2016-1041-FORM-MANUAL€¦ · 2016 Fiduciary Manual 4 Form arrangement ..... 139

2016

FIDUCIARY

1041

INSTRUCTION MANUAL

2016 Fiduciary Manual

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Contents

GENERAL PROCEDURES .............................................................................................................................. 14 Overview ................................................................................................................................................ 14 Entering Return Information .................................................................................................................. 14 Input Form Assembly ............................................................................................................................ 15 Correcting a return ................................................................................................................................. 16

Changing a Return in Process ..................................................................................................................... 18 Procedure Charges ................................................................................................................................. 18 Proforma ................................................................................................................................................ 18 Customer and Technical Support ........................................................................................................... 18 Billing Queries and Reminders .............................................................................................................. 19

Remittance Envelopes ................................................................................................................................. 19

INPUT FORM PI - PROCESSING INFORMATION .................................................................................... 21 Shipping Options and Rates* ................................................................................................................. 21 Undeliverable Packages ......................................................................................................................... 21 Hold for Pick-Up ................................................................................................................................... 21

Expedite Requirements ............................................................................................................................... 22

FORM [1] - FIDUCIARY, ESTATE, TRUST, GENERAL, YEAR END ..................................................... 25 Overview ................................................................................................................................................ 25 Identification Information ...................................................................................................................... 25 Estate / Trust Information ...................................................................................................................... 26 General Information ............................................................................................................................... 29

FORM [2] - CONTACT INFORMATION ...................................................................................................... 32 Overview ................................................................................................................................................ 32 Invoices .................................................................................................................................................. 32 Miscellaneous Variables and Mailing Slipsheet .................................................................................... 33 Election Statements ............................................................................................................................... 34

FORM [3] - ALLOCATION OPTIONS ........................................................................................................... 37 Overview ................................................................................................................................................ 37 Allocation Options ................................................................................................................................. 37 Allocation of Indirect Expenses ............................................................................................................. 40 Exclude Indirect Expense ...................................................................................................................... 40 Net Income by Type .............................................................................................................................. 40

FORM [4] - ELECTRONIC FILING ............................................................................................................... 42 Overview ................................................................................................................................................ 42 General Information ............................................................................................................................... 42 Personal Identification Number (PIN) ................................................................................................... 44 Form 8948 - Paper Filing Exceptions .................................................................................................... 45

FORM [5] - PENALTIES ................................................................................................................................... 48 Overview ................................................................................................................................................ 48 Penalties, Exceptions, and Interest ........................................................................................................ 48 Schedule AI - Annualized Income Installment Method ........................................................................ 49

FORM [6] - FIDUCIARY RELATIONSHIP ................................................................................................... 52 Overview ................................................................................................................................................ 52


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General Information ............................................................................................................................... 52 Nature of Liabilities and Tax Notices .................................................................................................... 52 Court and Administrative Proceedings .................................................................................................. 52

FORM [7A] - ESTIMATES ............................................................................................................................... 54 Overview ................................................................................................................................................ 54 Overpayment .......................................................................................................................................... 54 Estimate Payment Voucher .................................................................................................................... 54

FORM [7B] - PAYMENTS AND EXTENSIONS ............................................................................................ 58 Overview ................................................................................................................................................ 58 Payments ................................................................................................................................................ 58 General Extension Information .............................................................................................................. 59 Extension for Forms 1041, 1041-QFT, 1040NR, or 3520-A ................................................................. 60 Extension for Forms 1041-A or 5227 .................................................................................................... 60

FORM [8] - STATE PAYMENTS ..................................................................................................................... 62 Overview ................................................................................................................................................ 62 Section 1 ................................................................................................................................................ 62

FORM [9] - BANK INFORMATION ............................................................................................................... 66 Overview ................................................................................................................................................ 66 Account Information .............................................................................................................................. 66

FORM [10A] - BENEFICIARY INFORMATION .......................................................................................... 68

Form 1128 box ............................................................................................................................................ 68 Other Information group box ...................................................................................................................... 68 Transmittal Letter group box ....................................................................................................................... 69

