How do I move non-deductible expenses from Current Year Income to Other Increase (Decrease) in a 1065 return using interview forms?
- Article Type:
- How To
- Last Modified:
- 11/05/2022
Objectives
To move the non-deductible expenses from the Current Year Income to the Other Increase (Decrease) in a 1065 return using interview forms?
Schedule K-1 Other Increase (Decrease) - Non-deductible expenses
Schedule K-1 Other Increase (Decrease) - Non-deductible expenses
Environment
- CCH Axcess Tax
- CCH ProSystem fx Tax
- 1065
- Schedule K-1
- Interview
Procedure
On Schedule K-1, Item L, Analysis of partner's capital accounts, taxable/deductible items are included with current year net income and non-taxable/non-deductible items included with other increases and decreases. An option to include the non-taxable/non-deductible items with current year increases/decreases income has been discussed. The accounting theory is that the other increases and decreases would perfectly match the Schedule M-2 items.
To move the non-deductible expenses from Current Year Net income to Other Increase (Decrease), do the following:
To move the non-deductible expenses from Current Year Net income to Other Increase (Decrease), do the following:
- Go to Federal Interview Form K-3 - Other Schedule K Items and Schedules M-1 and M-2 Adjustments.
- Enter the Nondeductible Expenses:
- In Box 30 - Class Code, use the look up feature (double click or press F4) to select NDE - Nondeductible expenses.
- In Box 31 - Option, use the look up feature (double click or press F4) to select 2 - Return and not books (Schs. K/K-1/M-1).
- In Box 32 - Description, enter a description.
- In Box 33 - Amount, enter the amount.
- Enter the M-2 Adjustment:
- In Box 30 - Class Code, use the look up feature (double click or press F4) to select DCR - Other Decreases.
- In Box 32 - Description, enter a description.
- In Box 33 - Amount, enter the amount.
- Enter the Nondeductible Expenses:
- Calculate the return.
Additional Information
N/A
Solution Id | 000255705/How-do-I-move-non-deductible-expenses-from-Current-Year-Income-to-Other-Increase-Decrease-in-a-1065-return-using-interview-forms |
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