56

57 58 59 60

61 62 63 64

65 66 67 68

69 70 71 72

73 74 75 76

77 78 79 80

CAKSup CA27



420

Form [CA27] - California Schs K and K-1 - Supplemental Items

Overview

Use this form to enter supplemental information for California Schedules K and K-1. These are items that you want distributed to partners but do not want to affect the partners’ capital accounts. ExacTax prints the descriptive text and amounts, if any, in statement attached to Schedules K and K-1, line 20c.

Supplemental Items

ExacTax uses information in this section to complete California Schedules K and K-1.

Description

Enter a description of up to one line in the Description field. If more space is needed, access the related field by pressing CTRL+E. ExacTax uses the descriptions to generate a field item in the appropriate schedule as indicated by the print condition specified in the Prt Cdn* field. The description appears in a statement attached to Schedule California Schedule K-1, line 20c, and/or on a printed schedule attached to California Schedule K, line 20c. In addition, if an item is specially allocated, ExacTax transfers the first 45 characters of the first line of the Description field to Partner Data Entry. To view this information, choose View > Partner Information.

Amount

Enter an appropriate amount. Note that this amount is not part of the Description field field; any amounts entered as text in the field do not transfer to this field.

Specially Allocate

Click the Ptr Alloc button to specially allocate an item to the partners using ratios different from the profit-sharing percentages.

Prt Cdn*

You have the option to include the item on California Schedules K and/or K-1. The default print condition is to print the item in both schedules. Enter a code from the following table, or see the fieldview list of available options.

Code Print Location

Blank Both Schedules K and K-1 (default)

1 Schedule K only

2 Schedule K-1 only


421

California Allocated AmountsCAAlloc (2016)

Allocated Items

Nonbusiness Income from Schedule K

Sale of Nonbusiness Assets

Nonbusiness Expenses from Schedule K

Allocated Items




Rental real estate activities are nonbusiness (Screen Rent, Type of activity = 1)

Passthrough income is nonbusiness (Amounts in California source column on Screen K1 are used on Schedule K‐1)

TotalEverywhere

Total WithinCalifornia

Guaranteed paymentsInterest incomeDividendsRoyalty income from intangiblesRoyalty income from tangibles (Not entered on Screen CARent)Other portfolio income from intangiblesOther portfolio income from tangiblesTotal other income from intangiblesTotal other income from tangiblesTotal other loss from intangibles (Enter as negative)Total other loss from tangibles (Enter as negative)

Section 1231 losses from intangible assets (Enter as negative)

Short‐term capital gains (losses) from tangible assetsShort‐term capital gains (losses) from intangible assets

Section 1231 gains from tangible assetsSection 1231 gains from intangible assetsSection 1231 losses from tangible assets (Enter as negative)

CaliforniaTotal Within

EverywhereTotal

Long‐term capital gains (losses) from intangible assetsLong‐term capital gains (losses) from tangible assets

Royalty activities are nonbusiness (Screen Rent, Type of activity = 3) Other rental activities are nonbusiness (Screen Rent, Type of activity = 2 or blank)

Do not include amounts from lower tiered partnerships. Enter these amounts in Screen K1.


Short‐term cap gain (loss) from interest in ptrship or LLC

Long‐term cap gain (loss) from interest in ptrship or LLC

Section 179 expenseInvestment interest expenseSection 59(e) expensesDeductions related to portfolio income Other deductions


TotalEverywhere

Total WithinCalifornia


Enter apportionment information in View > Apportionment

1

2

3

4

5 67 8

9 1011 12

13 1415 16

17 1819 20

21 2223 24

25 2627 28

29 3031 32

33 3435 36

37 3839 40

41 4243 44

45 4647 48

49 5051 52

53 5455 56

57 5859 60

61 6263 64

65 6667 68

69 7071 72

73 7475 76

77 7879 80

81 8283 84

85 8687 88

89 90 91 92

93 94 95 96

97 98 99 100

101 102 103 104

105 106 107 108

CAAlloc CA28



422

Form [CA28] - California Allocated Amounts

Overview

Use this form to complete Schedule R, Schedule K-1, and the CA Partner/Member Source Income Worksheet.

Allocated Items

Use this section to indicate activities are nonbusiness.

Rental real estate activities are nonbusiness

Enter X to indicate that rental real estate activities are nonbusiness. ExacTax automatically allocates farm rentals and real estate rentals on Schedule R, Schedule R-3, and Schedule K-1 based on the state postal code entered in Forms CA4835 and CARent. If this field is not marked, ExacTax uses the total amounts subject to California law multiplied by the apportionment percentage to calculate the state source income.

Other rental activities are nonbusiness

Enter X to indicate that other rental activities are nonbusiness. ExacTax automatically allocates other rentals on Schedule R, Schedule R-3, and Schedule K-1 based on the state postal code entered in Form CARent. If this field is not marked, ExacTax uses the total amounts subject to California law multiplied by the apportionment percentage to calculate the state source income.

Royalty activities are nonbusiness

Enter X to indicate that royalty activities are nonbusiness. ExacTax automatically allocates royalties on Schedule R and Schedule K-1 based on the state postal code entered in Form CARent. If this field is not marked, ExacTax uses the total amounts subject to California law multiplied by the apportionment percentage to calculate the state source income.

Passthrough income is nonbusiness

Enter X to indicate that passthrough activities are nonbusiness. ExacTax uses the information entered on Forms CAK1, CAK1-2, and CAK1-4 to allocate passthrough income on Schedule R and Schedule K-1. If this field is not marked, ExacTax uses the partner’s amounts subject to California law multiplied by the apportionment percentage to calculate state source income.


Use this section to calculate nonbusiness income that was entered on Form CAK. Do not include amounts received from other passthrough entities. Enter passthrough amounts in Form CAK1.

Guaranteed payments

Enter the total nonbusiness guaranteed payments in the Total Everywhere column. ExacTax subtracts this amount from the total amount subject to California law before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax adds this amount to the apportioned business amount and displays the totals on Schedule K-1 and the CA Partner / Member Source Income Worksheet.

Interest income

Enter the total nonbusiness interest income in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 3, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California


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nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 19b, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column only displays on Schedule K-1, Page 4, Table 1.

