How do I prepare Colorado DR 1705 SALT Parity Act Election Form and populate DR 0106, lines 17-20, with a 1065 return using CCH® ProSystem fx® Tax CCH and Axcess™ Tax?
- Article Type:
- How To
- Last Modified:
- 03/17/2023
Objectives
Calculate passthrough entity tax with Colorado form DR 0106.
Environment
- CCH® ProSystem fx® Tax
- CCH Axcess™ Tax
- Partnership - 1065
- Colorado - CO
Procedure
- Go to Colorado > SALT Parity worksheet.
- In Line 1 - Electing to be subject to tax under the SALT Parity Act (Form DR 0106), select the checkbox.
- Calculate the return.
- Go to Common State > State PTE Generation worksheet.
- In Line 6 - Colorado, select the checkbox in the first column.
- Calculate the return.
Prepayments of tax DR 0106, page 2, line 22
- Extension payment:
- Colorado >Payments / Penalties > Section 1 - Line 1 - Amount to be paid with Form DR -158-N.
- Amount paid with extension will not apply unless DR 158-N is prepared and unlocked.
- Per Diagnostic 30164, Form DR 0158-N has been prepared but is not available for electronic filing (tax year 2022).
- Prior year overpayment applied
- Federal > Payments/Penalties/Estimates > Payments worksheet > select or create the row with state code CO > select Detail > In Line 8 - Prior year overpayment applied, input applicable amount.
- Prepaid estimates
- Go to Colorado > Payments / Penalties worksheet > Section 1 - Tax Payments.
- Grid 1 - Estimated Tax Payments - For the Current Year, input applicable amounts.
- Or Line 2 - Total if four equal timely payments made - overrides detail above, input applicable amount.
SALT Parity Next Year Estimates
Per 2022 Instructions:
- "For tax year 2022, partnerships and S corporations making a SALT Parity Act election are not required to make estimated payments. In general, for tax years beginning on or after January 1, 2023, a partnership or S corporation that will make a SALT Parity Act election must remit quarterly estimated payments if its net Colorado tax liability for the year will exceed $5,000."
Force DR 106-EP with SALT Parity Election
- Go to Colorado > SALT Parity worksheet.
- In Line 4 - Estimates electing to be subject to tax under SALT Parity Act (Form DR 0106EP), select the checkbox.
- Go to Colorado > Payments / Penalties worksheet.
- Expand Section 3 - Estimated Tax Information.
- In Line 2 - Estimated Taxable Income - override, input an applicable amount.
- (Optional) In Line 3 - Net estimated tax - override, input an amount if desired.
- In Lines 5-6 - Application of Overpayment, input if applicable.
- (Optional) In Lines 7-8 - CO 106-EP Voucher Overrides, input desired amounts and dates if applicable.
Additional Information
Solution Id | 000258162/000258162 |
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