FORM [10B] - BENEFICIARY INFORMATION FOR PARTIAL GRANTOR ........................................ 72

FORM [20] - WAGES ........................................................................................................................................ 74 Overview ................................................................................................................................................ 74 General Information ............................................................................................................................... 74 W2 Facsimile ......................................................................................................................................... 74 State and City Information ..................................................................................................................... 74

FORM [21] - GAMBLING WINNINGS ........................................................................................................... 76 Overview ................................................................................................................................................ 76 General Information ............................................................................................................................... 76 W-2G Facsimile ..................................................................................................................................... 76

FORM [23] - DISTRIBUTIONS........................................................................................................................ 78 Overview ................................................................................................................................................ 78 Form 1099-R Facsimile ......................................................................................................................... 78 Form 4972 - Lump-Sum Distributions Tax ........................................................................................... 79

FORM [25] - MISCELLANEOUS INCOME .................................................................................................. 82 Overview ................................................................................................................................................ 82

General Information .................................................................................................................................... 82 1099-MISC Facsimile ................................................................................................................................. 82

FORM [26A] - INCOME AND CAPITAL ASSET SALES ........................................................................... 86 Overview ................................................................................................................................................ 86 Income ................................................................................................................................................... 86


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FORM [26B] - INCOME .................................................................................................................................... 91 Overview ................................................................................................................................................ 91

FORM [27A] - CAPITAL ASSET SALES ....................................................................................................... 97 Overview ................................................................................................................................................ 97 Schedule D / Form 8949 - Capital Gain / Loss Information .................................................................. 97

FORM [27B] - CAPITAL ASSET SALES ..................................................................................................... 101 Overview .............................................................................................................................................. 101 Schedule D / Form 8949 - Capital Gain / Loss Information ................................................................ 101

FORM [27C] - SHAREHOLDER UNDISTRIBUTED LONG-TERM CAPITAL GAINS ...................... 105 Overview .............................................................................................................................................. 105 Form 2439 Facsimile ........................................................................................................................... 105

FORM [28A] - BUSINESS PROFIT OR LOSS PAGE 1 .............................................................................. 107 Overview .............................................................................................................................................. 107 General Information ............................................................................................................................. 107 Income ................................................................................................................................................. 109 Expenses .............................................................................................................................................. 109

FORM [28B] - BUSINESS PROFIT OR LOSS PAGE 2 AND PASSIVES ................................................ 112 Overview .............................................................................................................................................. 112 Cost of Goods Sold .............................................................................................................................. 112 Auto Information ................................................................................................................................. 112 Other Information ................................................................................................................................ 113 Passive Activity Information ............................................................................................................... 114

FORM [31] - RENT AND ROYALTY PROPERTY .................................................................................... 116 Overview .............................................................................................................................................. 116 General Information ............................................................................................................................. 116 Income ................................................................................................................................................. 117 Expenses .............................................................................................................................................. 117

FORM [33A] - 1065 AND 1120S PASS-THROUGH GENERAL AND INCOME .................................... 120 Overview .............................................................................................................................................. 120

Form arrangement ..................................................................................................................................... 120 General Information ............................................................................................................................. 120 Income ................................................................................................................................................. 121

FORM [33B] - 1065 AND 1120S PASS-THROUGH DEDUCTIONS AND SELF-EMPLOYMENT ...... 129 Overview .............................................................................................................................................. 129

Form arrangement ..................................................................................................................................... 129 Deductions ........................................................................................................................................... 129

FORM [36A] - 1041 PASS-THROUGH GENERAL, INCOME, DEDUCTIONS, FINAL YEAR .......... 132 Overview .............................................................................................................................................. 132

Form arrangement ..................................................................................................................................... 132 General Information ............................................................................................................................. 132 Income and Deductions ....................................................................................................................... 133 Final Year Deductions ......................................................................................................................... 137

FORM [36B] - 1041 PASS-THROUGH AMT, CREDITS, OTHER, PASSIVES ...................................... 139 Overview .............................................................................................................................................. 139