Dividends

Enter the total nonbusiness dividends in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 2, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 19a, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column only displays on Schedule K-1, Page 4, Table 1.

Royalty income from intangibles

Enter the total nonbusiness royalty income from intangibles in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 5, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 21, and adds this amount to the apportioned business amount. The partner amount from the Within California column only displays on Schedule K-1, Page 4, Table 1.

Royalty income from tangibles

Enter the total nonbusiness royalty income from tangibles in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 5, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 21, and adds this amount to the apportioned business amount. The partner amount from the Within California column only displays on the CA Partner/Member Source Income Worksheet.

Other portfolio income from intangibles

Enter the total nonbusiness other portfolio income from intangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column only displays on Schedule K-1, Page 4, Table 1.

Other portfolio income from tangibles

Enter the total nonbusiness other portfolio income from tangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column only displays on the CA Partner/Member Source Income Worksheet.

Total other income from intangibles

Enter the total nonbusiness other income from intangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds this amount to the apportioned business amount. The partner amount from Total Within California column only displays on Schedule K-1, Page 4, Table 1.

Total other income from tangibles


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Enter the total nonbusiness other income from tangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column only displays on the CA Partner/Member Source Income Worksheet.

Total other loss from intangibles

Enter the total nonbusiness other loss from intangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and adds back the loss amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness loss amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds back the amount of the California loss to the apportioned business amount. The partner amount from the Total Within California column only displays on Schedule K-1, Page 4, Table 1.

Total other loss from tangibles

Enter the total nonbusiness other loss from tangibles in the Total Everywhere column. ExacTax includes this amount on Schedule R, line 8, and adds back the loss amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness loss amount in the Total Within California column. ExacTax includes this amount on Schedule R, line 24, and adds back the amount of the California loss to the apportioned business amount. The partner amount from Total Within California column only displays on the CA Partner/Member Source Income Worksheet.


Use this section to calculate the amounts from the sale of nonbusiness assets that were entered on Forms CAK, CAD, CASale, and Detail Asset Data Entry. Do not include amounts received from other passthrough entities. Enter passthrough amounts on Form CAK1.

Short-term capital gains (losses) from tangible assets

Enter the nonbusiness total short-term capital gains (losses) from tangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on the CA Partner/Member Source Income Worksheet and Schedule K-1, Page 4, Table 2, for unitary partners.

Short-term capital gains (losses) from intangible assets

Enter the total nonbusiness short-term capital gains (losses) from intangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.

Short-term cap gain (loss) fm interest in ptrship or LLC

Enter the total nonbusiness short-term capital gains (losses) from interest in a partnership or LLC in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 7, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 23, and adds this amount to the apportioned business amount. The partner amount


425

from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.

Long-term capital gains (losses) from tangible assets

Enter the total nonbusiness long-term capital gains (losses) from tangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on the CA Partner/Member Source Income Worksheet and Schedule K-1, Page 4, Table 2, for unitary partners.

Long-term capital gains (losses) from intangible assets

Enter the total nonbusiness long-term capital gains (losses) from intangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.

Long-term cap gain (loss) fm interest in a ptrship or LLC

Enter the total nonbusiness long-term capital gains (losses) from interest in a partnership or LLC in the Total Everywhere column. ExacTax displays this amount on Schedule R, line 7, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R, line 23, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.

Section 1231 gains from tangible assets

Enter the total nonbusiness section 1231 gains from tangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on the CA Partner/Member Source Income Worksheet and Schedule K-1, Page 4, Table 2, for unitary partners.

Section 1231 gains from intangible assets

Enter the total nonbusiness section 1231 gains from intangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and subtracts the amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds this amount to the apportioned business amount. The partner amount from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.

Section 1231 losses from tangible assets

Enter the total nonbusiness section 1231 losses from tangible assets in the Total Everywhere column as a negative amount. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and adds back the amount of the loss from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within


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California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds back the amount of the California loss to the apportioned business amount. The partner amount from the Total Within California column displays on the CA Partner/Member Source Income Worksheet and Schedule K-1, Page 4, Table 2, for unitary partners.

Section 1231 losses from intangible assets

Enter the total nonbusiness section 1231 losses from intangible assets in the Total Everywhere column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 6, and adds back the total loss amount from all income before multiplying by the apportionment percentage. Enter the California nonbusiness amount in the Total Within California column. ExacTax displays this amount on Schedule R-4 and Schedule R, line 22, and adds back the California loss amount to the apportioned business amount. The partner amount from the Total Within California column displays on Schedule K-1, Page 4, Table 1 and the CA Partner/Member Source Income Worksheet.


Use this section to allocate nonbusiness expenses to Schedule K-1 and the CA Partner/Member Source Income Worksheet.


427

California Rent and Royalty PropertiesCARent (2016)

General Questions

Income

Expenses

General Questions

Income

Expenses

Guaranteed payments

Legal and professionalInterestRepairsTaxesUtilitiesWages and salariesDepreciation (Force)Other

Amortization (Force)Meals and entertainment (100% Subject to 50% limit)

Meals (100% Subject to Department of Transportation 80% limit)

Property description

Include net income (loss) in calculation for section 179 business income (Rental real estate activities only)

Gross rents

Advertising

Gross royalties

Auto and travel

Sale of property (Force) (Rentals only)

Cleaning and maintenance

Other

CommissionsInsurance


Number of personal use daysNumber of days rented at fair rental value (If not for the full tax year)

Other (specify)Type of property (1 = Single family , 2 = Multi‐family , 3 = Vacation / short‐term rent, 4 = Commercial, 5 = Land, 6 = Royalties, 7 = Self‐rental)

Foreign countryPostal codeProvince or stateCity, state, zip codeAddress

Type of activity (1 = Rental real estate, 2 = Other rental, 3 = Royalty)

Personal use percentage, if personal use test met (Force) (xxx.xxxx) (Expenses only)

Unit


Health insurancePension and IRAsOther

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CARent CA29



428

Form [CA29] - California Rent and Royalty Properties

Overview

Use this form to complete the California version of Form 8825 and the CA Rent and Royalty Schedule. Enter detail information for rental real estate properties, other rental properties, and royalty properties. ExacTax automatically transfers all applicable rent and royalty information, income, and deductions from federal Form Rent to the fields in this input form. The Depreciation (Force) and Amortization (Force) fields only transfer to this input form if no data is entered in detailed asset data entry. ExacTax prints all properties designated as rental real estate properties on the California version of Form 8825.

