CCH Axcess Tax

Partner Percentages or Units - Profit

Enter the partner's beginning-of-the-year profit-sharing percentage or units here.

Note: If entering units, you must also select a units option on the "Units Option" field of the "Schedule K-1 calculation Options" section of the "General Options" worksheet under the "Partners" category.

If you are entering percentages, enter the percentages as decimal amounts. For example, enter 50% as ".5," not as "50." Also, minimize rounding adjustments by entering as many significant digits as possible up to a maximum of eight digits.

The total of the percentage entries here for all partners should equal 100 percent. A diagnostic message is issued if the total does not equal 100%.

Note: When the total does not equal 100%, you can choose to have the variance corrected by specifying the partner to receive the variance on the Schedule K-1 Calculation Options section.

If entering units, entries in the "Profit" boxes for all partners are totaled and items are distributed to partners using a ratio of each partner's profit units divided by the total profit units.

The partner's profit-sharing percentage is used to allocate items to the partner when the total of Schedule M-1, line 9 less guaranteed payments is greater than zero unless either of the following apply:

1. You enter special allocations in the Special Allocations section

2. You enter detail in the Transfer of Partner Interest section for effective ratios.

If you leave the profit-sharing field blank but make an entry in the loss-sharing field, the loss-sharing field is used to allocate the items.

For new partners during the tax year, do not enter partner percentages or units here. For these new partners, enter only a partner number and other identifying information (name, address, identifying number, etc.). Then use the Transfer of Partner Interest section for an effective ratio computation or time segmented allocation. Also use the Transfer of Partner Capital section for partner transfer-of-interest transactions.