Changes in partners’ interest and transferring information input have been re-designed to effectively combine both aspects of the transaction. Separate input for transfer of capital on Interview Form K-7 is still provided but should generally not be needed. Interview Form K-6 can also be used for entering time segmented allocation ratios for partners whose interest in the partnership have changed during the year.
The System can accommodate as many as 100 separate transfer periods involving as many partners as may be changing their interest in the partnership at that date. No information needs to be entered for those partners who are not changing their percentage ownership in the partnership.
Generally all the information for both changes in interest and transfers of capital can be entered on Interview Form K-6. If amounts rather than percentages or units are being used to input the transactions, Interview Form K-7 should be used.
The System computes an effective ratio based on the number of days in the partnership year that the partner had for each specified resulting percentage /units. Including the beginning-of-year percentage /units entered on Interview Form K-1, the System can compute 100 different sharing percentages during the year for any partner.
If you enter a special allocation on Interview Form K-4, the effective ratio computed from Interview Form K-6 is only used to allocate any remainder left over from the Interview K-4 allocation for that item.
The System produces a schedule detailing the changes in partners’ interests per period. The transfers themselves are shown in both a summary statement and a detail report.
The System calculates using the resulting percentages / units entered for each respective period as the effective ratio resulting from changes in partnership interests for each of the partners entered on Interview Form K-6 as a transferring or receiving partner. The effective ratio is used as the partner’s default allocation percentage.
The option on Interview Form 5, Box 51, is available to print this effective ratio as the end-of-year profit and loss ratios on Schedule K-1. If this option is not used, the end-of-year profit and loss ratios will print as calculated from the last transfer of interest for the year.
The option on Interview Form 5, Box 50 (code 4) can be used to print the end-of-year profit / loss ratios as the end-of-year percentages on the Schedules K-1.
If units are being used on Interview Form K-1, and there is a code 1 or 2 entered on Interview Form 5, Box 53, enter units on this interview form as well. Otherwise enter percentages.
See Also
| Product Support - support.cch.com/axcess Customer Support Knowledge Base - support.cch.com/kb Customer Support Contacts - support.cch.com/contact |