All three types of properties are included on a separate CA Rent and Royalty Schedule, which detail income, expenses, and net gains (losses). Rent and royalty income (loss) will need to be re-allocated if specially allocated on the federal return.

Taxes

ExacTax transfers the taxes deducted in federal Form Rent to the field. To classify a field item as nondeductible, enter the appropriate type code from the following table, or see the fieldview list of available options.

Type Code


D Deductible Transfers to CA Rent and Royalty Schedule


Depreciation (Force) / Amortization (Force)

When using detailed asset data entry, ExacTax determines the depreciation and amortization expense for each rental activity. If the depreciation or amortization amount is incorrect, use the Depreciation (Force) or Amortization (Force) fields in this input form. However, it is strongly recommended that the amount is changed in detailed asset data entry to ensure that Form 3885P / 3885L, Form 8825 and the CA Rent and Royalty Schedule for California are correct. Note that if amounts are entered in detailed asset data entry, the depreciation or amortization forced in federal Form Rent do not appear in these fields.




429

California Like-Kind Exchange of Section 179 AssetsCA8824PT (2016)

General Information




General Information




State

Unit

FormProperty given up


Explanation if no tax avoidance purposeSpecial condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)

During this tax year, was the like‐kind property received sold or disposed of? (1 = Yes, 2 = No)During this tax year, did related party sell or dispose of property received? (1 = Yes, 2 = No)RelationshipIdentification numberCity, state, zip codeAddress of related partyName of related party

Exchange expenses

Liability given up

Like‐kind property given up:Cash paidLiability assumed


Cash receivedAdjusted basis of other property given upFair market value of other property given up

Date like‐kind property received from other partyDate like‐kind property received was identifiedDate property transferred to other partyDate like‐kind property given up was acquired


Property received

Cost or other basisDepreciation allowed or allowable excluding section 179Section 179 expense deduction passed through

Installment obligation received in like‐kind exchangeFair market value of other (not like‐kind) property received


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23

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CA8824PT CA30



430

Form [CA30] - California Like-Kind Exchange of Section 179 Assets

Overview

All sale information transfers directly into this form from ExacTax detailed asset data entry and then transfers to the relevant forms.

Use this form to enter information for current year or prior year installment assets that were exchanged for which a federal section 179 expense deduction was previously passed through to the partners. Schedule D-1 is not completed for these types of asset dispositions. Instead, each asset disposition is separately reported on Form 565 or 568 and to the partners on Schedule K-1.

Treatment

The asset module automatically enters the appropriate code based on the nature of the asset. Use the fieldview to override the code that ExacTax enters, if desired.


431

California Electronic Filing InformationCAELF (2016)

General Information

Electronic Funds Withdrawal Information

General Information


Requested payment date for annual tax payment (next year's LLC Form 3522) (Mandatory)

Suppress California electronic file or extension when filing federal return electronically

Requested payment date for return (Mandatory if using the electronic funds withdrawal method)

Amount of tax payment (Force) (If different from balance due on return)

Requested payment date for estimated fee (next year's LLC Form 3536) (Mandatory)

Amount of estimated fee (Force) (If different from estimate)

Signed Form 8453 has been received (For filing instructions) (Links to Utilities > Electronic Filing Status)

Use Screen Bank to enter account information

Amount of annual tax payment (Force) (If different than $800)

Signature date of partner signing return (If different from federal)

Signature date of ERO (if different from partner signature date)

Electronic file waiver requested Link Online waiver

Requested payment date for extension (Mandatory if using the electronic funds withdrawal method)

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CAELF CA31



432

Form [CA31] - California Electronic Filing Information

Overview

Use this form if you are filing the state return electronically and to enter electronic funds withdrawal information.

General Information

Use this section to suppress the California electronic file when filing federal return electronically.

Suppress California electronic file when filing federal return electronically

Signed Form 8453 has been received

Enter X if you have received a signed California Form 8453-P/8453-LLC. ExacTax uses this information to determine what appears in the filing instructions. ExacTax automatically transfers the selection to the Utilities > Electronic Filing Status dialog, and the option selected in the Signature Document field in the Electronic Filing Status dialog transfers to this field.

Note: ExacTax suppresses the printing of California Form 8453-P/8453-LLC if a signed copy of the form has been received. Mark the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options tab to print California Form 8453-P/8453-LLC if a signed copy has been received.

Signature date of partner signing return

Enter the date Form 8453 is signed by the tax matters partner. If this field is blank, ExacTax uses the signature date of partner signing the return in federal Form ELF for Form 8453 and as the date signed in the California electronic file. Enter a date if the federal return is not being filed electronically or the California signature date is different than the federal.

Note: Today’s date will be used as the signature date on Form 8453 and in the electronic file if both of the federal and California signature date fields are blank and the When Form 8879 (etc.) signature date(s) (Preparer and/or Client) are not entered: use current date option is selected in Setup > Office Configuration > Print Options tab.

Signature date of ERO

Enter the date Form 8453 is signed by the ERO (electronic return originator). If this field is blank, ExacTax uses the California signature date of partner signing the return for Form 8453, if it exists. Otherwise, ExacTax uses the signature date of the ERO or partner signing the return in federal Form ELF. Enter a date if the federal return is not being filed electronically or the California signature date is different than the default.

Note: Today’s date will be used as the ERO signature date on Form 8453 if all federal and California signature date fields are blank and the When Form 8879 (etc.) signature date(s) (Preparer and/or Client) are not entered: use current date option is selected in Setup > Office Configuration > Print Options tab.


Use this section to enter electronic withdrawal information for electronically filed balance due returns.

Request payment date

Enter a withdrawal payment date to authorize automatic funds withdrawal payment in the 1065 California electronic file for the amount of the return’s balance due. If this field is blank, ExacTax will not create the funds withdrawal for the electronic file.


433

Amount of tax payment (Force)

Enter an amount if only a partial payment of the return balance due is being made through electronic funds withdrawal. If this field is blank, ExacTax uses the total balance due on the return for the electronic funds withdrawal amount.