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Form arrangement ..................................................................................................................................... 139 Alternative Minimum Tax Items ......................................................................................................... 139 Credits .................................................................................................................................................. 139 Other Information ................................................................................................................................ 140 Passive Activity Information ............................................................................................................... 141

FORM [37A] - FARM GENERAL AND INCOME ...................................................................................... 143 Overview .............................................................................................................................................. 143 General Information ............................................................................................................................. 143 Income ................................................................................................................................................. 144

FORM [37B] - FARM EXPENSES, OTHER, PASSIVES ........................................................................... 147 Overview .............................................................................................................................................. 147 Expenses .............................................................................................................................................. 147 Other Information ................................................................................................................................ 147 Passive Activity Information ............................................................................................................... 148

FORM [41A] - FORM 5227 AND 15 YEAR CARRYOVERS ..................................................................... 150 Overview .............................................................................................................................................. 150 Form 5227, Part II - Accumulation Schedule ...................................................................................... 150 Form 5227 Undistributed Schedule K-1 Amount ................................................................................ 150 15 Year NOL Carryover Items ............................................................................................................ 150

FORM [41B] - OTHER CARRYOVERS ....................................................................................................... 152 Overview .............................................................................................................................................. 152 Capital Losses ...................................................................................................................................... 152 Section 1231 Losses ............................................................................................................................ 153 Investment Interest ............................................................................................................................... 153 Form 8801 ............................................................................................................................................ 153

FORM [41C] - FOREIGN TAX CREDIT CARRYOVERS......................................................................... 156 Overview .............................................................................................................................................. 156

FORM [43A] - SALE OF BUSINESS PROPERTY ...................................................................................... 158 Overview .............................................................................................................................................. 158 General Information ............................................................................................................................. 158 Sale Information .................................................................................................................................. 159 Form 6252 - Installment Sales ............................................................................................................. 159 Form 6252 - Related Party Installment Sale Information .................................................................... 160

FORM [43B] - LIKE-KIND EXCHANGES................................................................................................... 162 Overview .............................................................................................................................................. 162 General Information ............................................................................................................................. 162 Part III - Computation of Gain and Basis ............................................................................................ 162 Related Party Exchanges ..................................................................................................................... 163

FORM [43D] - PRIOR YEAR INSTALLMENT SALE ............................................................................... 165 Overview .............................................................................................................................................. 165 General Information ............................................................................................................................. 165 Gross Profit and Contract Price ........................................................................................................... 166 Installment Sale Income....................................................................................................................... 166 Related Party Installment Sale Information ......................................................................................... 167

FORM [43E] - BUSINESS CASUALTY AND THEFT LOSS ..................................................................... 170 Overview .............................................................................................................................................. 170


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General Information ............................................................................................................................. 170 Business and Income Producing Properties ......................................................................................... 171 Replacement Information .................................................................................................................... 172

FORM [43F] - PRIOR YEAR BUSINESS CASUALTY AND THEFT LOSS ........................................... 174 Overview .............................................................................................................................................. 174 General Information ............................................................................................................................. 174 Business and Income Producing Properties ......................................................................................... 174 Replacement Information .................................................................................................................... 176

FORM [43G] - SECTION 179 PASS-THROUGH SALE ............................................................................. 178 Overview .............................................................................................................................................. 178 General Information ............................................................................................................................. 178 1065 / 1120S Section 179 Sale Information ........................................................................................ 178 Form 6252 - Installment Sales ............................................................................................................. 179 Form 6252 - Related Party Installment Sale Information .................................................................... 179

FORM [50] – GENERAL DEPRECIATION ................................................................................................. 181 Overview .............................................................................................................................................. 181

Protecting Americans from Tax Hikes Act of 2015 .................................................................................. 181 Depreciation ......................................................................................................................................... 181

General ...................................................................................................................................................... 181 Alternative Minimum Tax Life ............................................................................................................ 187

FORM ASSET [51] - LISTED PROPERTY / OTHER ................................................................................ 190 Overview .............................................................................................................................................. 190 General Depreciation ........................................................................................................................... 190 Listed Vehicles .................................................................................................................................... 190

