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CCH Axcess Tax

Introduction to the Utah Partnership Return

The Utah partnership return will be prepared for calendar, fiscal and short year partnerships. Using your entries from the federal return, Utah worksheets and, if needed, the federal worksheet under the Common State category. The following forms and schedules are prepared for the Utah return:

Federal Worksheets and Automatic Features

Depreciation

Utah allows federal depreciation. State depreciation is computed from your depreciation entries on the federal depreciation forms.

Utah conforms to the federal bonus depreciation. No adjustments are made for depreciation differences due to bonus depreciation.

FS Codes

Utah income is computed using federal ordinary income and Schedule K income and deductions. You are not required to use FS codes to prepare a Utah partnership return. All income and expenses included on the federal worksheets carry to the Utah return.

Automatic Features

Generally, adjustments to federal ordinary income are handled through entries on Utah forms. The following items from the federal return do not require additional entries on the state forms:

• Interest from U.S. obligations
• Basic partner information

U.S. Obligations

Interest on obligations of the United States entered on the federal Income/Deductions category, Interest and Dividends Worksheets carries to the Utah Schedule K-1 as an adjustment from federal ordinary income.

Municipal Bond Interest

Utah does not include municipal bond interest in the computation of Utah income.

If this is a multistate return and the partnership has municipal bond interest from different states, be sure to indicate the source of municipal bond interest. The assumption is made that interest originates in the state entered in the state code field on the General category, Basic Data Worksheet, General sectionif :

You do not identify the municipal bond interest source on the federal forms, the income on the other state return(s) may be incorrect.

Utah General Partners' Information

The Utah Schedule K-1 provides information for general partners or managing members and limited partners or non-managing members. To identify a partner regardless of the entity or partner type check the field "State use - checkbox 1" on the Common State category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section.

Enter the telephone number for each of the general partners on federal Common State, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section, State use field. The date each of the general partners became affiliated with the partnership should be entered on the federal Common State, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section, "State use - date 1" field .

When 100% of partnership interest is transferred by a general partner and a code "T" is entered in the corresponding "TR" field on federal Partners category, Transfer of Partner Interest and Capital Worksheet, Transfer of Interest section, the Utah Schedule K-1 uses the date entered in the corresponding "Date of Transfer" field as the general partner's date withdrawn from the partnership. You may override this entry on Common State category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section, "State use - date 2" field.

Nonresident Information - Schedule K Amounts

When Schedule K amounts are from sources both within Utah and outside of the state, or if the partners include both residents and nonresidents of Utah, use Utah Income / Deductions, Income Worksheet to enter detail amounts and you can specially allocate these amounts.

K-1 Suppression

Use federal Partners category, General Options Worksheet, Schedule K-1 Print Options section to suppress all state and city Schedule K-1s. See the instructions on Interview Form 5 under "Suppress Schedules K-1 Print Code". To override this option use Utah General, Options, Suppress Schedules K-1 - override field.

Type of Partnership

The return type indicated on the Utah return is determined by federal Form 1065, Schedule B, question 1. If the federal return is a Limited Liability Company or Limited Liability Investment Company, then the Utah return is designated as a Limited Liability Company return. If the federal return is a Limited Liability Partnership, then the Utah return is designated as a Limited Liability Partnership.

Entries in the Common States category, Generic State Schedule K-1 Information Worksheet, State / City Information section, Type of entity filing this return field, overrides the default to the federal return type when the the Common States category, Generic State Schedule K-1 Information Worksheet, State / City Information section, "State Code" field is "UT" or blank.. You can also override this entry on Utah, General, Entity type - override field.

Final and Amended K-1s

The Utah Schedule K-1 is designated as final or amended if the same partner's federal K-1 is final or amended. In addition, if the Utah return is final or amended, all Schedules K-1 are designated as final or amended. You can use the federal Common States category, Generic State Schedule K-1 Information, Generic Partner Input section to override these defaults or to designate a Schedule K-1 separately.

Utah Partner's Printing Percentage Override

Use the federal Common States category, Generic State Schedule K-1 Information section to override the printing percentage on the Utah Schedule K-1. Enter "UT" in the "State Code" field on the federal Common States category, Generic State Schedule K-1 Information Worksheet, State / City Information section. If this field is blank, the override percentages apply to all states in the return. Multiple Generic State Schedule K-1 Information Worksheets may be used with different state codes if unique printing percentage overrides are required.

Utah Partner's Printing Percentage for Ratio Reference

You may override the Utah Schedule K-1 percentage field for printing purposes only by referencing a ratio identification number on the federal Common States category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section, profit and loss fields. Specify the partners and percentages to use on the Partners category, Special Allocations Worksheet, Ratio Allocations section. These two fields on the Common States category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section correspond to the printing percentage on Utah Schedule K-1: profit and loss at end of year. Each of the two printing percentages function independently of the other. Allocations are not affected by print-only ratios.

Optional Text for All Partners

In addition to ratio references, an option is provided to print text entries in place of percentages. See the federal instruction guide for use of the optional text entries or preparer specified text entries for all partners. Utah uses entries in the ending profit and loss columns.

Utah Partner's Printing Percentage by Direct Input

To relate specific printing percentage input to a particular partner, the partner number entered on the Common State category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input sectionmust match that partner's number entered on the Partners category, Partner Information Worksheet.

You may override the two percentage fields (profit and loss at the end of the year) by entering text on the Common State category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input section, Description field for a specific partner. This is a print-only option and has no effect on allocations. Up to 11 characters may be entered.

Partners' printing percentages by direct input text overrides any corresponding entries in the ratio reference boxes for that partner.