Requested payment date for annual tax payment (next year’s LLC Form 3522)

Enter a withdrawal payment date to authorize automatic funds withdrawal for Form 3522. If this field is blank, ExacTax will not create the funds withdrawal for the electronic file.

Amount of annual tax payment (Force)

Enter an amount if only a partial payment of Form 3522 is being made through electronic funds withdrawal. If this field is blank, ExacTax uses the total balance due on Form 3522 for the electronic funds withdrawal amount.

Requested payment date for estimated fee (next year’s LLC Form 3536)

Enter a withdrawal payment date to authorize automatic funds withdrawal for Form 3536. If this field is blank, ExacTax will not create the funds withdrawal for the electronic file.

Amount of estimated fee (Force)

Enter an amount if only a partial payment of Form 3536 is being made through electronic funds withdrawal. If this field is blank, ExacTax uses the total balance due on Form 3536 for the electronic funds withdrawal amount.


434

California Casualty and Theft LossCA4684 (2016)

General Information



General Information



Unit

Form

Cost of replacement propertyDate acquiredProperty acquired from related party


Description property A

State


DCBA

Property description is required for Form 4684, line 19, and calculation of the applicable column

Date of casualty or theftCasualty or theft number

Fair market value after lossFair market value before lossTotal net reimbursement

Cost or basisDate acquired


Description property DDescription property CDescription property B

Description replacement property DDescription replacement property CDescription replacement property BDescription replacement property A

Asset number




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23

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CA4684 CA40



435

Form [CA40] - California Casualty and Theft Loss

Overview

Use this form to complete the California version of federal Form 4684, Casualties and Thefts. Amounts that appear in this form are automatically transferred from federal Form 4684.


436

California Bank InformationCABank (2016)

Account InformationAccount Information

Account numberType of account (1 = Checking, 2 = Savings)

Routing transit numberName of financial institutionSuppress direct deposit of refund (Form 540NR)

Account is located outside of the United States

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2

3

4

5

6

CABank CA45



437

Form [CA45] - California Bank Information

Overview

Use this form to complete banking information on Form 8453-P, Form 8453-LLC, and Form 540NR. ExacTax automatically transfers all federal Form Bank information. To change information for the California return, enter it directly in the fields.

Account Information

Use this section to enter bank information.

Suppress direct deposit of refund

Enter X to suppress the direct deposit of a refund. If this field is marked, the banking information will not be completed on Form 540NR.


438

California Real Estate Withholding ReceivedCA593 (2016)

593 Facsimile

593 Escrow or Exchange Information

593 Preparer Information

593 Facsimile



Secretary of State file number

E = Bank and Financial Corporation, F = S Corporation, G = Financial S Corporation)

Property city, state, zip code

Amended


Telephone number

Preparer name

Escrow business namePreparer title

Amount withheld from seller

Withholding calculation method (A = Total Sales Price, B = Individual, C = Non‐California Partnership, D = CorporationType of transaction (A = Conventional Sale or Transfer, B = Installment Sale Payment, C = Boot, D = Failed Exchange)

Date of transfer, exchange completion or failure, or installment paymentEscrow or exchange number California countyParcel number

Property address

Daytime telephone number

California corporation numberFederal employer identification numberSocial security number or individual taxpayer identification number

City, state, zip codeAddress

Part I Withholding AgentName

Enter amount of withholding used as payment on Screen PPmt or Screen LPmt.All fields are used for electronic filing purposes ONLY. Enter amount of withholding passed through to partners or members on Screen K‐3.

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30

CA593 CA46A



439

Form [CA46A] - California Real Estate Withholding Received

Overview

Use this form to complete electronic filing information for Forms 565 and 568 when the entity has received Form 593.

593 Facsimile

Use this section to enter information about the withholding agent. Enter information exactly as it appears on Form 593.


Use this section to enter information about the escrow or exchange. Enter information exactly as it appears on Form 593. Amounts entered in this section are not included in the calculation of the tax return and are used for electronic filing purposes only.


Use this section to enter information about the preparer. Enter information exactly as it appears on Form 593.


440

California Withholding Tax StatementCA592B (2016)

592-B Facsimile

592-B Type of Income

592-B Tax Withheld

592-B Facsimile


592-B Tax Withheld

All fields are used for electronic filing purposes ONLY. Enter amount of withholding passed through to partners or members on Screen K‐3.Enter amount of withholding used as payment on Screen PPmt or Screen LPmt.

NamePart I Withholding Agent

AddressCity, state, zip code

Social security number or individual taxpayer identification numberFederal employer identification numberCalifornia corporation number

Daytime telephone number

Payments to independent contractorsElective withholding

Rents or royalties

Estate distributionsTrust distributions

Allocations to foreign (non‐US) nonres ptrs / mbrsDistributions to domestic (US) nonres ptrs / mbrsOther (describe)

Total income subject to withholdingTotal California tax withheld Total backup withheld

Amounts entered here are NOT included in the calculation of the return


Elective withholding/Indian tribe

Secretary of State file number

Amended

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CA592B CA46B



441

Form [CA46B] - California Withholding Tax Statement

Overview

Use this form to complete electronic filing information for Forms 565 and 568 when the entity has received Form 592-B.

592-B Facsimile

Use this section to enter information about the withholding agent. Enter information exactly as it appears on Form 592-B.


Use this section to enter information about the income subject to withholding.

592-B Tax Withheld

Use this section to enter information about the tax withheld. Enter information exactly as it appears on Form 592-B. Amounts entered in this section are not included in the calculation of the tax return.


442

California Withholding ReturnCAWith (2016)

Withholding ReturnWithholding Return

Prior year distributionAmendedFederal ID number, SOS file number, or corporation number (1 = FEIN, 2 = SOS number, 3 = Corporation number(LLC only))

Prior payments not previously distributed

Agent's name (Defaults to TMP)

Agent's daytime phone number (Defaults to federal)Filing Form 592 electronically (Only prints payment voucher)

Number of payeesAmount due

General footnote

Withheld by another entity and being distributed (Force)

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CAWith CA46C



443

Form [CA46C] - California Withholding Return

Overview

Use this form to complete Forms 592 and Form 592-V.