Luxury auto (passenger) ............................................................................................................................ 190 Listed vehicle ............................................................................................................................................ 191 Sport utility vehicle ................................................................................................................................... 191 Exceptions for Sport utility vehicles ......................................................................................................... 191 Listed non-vehicle ..................................................................................................................................... 191

Additional Vehicle Information ........................................................................................................... 191 Expenses .............................................................................................................................................. 191 Section 280F Recapture ....................................................................................................................... 191

FORM [53] - OTHER TAB .............................................................................................................................. 194 Overview .............................................................................................................................................. 194

FORM [54] — FORMS 4562 – BONUS ELECTION ................................................................................... 197 Overview .............................................................................................................................................. 197 Bonus Depreciation Election ............................................................................................................... 197

FORM [55A] — FORMS 4797 AND 6252 ...................................................................................................... 199 Overview ........................................................................................................................................... 199

Overrides ................................................................................................................................................ 199 Sale Information ............................................................................................................................ 201 Form 4797, Part III — Recapture ........................................................................................... 202 Form 6252 — Current Year Installment Sale ..................................................................... 202 Form 6252 — Related Party Installment Sale Information ........................................... 202

FORM [55B] — LIKE-KIND EXCHANGES ................................................................................................ 205 Overview ........................................................................................................................................... 205


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Form 8824 — Like-Kind Exchanges — General Information ........................................ 205 Part I — Information on the Exchange ................................................................................. 206 Part III — Computation of Gain and Basis .......................................................................... 206 Related Party Exchanges ............................................................................................................ 207

FORM [55C] — BUSINESS CASUALTY / THEFT LOSS ......................................................................... 210 Overview .............................................................................................................................................. 210

Asset transfer ............................................................................................................................................. 210 Form 4684 — General Information ..................................................................................................... 210 Business / Income Producing Properties.............................................................................................. 210 Business / Income Producing Replacement Information ..................................................................... 212

FORM [70] - DEDUCTIONS AND INVESTMENT INTEREST ................................................................ 214 Overview .............................................................................................................................................. 214 Deductions ........................................................................................................................................... 214 Form 4952 - Investment Interest Expense ........................................................................................... 218

FORM [71] - CHARITABLE DEDUCTION ................................................................................................. 222 Overview .............................................................................................................................................. 222 Schedule A - Charitable Deduction ..................................................................................................... 222

FORM [72] - PERSONAL CASUALTY AND THEFT LOSS ..................................................................... 225 Overview .............................................................................................................................................. 225 Form 4684 - Personal Use Properties .................................................................................................. 225

FORM [73] - REVENUE PROCEDURE 2009-20 (PONZI) ......................................................................... 228 Overview .............................................................................................................................................. 228 Computation of Deduction ................................................................................................................... 228 Required Statements and Declarations ................................................................................................ 228

FORM [74] - SCHEDULE B AND ACCOUNTING INCOME ................................................................... 230 Overview .............................................................................................................................................. 230 Income Distribution Deduction ........................................................................................................... 230 Accounting Income .............................................................................................................................. 231

FORM [75] - BALANCE SHEET ................................................................................................................... 234 Overview .............................................................................................................................................. 234 Assets ................................................................................................................................................... 234 Liabilities ............................................................................................................................................. 234 Net Assets ............................................................................................................................................ 234

FORM [76A] - SPLIT INTEREST CHARITABLE TRUST INFORMATION ......................................... 237 Overview .............................................................................................................................................. 237 Form 5227 - General Information ........................................................................................................ 237 Part II - Excluded Gross Income .......................................................................................................... 237 Part III - Distributions for Charitable Purposes ................................................................................... 237 Part V - Annuity and Unitrust Information .......................................................................................... 238

FORM [76B] - SPLIT INTEREST CHARITABLE TRUST STATEMENTS ........................................... 241 Overview .............................................................................................................................................. 241 Part VI-A - Statements Regarding Activities....................................................................................... 241 Part VI-B - Questions 75 and 76 .......................................................................................................... 241 Part VI-B - Questions 77 through 80 ................................................................................................... 241 Personal Benefit Contracts ................................................................................................................... 242


