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CCH Axcess Tax

Introduction to the Florida Partnership Return

The Florida Partnership Information Return (Form F-1065) is prepared for calendar, fiscal and short year partnerships using the entries on federal and Florida worksheets.

Federal Notes and Features

Depreciation

Florida has decoupled from the bonus depreciation provisions contained in Section 168(k) of the Internal Revenue Code for 2008 to 2020. Florida requires corporate taxpayers to add back bonus depreciation for assets placed in service during the 2008 through 2020 calendar years. However, starting in the year of the add back, it provides for a corresponding subtraction for seven tax years equal to one-seventh of the amount required to be added back. The federal bonus depreciation from the current year Form 4562 will automatically be included in other additions on Florida Form F-1065, Page 1, Part I, Line A3. The calculated amount may be overridden with an entry on Florida (F-1065) > Income/Deductions > Additions and Subtractions > Current year disallowed bonus depreciation - override. One-seventh of the amount included in other additions will be included in other subtractions on Florida Form F-1065, Page 1, Part I, Line B. Enter the amount(s) of disallowed bonus depreciation included in Page 1, Part I, Line A3 of the Florida Form F-1065 for prior years- on Florida (F-1065) > Income/Deductions > Additions and Subtractions > Disallowed bonus depreciation. One-seventh of these amounts will be included in other subtractions on Florida Form F-1065, Page 1, Part I, Line B.

FS Codes

Federal information is used to prepare the Florida tax returns. FS codes are not required to process the Florida tax returns. FS entries may be used to process footnotes for the Florida Partnership Return Form F-1065.

Municipal Bond Interest

Florida includes all municipal bond interest in the computation of Adjusted Florida Partnership Income on Form F-1065.

If this is a multi-state return and the partnership has municipal bond interest from different states, be sure to indicate the source of municipal bond interest on the federal Income/Deductions > Interest. Enter the source of interest in the "State" field on the Interest worksheet. Interest is considered to originate in the state entered on federal General > Basic Data > General for the home state of the return if the "State" field is blank.

If the municipal bond interest source is not identified on the Interest worksheet, the income on the state return(s) other than Florida may be incorrect.

Florida Form F-1065 Special Allocations

Florida uses federal Special Allocations > Special Allocations to specially allocate Florida distributive share items. Use federal Special Allocations > Special Allocations > Special Allocation Detail for the following Florida special allocation codes:

For additional information concerning special allocations and the various special allocation methods, refer to the instructions for federal Special Allocations > Special Allocations.

Final and Amended K-1s

The Form F-1065 Schedules K-1 Equivalent are designated as final or amended if the same partner's federal Schedule K-1 is final or amended. In addition, if the Florida return is final or amended, all Schedules K-1 Equivalent are designated as final or amended. You can use federal Common State/City > Generic State Schedule K-1 Information to override these defaults or to designate the status of a particular Schedule K-1 Equivalent separately.

Application for Extension

Form F-7004, Extension of Time to File the Florida Tax Return, is processed when the partnership returns will be filed after their original due date. The form can be requested in any of the following ways:

1. Check the "Produce all state first extensions" field on federal Extensions > Extensions > State Extension Information. Florida must be the home state code on federal General > Basic Data > General, or Florida must be selected on federal Common State/City > State/City Generation, or there must be some input on the Florida worksheets.
2. Enter "FL" in the "State code" field on federal Extensions > Extensions > State Extension Information. Again, Florida must be the home state code on federal General > Basic Data > General, or Florida must be selected on federal Common State/City > State/City Generation, or there must be some input on the Florida worksheets.
3. Use federal Extensions > Extensions > Florida Extension to enter Florida unique extension information.
4. Use government view to key in data directly on Florida Form F-7004.

Note: When using methods 1 or 2, any Florida unique information must be input on federal Extensions > Extensions > Florida Extension.

General Questions

Q. Florida is the home state on federal General > Basic Data > General. No Form F-1065, Florida Partnership Information Return, has been processed. Is this correct?

A. We process Form F-1065 when Florida is the home state and there is at least one partnership or corporation partner. We process a Florida Schedule K-1 Equivalent for partnership and corporation partners. Your entries in the Florida (F-1065) > General > Basic Data override these assumptions.

Q. Where do I make the depreciation adjustments related to the federal bonus depreciation?

A. Florida decoupled from the bonus depreciation provisions contained in Section 168(k) of the Internal Revenue code for 2008 to 2020. Florida requires an add back of bonus depreciation for assets placed in service during the 2008 through 2020 calendar years, but also provides for a corresponding subtraction for seven tax years equal to one-seventh of the amount required to be added back. The federal bonus depreciation from the current year Form 4562 will automatically be added back on Form F-1065. The calculated amount may be overridden on Florida (F-1065) > Income/Deductions > Additions and Subtractions > Current year disallowed bonus depreciation - override. Enter the amount(s) of bonus depreciation added back on Form F-1065 in prior years on Florida (F-1065) > Income/Deductions > Additions and Subtractions > Disallowed bonus depreciation to calculate the subtraction for the current year.

Q. Does Florida use federal Common State/City > Generic State Schedule K-1 Information or Nonresident Schedule K-1 Equivalent?

A. Entries on federal Common State/City > Generic State Schedule K-1 Information are used to indicate final and amended Florida Schedules K-1 Equivalent (Form F-1065). An entry in the “Checkbox 1” field may be used to selectively print Florida Form F-1065 Schedules K-1 Equivalent.

The Florida partnership program does not use federal Common State/City > Nonresident Schedule K-1 Equivalent.