Note: To access this input form, choose File > Client Properties > California tab and mark the 592 Withholding checkbox.

Withholding Return

Use this section to complete Forms 592 and 592-V. If this form is attached, Forms 592 and 592-V will calculate using amounts from Form 592-B calculated with Forms 565 or 568. To exclude a partner from withholding, enter X in the Exclude from nonresident withholding field in the California tab of View > Partner Information.


444

California IRS Rev Proc 2009-20CAPonzi (2016)




Initial investmentSubsequent investmentsIncome reported in prior yearsWithdrawals for all years

Actual recoveryPotential insurance or SIPC recovery

Does the taxpayer intend to pursue third‐party recovery? (1 = Yes, 2 = No)

Name of responsible individual or entity

AddressCity, state, zip code

Taxpayer identification number

Tax years and dates filed for returns that do not satisfy the conditions of Revenue Procedure 2009‐20


Description 1

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CAPonzi CA53



445

Form [CA53] - California IRS Rev Proc 2009-20

Overview

Use this form to complete the California version of federal Form 4684, Casualties and Thefts, Page 3. Amounts that appear in this form are automatically transferred from federal Form 4684.


446

California Schedule RCAR (2016)

Allocation of Income

Partner's Share of Distributive Items

Apportionment



Apportionment

Business inc subject to separate apportionment factor

Net income after adjustment (Force)


Rent expenseSalesPayrollEnding propertyBeginning property

California TotalTotal Within

Total Total WithinEverywhere California

Partnership's business income (Force)

CA source total gross income from other rentals (Force) (Schedule K‐1(565), Page 4)CA source total gross rents (Force) (Schedule K‐1(565), Page 4)CA source total deductions (Force) (Schedule K‐1(565), Page 4)CA source cost of good sold (Force) (Schedule K‐1(565), Page 4)

Enter apportionment information in View > Apportionment

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CAR CA56



447

Form [CA56] - California Schedule R

Overview

Use this form to complete Schedules R and K-1. Enter amounts for apportionment by choosing View > Apportionment Information.


Use this section to complete Schedule R. Enter amounts for apportionment by choosing View > Apportionment.

Net income after adjustment (Force)

ExacTax automatically calculates this amount and enters it on Schedule R, Page 1, line 1a. Enter an amount in this field to display a different amount than what was calculated.


Use this section to complete Schedule K-1.

Partnership’s business income (Force)

Enter the amount of the partnership’s business income, if other than the calculated amount, to display on Schedule K-1(565/568), Page 4, Table 2A, for unitary partners/members only.

Apportionment

ExacTax uses information in this section to complete Schedule K-1, Page 3. Click the Ptr Alloc button to specially allocate the amounts being transferred from Schedule R.


448

California Quarterly WithholdingCAWEst (2016)

Withholding PaymentsWithholding Payments


9 = Use income amounts entered below

1st payment

Amount to round up each quarter

B = Second vouchers

3 = Last 3 vouchers

2nd payment3rd payment

A = First vouchers

4 = 4 vouchers

Amts for Code 9 (Income)

2 = Last 2 vouchers

Form 592 ‐ declaration for next year

Amount for code #2

Number of vouchers desired next year

Withholdings Paid (Tax)

1 = Use current year income subject to tax

2 = Use current year income adjusted by amount below

4th payment

C = Third vouchers

1 = Last vouchers

1

2 3

4 5 6 7

8 9 10 11

12 13 14 15

16 17 18 19

20

21

CAWEst CA57A



449

Form [CA57A] - California Withholding Estimates

Overview

Use this form to complete Form 592, Resident and Nonresident Withholding Statement, and Form 592-V, Payment Voucher for Resident and Nonresident Withholding for next year.

Withholding Payments

Use this section to calculate the quarterly tax payments for next year. ExacTax uses this information to complete Form 592 for the next year.

Form 592- declaration for next year

Codes 1, 2, and 9 indicate which method you want to use to determine the amount of next-year quarterly withholding tax. If you leave this field blank, ExacTax does not generate estimate vouchers or quarterly withholding filing instructions.

Code Result

1 Use the current-year income subject to tax.

2 Use the current year income plus the adjustment in the Amount for code #2 field. If you select this option, also enter an adjustment to the current year income in the Amount for code #2 field. If the adjustment represents a decrease, enter a negative amount.

9 Use income amounts entered below in the Amts for Code 9 (Income) fields.

Amts for Code 9 (Income)

Use these fields to specify the quarterly income amounts for each quarter.

If code 9 is selected in the Form 592 - declaration for next year field, enter the desired quarterly income in these fields. ExacTax calculates the tax for each partner and prints these income amounts and the calculated tax on the quarterly return.

Withholdings Paid (Tax)

Use these fields to specify the tax amounts already paid for each quarter. These amounts are subtracted from the calculated gross quarterly withholding tax liability to determine the net tax voucher amounts.

Number of vouchers desired next year

The number of quarterly payments defaults to 4. Enter a code to specify less than four quarterly withholding payments.

The options for the number of estimates are listed in the fieldview and in the following table.

Code Result

4 Four vouchers are generated. This is the default option.

3 Three vouchers are generated. Any unpaid balance from the first and second quarter are included in the third voucher.

2 Two vouchers are generated. Any unpaid balance from the first, second and third quarter are included in the fourth voucher.

1 The last estimate is generated. 100 percent of the gross estimated tax liability is allocated to the fourth voucher.


450

Code Result

A First estimate. 100 percent of the gross estimated tax liability is allocated to the first estimate.

B Second estimate. 100 percent of the gross estimated tax liability is allocated to the second estimate.