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FORM [76C] - SPLIT INTEREST CHARITABLE INCOME .................................................................... 244 Overview .............................................................................................................................................. 244 Part VII, Section A & B ....................................................................................................................... 244 Part VII, Section C - Pooled Income Funds ......................................................................................... 244 Part VII, Section D - Charitable Remainder Trusts ............................................................................. 244 Schedule A – Distributions, Assets, Donor Information ..................................................................... 244

FORM [80A] - BUSINESS CREDITS ............................................................................................................ 247 Overview .............................................................................................................................................. 247 Form 3800 - General Business Credits ................................................................................................ 247 Form 5884 - Work Opportunity Credit ................................................................................................ 248 Form 6765 - Increasing Research Activities Credit ............................................................................. 248

FORM [81A] - CREDIT FOR PRIOR YEAR ALTERNATIVE MINIMUM TAX .................................. 250 Overview .............................................................................................................................................. 250 Prior Year Information......................................................................................................................... 250 Form 8801 Worksheet ......................................................................................................................... 251

FORM [81B] - FOREIGN TAX CREDIT ...................................................................................................... 254 Overview .............................................................................................................................................. 254 Form 1116 - General Information ........................................................................................................ 254 Part I - Income / Loss ........................................................................................................................... 254 Part II - Taxes Paid or Accrued ........................................................................................................... 256 Part III - Credit Calculation ................................................................................................................. 257

FORM [81C] - INVESTMENT TAX CREDIT.............................................................................................. 259 Overview .............................................................................................................................................. 259 Rehabilitation Credits .......................................................................................................................... 259 Energy Credits ..................................................................................................................................... 259 Other Investment Credits and Passive Carryovers ............................................................................... 259

FORM [82A] - TAXES PAID ON FUELS PAGE 1 ...................................................................................... 261 Overview .............................................................................................................................................. 261

FORM [82B] - TAXES PAID ON FUELS PAGE 2....................................................................................... 263 Overview .............................................................................................................................................. 263

FORM [82C] - TAXES PAID ON FUELS PAGE 3 ...................................................................................... 265 Overview .............................................................................................................................................. 265

FORM [82D] - TAXES PAID ON FUELS PAGE 4 ...................................................................................... 267 Overview .............................................................................................................................................. 267

FORM [83] - ADDITIONAL CREDIT INFORMATION ............................................................................ 269 Overview .............................................................................................................................................. 269 Form 1116 - Foreign Tax Credits ........................................................................................................ 269

FORM [84] - OTHER ASSET INFORMATION .......................................................................................... 271 Overview .............................................................................................................................................. 271 Form 4797 Section 280F Deductions .................................................................................................. 271

FORM [86] - ADDITIONAL TAXES ............................................................................................................. 273 Overview .............................................................................................................................................. 273 Credit Recaptures ................................................................................................................................. 273 Additional Taxes .................................................................................................................................. 274


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FORM [87A] - ALTERNATIVE MINIMUM TAX ...................................................................................... 276 Overview .............................................................................................................................................. 276 Schedule I - Adjustments and Preference Items .................................................................................. 276 Schedule D - Items Recalculated for AMT.......................................................................................... 278

FORM [88] - SECTION 645 ELECTION ...................................................................................................... 280 Overview .............................................................................................................................................. 280 Form 8855 ............................................................................................................................................ 280 Qualified Revocable Trust Information ............................................................................................... 280

FORM [89] - TWO YEAR COMPARISON .................................................................................................. 282 Overview .............................................................................................................................................. 282 Income ................................................................................................................................................. 282 Deductions ........................................................................................................................................... 282 Taxes and Payments ............................................................................................................................ 282 Other Information ................................................................................................................................ 282 Form 5227 Information ........................................................................................................................ 282

FORM [90] – UNIVERSAL EXPLANATION AND GENERAL FOOTNOTES ...................................... 284 Overview .............................................................................................................................................. 284 Universal Explanations ........................................................................................................................ 284

FORM [91A] - NET OPERATING LOSS COMPUTATION ...................................................................... 286 Overview .............................................................................................................................................. 286 General Information ............................................................................................................................. 286 Net Operating Loss .............................................................................................................................. 287

FORM [91B] - NET OPERATING LOSS CARRYOVERS ......................................................................... 289 Overview .............................................................................................................................................. 289

Prior-year returns ....................................................................................................................................... 289 Computation of Decrease in Tax ......................................................................................................... 289 Schedule B - NOL Carryover .............................................................................................................. 290 NOL Carryover - Electing Small Business Trust ................................................................................ 290

FORM [92] - POWER OF ATTORNEY AND TAX INFORMATION AUTHORIZATION .................. 292 Overview .............................................................................................................................................. 292 General Information ............................................................................................................................. 292 Representative / Information ............................................................................................................... 292 Tax Matters Information ...................................................................................................................... 292

FORM [93] - ASSET ACQUISITION STATEMENT .................................................................................. 295 Overview .............................................................................................................................................. 295 General Information ............................................................................................................................. 295 Original Statement of Assets Transferred ............................................................................................ 295 Supplemental Statement ...................................................................................................................... 296

FORM [94] - DOMESTIC PRODUCTION ACTIVITIES ........................................................................... 298 Overview .............................................................................................................................................. 298

FORM [95A] - AMENDED RETURN ............................................................................................................ 300 Overview .............................................................................................................................................. 300 General Information ............................................................................................................................. 300

FORM [95C] - CONSENT TO DISCLOSE, USE TAX RETURN .............................................................. 302 Overview .............................................................................................................................................. 302


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Taxpayer Consent ................................................................................................................................ 302

FORM [95D] - CHANGE OF ADDRESS - BUSINESS ................................................................................ 304 Overview .............................................................................................................................................. 304 Address Information ............................................................................................................................ 304

FORM [95F] - REPORT OF FOREIGN BANK ACCOUNTS .................................................................... 307 Overview .............................................................................................................................................. 307 FinCen Form 114 - General Information ............................................................................................. 307

FORM [95G] - REPORT OF FOREIGN BANK ACCOUNTS, PAGE 2 ................................................... 309 Overview .............................................................................................................................................. 309 Financial Account Information ............................................................................................................ 309 Joint Accounts or No Interest .............................................................................................................. 309

FORM [95I] - SMALL EMPLOYER HEALTH INSURANCE PREMIUMS (1041) ................................ 311 Overview .............................................................................................................................................. 311 Form 8941 Credit ................................................................................................................................. 311

FORM [95J] - GENERAL BUSINESS CREDIT CARRYOVER ................................................................ 313 Overview .............................................................................................................................................. 313 Carryover Information ......................................................................................................................... 313

FORM [95K] - TAX PROJECTION WORKSHEET ................................................................................... 315 Overview .............................................................................................................................................. 315 Income ................................................................................................................................................. 315

FORM [95L] - TAX PROJECTION WORKSHEET, PAGE 2 ................................................................... 317 Overview .............................................................................................................................................. 317 Taxes and Payments ............................................................................................................................ 317

FORM [95M] - APPLICATION TO ADOPT, CHANGE OR RETAIN TAX YEAR ............................... 319 Overview .............................................................................................................................................. 319 Ruling Request ..................................................................................................................................... 319

FORM [96A] - STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETS ................................. 321 Overview .............................................................................................................................................. 321 General Information ............................................................................................................................. 321 Tax Items Attributable to Assets ......................................................................................................... 321 Excepted Foreign Financial Assets ...................................................................................................... 321

FORM [96B] - STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETS, PAGE 2 ................. 323 Overview .............................................................................................................................................. 323 Foreign Deposit and Custodial Accounts ............................................................................................ 323 Other Foreign Assets ........................................................................................................................... 323

FORM [96C] - REPORTABLE TRANSACTION DISCLOSURE STATEMENT ................................... 325 Overview .............................................................................................................................................. 325 Reportable Transaction Information .................................................................................................... 325