451

California Separately Stated Income and ExpensesCASepK (2016)

Income (Loss)

Section 179

Deductions



Description Form

Unit

Net gain under section 1231 (Nonbusiness rental and farm rental for gain on tangible assets; other activities use total)

Section 179 expense ‐ personal property (Force)

Reforestation expense deduction

Depreciation adjustment post 1986 (Excludes specially allocated amounts)


Guaranteed payments ‐ deductible (Other than health insurance, pensions, and IRAs)Guaranteed payments ‐ nondeductible


Pensions and IRAs considered guaranteed payments to partnersPreproductive period expenses (Force) (Farm and Farm Rental activities only)

Carryover from prior year ‐ personal property

Net loss under section 1231 (Enter as negative) (Nonbusiness rental and farm rental for loss on tangible; other activities use total)

Depletion (other than oil and gas) (Other than from passthrough K‐1's)

Deductions ‐ royalty income (Rental activities marked as Royalty only)

D‐1 gain ordinary incomeD‐1 loss ordinary income

Gross income from oil, gas, and geothermal propertiesDeductions allocable to oil, gas, and geothermal properties

Net gain (loss) under section 1231 for intangible assets (Nonbusiness rental and farm rental activities only)

1

23

4

5

6

7 8

9 10

11 12

13 14

15

16

17

18 19

20

21

22 23

24 25

26 27

28 29

30 31

35

36

37

38 39

CASepK CA58



452

Form [CA58] - California Separately Stated Income and Expenses

Overview

Use this form to enter Schedule K items that should be separately stated by partner by activity, in order for the partner to complete their individual tax return. The total of amounts entered on this form will be used to complete Schedules K and K-1. The specific amounts entered on this form for each activity will be separately reported on the California Partner’s Schedule K-1 Activity Worksheet.

Income (Loss)

Use this section to enter Schedule K income (loss) items for each activity. Use Form CAK to enter income (loss) items that do not need to be separately stated by partner by activity.

Guaranteed payments - deductible

Use Forms CAFR2, CAF2, CAInc, CAK-2, and CARent to enter the deductible guaranteed payments for each activity. ExacTax allocates the guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate deductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.

Health insurance and pensions and IRAs considered guaranteed payments to partners are not included in this partner allocation. To allocate these payments using ratios other than the profit-sharing percentage, use the respective Ptr Alloc buttons below.

ExacTax combines the guaranteed payments, including guaranteed payments for health insurance and pensions and IRAs, entered in Forms CAFR2, CAF2, CAInc, CAK-2, and CARent; and the nondeductible guaranteed payments you enter in this form to calculate the total guaranteed payments for Schedule K, Guaranteed payments.

Guaranteed payments - nondeductible

Enter the nondeductible portion of guaranteed payments for each activity. ExacTax allocates the amount to the partners based on the profit-sharing percentage. Click the Ptr Alloc button to allocate nondeductible guaranteed payments to the partners using ratios other than the profit-sharing percentage.


Section 1231 gain (loss)

ExacTax automatically calculates the section 1231 gain (loss) from the sale of business property for each activity. Click the Ptr Alloc button for each activity to allocate section 1231 gain (loss) to the partners using ratios other than the profit-sharing percentage.

Section 179

Use this section to allocate section 179 expense and enter the carryover 179 for each activity.

Section 179 expense - personal property (Force)


453

ExacTax automatically calculates the section 179 expense for personal for each activity based on data entry in the asset module or in Form CADepr. To force ExacTax to use a specific section 179 expense amount, enter the desired amount, including 0 (zero), in these fields. If an amount is entered for any activity, then all activities must be forced.

Note: Use Form CAOthAst in the General folder to use an amount different than the amount ExacTax calculates for the total cost of section 179 property placed in service this year, the maximum dollar limit, and the business income limitation.

Deductions

Use this section to enter deduction items other than the section 179 expense deduction for each activity. Use Form CAK-2 to enter deductions that do not need to be separately stated by partner by activity.


Use Forms CAFR2, CAF2, CAInc, CAK-2, and CARent to enter health insurance considered guaranteed payments to partners for each activity. ExacTax allocates the health insurance considered guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate health insurance considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.



Use Forms CAFR2, CAF2, CAInc, CAK-2, and CARent to enter pensions and IRAs considered guaranteed payments to partners for each activity. ExacTax allocates the pension and IRAs considered guaranteed payments to the partners based on the profit-sharing percentage. Click the Ptr Alloc button for each activity to allocate pensions and IRAs considered guaranteed payments to the partners using ratios other than the profit-sharing percentage.



Use this section to enter adjustments and tax preferences for each activity. Use Form CAK-4 to enter adjustment and tax preferences that do not need to be separately stated by partner by activity.

Depreciation adjustment post 1986

ExacTax automatically transfers the depreciation adjustment on MACRS property placed in service after 1986 for this activity from the Form 51, excluding specially allocated amounts. If you did not enter assets in the asset module, enter the amount in this field.

Note: ExacTax transfers only the depreciation adjustment for assets that have a MACRS method selected in the Method field (Tax column) in the asset module.


ExacTax automatically transfers the adjusted gain or loss for this activity from the Form 51. ExacTax calculates the adjusted gain or loss as the gain (loss) for the AMT treatment less the gain (loss) for the Tax treatment. If you did not enter assets in the asset module, enter the amount in this field.


454

Note: ExacTax transfers only the adjusted gain or loss for assets that have a MACRS method selected in the Method field (Tax column) in the asset module.

Appendix A - Cross Reference

Federal - Sort by form number 2016

Form # 1065 FORM DESCRIPTION 1 Partnership Information and Book 2 Client Contact Information , Filing Instructions and Elections

3A Schedule B - Other Information 3B Partner Basis 4 Electronic Filing and Bank Information 8 1065 Financial Statements 9 1065 Client Contact Information, Filing Instructions and Elections

10A Partner Information 10B Nonresident Partners State Information 11 Special Allocations 12 Schedule K and K-1 Supplemental Items Section A 13 Transfer of partner interest 14 Special Allocated Depreciation

20A Income and Deductions 20B Cost of Goods Sold 21A Schedule K - Income 21B Schedule K - Deductions Page 2 21C Schedule K - Domestic Production Activities Deduction Page 3 21D Schedule K - Adjustments and Tax Preferences Page 4 21E Schedule K - Self Employment Income Page 5 22 Deferral of Cancellation of Debt income 25 Apportionment Information 27 Schedule K-1 Item M and Partner's Share of Liabilities 30 Schedule D 31 Rent and Royalty Property - General Questions

32A Forms 1065/1041 Schedule K-1 - General Information and Income 32B Forms 1065/1041 Schedule K-1 - Deduction, Page 2 32C Forms 1065/1041 Schedule K-1, Deduction, Self-employed and Credit, Pages 3 32D Forms 1065/1041 Schedule K-1 AMT and Page 5 32E Forms 1065/1041 Schedule K-1 M-3 AND 179 Carryover 32F Forms 1065/1041 Schedule K-1 Foreign 32G Schedule K-1 - Cancellation of Debt income 32H Forms 1065/1041 Schedule K-1 Credit 36 Schedule F - General Information 38 Form 4835 - General Questions 39 Form 6781 - General Information

43A Forms 4797 and 6252 - Manual Sales 43B Form 8824 - Like-Kind Exchanges - General Information 43D Form 6252 - Prior Year Installment Sale General Information 43E Form 4684 - Casualty and Theft - Business or Income Producing Properties 43G Forms 4797 and 6252 - Manual Sales 43H Pass-through Sales 43I Form 4684 - Casualty and Theft - Business or Income Producing Properties 43J Like-Kind Exchanges of Section 179 Property 43K Rev Proc 2009-20 Ponzi 50 General Depreciation 51 Listed Property and Other Property with Business Use Percentage 53 Other Depreciation Information 54 Bonus Depreciation Options

55A Disposal (Current Year Dispositions)


455

2016 Form # 1065 FORM DESCRIPTION

55B Disposal (Like-Kind Exchange) 55C Disposal (Casualty and Theft Loss) 59 Form 4797 - Other Information

60A Schedule L - Assets 60B Schedule L - Liabilities 61 Schedule M-1 and M2

62A Schedule M-3 62B Schedule M-3, Page 2 63C Schedule M-3, Page 3 63 Schedule M-3 Cost of Goods Sold 64 Additional information for Schedule M-3 65 Separately Stated Income and Expenses

73A Noncash Contribution < $5000 73B Noncash Contribution > $5000 73C Noncash Contribution > Auto 80A Credits - Forms 5884, 5884-B, and 6478 80B Credits - Forms 6765, 8820 and 8826 80C Credits - Forms 8835 and 8844 80D Credits - Forms 8845, 8846, 8847, 8864 and 8874 80E Credits - Forms 8881, 8882, 8932 and 8941 80F ITC Credit 80H Low Income Housing Page 1 80I Form 4255 - Investment Credit Recapture 81A Form 4136 Page 1 81B Form 4136, Page 2 81C Form 4136, Page 3 82 General Information - Form 3468, 6478, 6765, 8835 and 8941 83 Credit from Cooperatives 90 Universal Explanation

90A Form 8822 - Change of Address 90B Form 8886 - Reportable Transaction - Entities Involved in Transaction 90C Form 8886 - Reportable Transaction - Entities Involved in Transaction, Page 2 90D Form 8594 - Asset Acquisition Statement 90E Form 8716 Election to have a tax year other than a required Year 90F Form 8752 Required Payment of Refund 90G Application to Use LIFO Method 90H Application to Use LIFO Method Page 2 90I Consent Forms 91A Power of Attorney 91B Power of Attorney, Page 2 95A Form 1065X - Amended Return 95B Form 1065X - Amended Return, Page 2 95C Form 1065X - Amended Return, Page 3 95R Form 114 FBAR - Report of Foreign Bank and Financial Accounts 95S Report of Foreign Bank and Financial Accounts 95T Statement of Foreign Assets 95U Statement of Foreign Assets, Page 2

California - Sort by form number 2016

Form # 1065 FORM DESCRIPTION CA1A CA General Information for LLC, Depreciation and Voucher CA1B CA Other Information - LLC CA2 CA General Information for Partnership, Disregard, Schedule B Depreciation and Schedule O

CA3A CA Form 565 - Payment , Ext, Use Tax, Penalty and Interest


456

2016 Form # 1065 FORM DESCRIPTION CA3B CA Form 568 - Payment, Ext, Use Tax, Penalty and Interest CA4 CA LLC Income Worksheet CA5 CA Schedule M-1and Schedule M-2 CA6 CA Ordinary Income, Allocation and Nonbusiness Prop CA7 CA Schedule D - Capital Gains and Losses CA8 CA Schedule K - Income , Page 1 CA9 CA Schedule K - Deductions and Credits

CA10 CA Schedule K - Adjustments and Tax Preferences Page 3 CA11 CA Forms 565/568/541 Schedule K-1 - General Information CA12 CA Forms 565/568/541 Schedule K-1 - General Information CA13 CA Forms 565/568/541 Schedule K-1 - General Information CA14 CA Forms 565/568/541 Schedule K-1 - General Information

CA15A CA Farm Income CA15B CA Farm Expenses CA16A CA Farm Rent Income CA16B CA Farm Rent Expenses CA17 CA Other CA18 CA Miscellaneous CA19 CA Sales - Manual

CA20A CA Tax Free Exchange CA20B CA Out of State Tax Free Exchange CA21 CA Installment Sales CA22 CA Casually and Theft CA23 CA K-1 Sales CA24 CA Pass-thought Sales CA25 CA Deprecation Adjustment CA26 CA Power of Attorney CA27 CA Schedule K Supplemental CA28 CA Allocated CA29 CA Rent CA30 CA Pass-Thru Tax Free Exchange CA31 CA Electronic Filing CA40 CA Casualty and Theft Loss CA45 CA Bank Information

CA46A CA Real Estate Withholding Tax CA46B CA NR Withholding Tax CA46C CA Withholding Tax CA53 CA Rev Proc 2009-20 Ponzi CA56 CA Schedule R

CA57A CA Withholding Estimate CA58 CA Separately Stated Income and Expenses

Federal - Sort by form description 2016

Form # 1065 FORM DESCRIPTION 9 1065 Client Contact Information, Filing Instructions and Elections 8 1065 Financial Statements

64 Additional information for Schedule M-3 90G Application to Use LIFO Method 90H Application to Use LIFO Method Page 2 25 Apportionment Information 54 Bonus Depreciation Options 2 Client Contact Information , Filing Instructions and Elections

90I Consent Forms 20B Cost of Goods Sold


457


83 Credit from Cooperatives 80A Credits - Forms 5884, 5884-B, and 6478 80B Credits - Forms 6765, 8820 and 8826 80C Credits - Forms 8835 and 8844 80D Credits - Forms 8845, 8846, 8847, 8864 and 8874 80E Credits - Forms 8881, 8882, 8932 and 8941 22 Deferral of Cancellation of Debt income

55C Disposal (Casualty and Theft Loss) 55A Disposal (Current Year Dispositions) 55B Disposal (Like-Kind Exchange)

4 Electronic Filing and Bank Information 95A Form 1065X - Amended Return 95B Form 1065X - Amended Return, Page 2 95C Form 1065X - Amended Return, Page 3 95R Form 114 FBAR - Report of Foreign Bank and Financial Accounts 81A Form 4136 Page 1 81B Form 4136, Page 2 81C Form 4136, Page 3 80I Form 4255 - Investment Credit Recapture 43E Form 4684 - Casualty and Theft - Business or Income Producing Properties 43I Form 4684 - Casualty and Theft - Business or Income Producing Properties 59 Form 4797 - Other Information 38 Form 4835 - General Questions

43D Form 6252 - Prior Year Installment Sale General Information 39 Form 6781 - General Information

90D Form 8594 - Asset Acquisition Statement 90E Form 8716 Election to have a tax year other than a required Year 90F Form 8752 Required Payment of Refund 90A Form 8822 - Change of Address 43B Form 8824 - Like-Kind Exchanges - General Information 90B Form 8886 - Reportable Transaction - Entities Involved in Transaction 90C Form 8886 - Reportable Transaction - Entities Involved in Transaction, Page 2 32B Forms 1065/1041 Schedule K-1 - Deduction, Page 2 32A Forms 1065/1041 Schedule K-1 - General Information and Income 32D Forms 1065/1041 Schedule K-1 AMT and Page 5 32H Forms 1065/1041 Schedule K-1 Credit 32F Forms 1065/1041 Schedule K-1 Foreign 32E Forms 1065/1041 Schedule K-1 M-3 AND 179 Carryover 32C Forms 1065/1041 Schedule K-1, Deduction, Self-employed and Credit, Pages 3 43A Forms 4797 and 6252 - Manual Sales 43G Forms 4797 and 6252 - Manual Sales 50 General Depreciation 82 General Information - Form 3468, 6478, 6765, 8835 and 8941

20A Income and Deductions 80F ITC Credit 43J Like-Kind Exchanges of Section 179 Property 51 Listed Property and Other Property with Business Use Percentage

80H Low Income Housing Page 1 73A Noncash Contribution < $5000 73B Noncash Contribution > $5000 73C Noncash Contribution > Auto 10B Nonresident Partners State Information 53 Other Depreciation Information 3B Partner Basis

10A Partner Information 1 Partnership Information and Book

43H Pass-through Sales


458


91A Power of Attorney 91B Power of Attorney, Page 2 31 Rent and Royalty Property - General Questions

95S Report of Foreign Bank and Financial Accounts 43K Rev Proc 2009-20 Ponzi 3A Schedule B - Other Information 30 Schedule D 36 Schedule F - General Information

21D Schedule K - Adjustments and Tax Preferences Page 4 21B Schedule K - Deductions Page 2 21C Schedule K - Domestic Production Activities Deduction Page 3 21A Schedule K - Income 21E Schedule K - Self Employment Income Page 5 12 Schedule K and K-1 Supplemental Items Section A

32G Schedule K-1 - Cancellation of Debt income 27 Schedule K-1 Item M and Partner's Share of Liabilities

60A Schedule L - Assets 60B Schedule L - Liabilities 61 Schedule M-1 and M2

62A Schedule M-3 63 Schedule M-3 Cost of Goods Sold

62B Schedule M-3, Page 2 63C Schedule M-3, Page 3 65 Separately Stated Income and Expenses 14 Special Allocated Depreciation 11 Special Allocations

95T Statement of Foreign Assets 95U Statement of Foreign Assets, Page 2 13 Transfer of partner interest 90 Universal Explanation

California - Sort by form description 2016

Form # 1065 FORM DESCRIPTION CA28 CA Allocated CA45 CA Bank Information CA22 CA Casually and Theft CA40 CA Casualty and Theft Loss CA25 CA Deprecation Adjustment CA31 CA Electronic Filing

CA15B CA Farm Expenses CA15A CA Farm Income CA16B CA Farm Rent Expenses CA16A CA Farm Rent Income CA3A CA Form 565 - Payment , Ext, Use Tax, Penalty and Interest CA3B CA Form 568 - Payment, Ext, Use Tax, Penalty and Interest CA11 CA Forms 565/568/541 Schedule K-1 - General Information CA12 CA Forms 565/568/541 Schedule K-1 - General Information CA13 CA Forms 565/568/541 Schedule K-1 - General Information CA14 CA Forms 565/568/541 Schedule K-1 - General Information CA1A CA General Information for LLC, Depreciation and Voucher CA2 CA General Information for Partnership, Disregard, Schedule B Depreciation and Schedule O

CA21 CA Installment Sales CA23 CA K-1 Sales CA4 CA LLC Income Worksheet


459

2016 Form # 1065 FORM DESCRIPTION CA18 CA Miscellaneous

CA46B CA NR Withholding Tax CA6 CA Ordinary Income, Allocation and Nonbusiness Prop

CA17 CA Other CA1B CA Other Information - LLC

CA20B CA Out of State Tax Free Exchange CA24 CA Pass-thought Sales CA30 CA Pass-Thru Tax Free Exchange CA26 CA Power of Attorney

CA46A CA Real Estate Withholding Tax CA29 CA Rent CA53 CA Rev Proc 2009-20 Ponzi CA19 CA Sales - Manual CA7 CA Schedule D - Capital Gains and Losses

CA10 CA Schedule K - Adjustments and Tax Preferences Page 3 CA9 CA Schedule K - Deductions and Credits CA8 CA Schedule K - Income , Page 1

CA27 CA Schedule K Supplemental CA5 CA Schedule M-1and Schedule M-2

CA56 CA Schedule R CA58 CA Separately Stated Income and Expenses

CA20A CA Tax Free Exchange CA57A CA Withholding Estimate CA46C CA Withholding Tax

Documents

2016-1065-MANUAL - ExacTax€¦ · 2016 Partnership Manual 4 New York – New York City ..... 108