FORM [96D] - REPORTABLE TRANSACTION - ENTITIES INVOLVED IN TRANSACTION ....... 327 Entity Involved in Transaction ............................................................................................................ 327

FORM [96E] - DISCLOSURE STATEMENTS ............................................................................................ 329 General Information ............................................................................................................................. 329 Parts I & II ........................................................................................................................................... 329


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FORM [97] - TRUST ACCUMULATION OF CHARITABLE AMOUNTS ............................................. 331 Overview .............................................................................................................................................. 331 Form 1041-A - Charitable Distributions Information .......................................................................... 331 Balance Sheet - Assets ......................................................................................................................... 331 Balance Sheet - Liabilities ................................................................................................................... 331 Balance Sheet - Net Assets .................................................................................................................. 331

FORM [98] - NONRESIDENT ALIEN RETURN ........................................................................................ 333 Overview .............................................................................................................................................. 333 General Information ............................................................................................................................. 333 Income Not Effectively Connected ...................................................................................................... 333 Capital Gains and Losses Not Effectively Connected ......................................................................... 334

FORM [99A] - RETURN OF FOREIGN TRUST WITH US OWNER ...................................................... 336 Overview .............................................................................................................................................. 336 US Agent Information ......................................................................................................................... 336

FORM [99B] - FOREIGN TRUST BALANCE SHEET ............................................................................... 338 Overview .............................................................................................................................................. 338 Foreign Trust Assets ............................................................................................................................ 338 Foreign Trust Liabilities and Net Worth .............................................................................................. 338

FORM [99C] - TRANSACTIONS WITH FOREIGN TRUSTS, RECEIPT OF FOREIGN GIFTS ....... 340 Overview .............................................................................................................................................. 340 Form 3520 - General Information ........................................................................................................ 340 Form 3520-2 - Foreign Trust Transfers and Obligations ..................................................................... 341 Form 3520-3 - Foreign Trust Distributions and Gifts .......................................................................... 341

FORM [99D] - FOREIGN TRUST TRANSFERS AND OBLIGATIONS.................................................. 343 Overview .............................................................................................................................................. 343 Form 3520 - General Information ........................................................................................................ 343

FORM [99E] - FOREIGN TRUST DISTRIBUTIONS AND GIFTS .......................................................... 345 Overview .............................................................................................................................................. 345 Form 3520 - General Information ........................................................................................................ 345

FORM [CA1] - CALIFORNIA GENERAL, OTHER INFORMATION, AMENDED RETURN ........... 347 Overview .............................................................................................................................................. 347 General Information ............................................................................................................................. 347 Other Information ................................................................................................................................ 348 Amended Return Information .............................................................................................................. 348

FORM [CA2] - CALIFORNIA CAPITAL GAINS AND NET INCOME .................................................. 351 Overview .............................................................................................................................................. 351 Capital Gains and Losses ..................................................................................................................... 351 Schedule D-1 Additional Information ................................................................................................. 351 Net Income ........................................................................................................................................... 352 Expenses Attributable to Source Income ............................................................................................. 352

FORM [CA3] - CALIFORNIA DEDUCTIONS ............................................................................................ 354 Overview .............................................................................................................................................. 354 Deductions ........................................................................................................................................... 354 Investment Interest Expense ................................................................................................................ 354 Schedule B - Income Distribution Deduction ...................................................................................... 355


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FORM [CA4] - CALIFORNIA CHARITABLE RETURNS ........................................................................ 358 Overview .............................................................................................................................................. 358 Schedule A - Charitable Deduction ..................................................................................................... 358 Form 541-A - General Information and Charitable Deduction ............................................................ 359 Form 541-A or 541-B - Distributions .................................................................................................. 359 Form 541-A or 541-B - Balance Sheet ................................................................................................ 360

FORM [CA5A] - CALIFORNIA ESTIMATES ............................................................................................. 362 Overview .............................................................................................................................................. 362 Overpayment ........................................................................................................................................ 362 Form 541-ES ........................................................................................................................................ 362

FORM [CA5B] - CALIFORNIA PAYMENTS, EXTENSION, PENALTIES ........................................... 366 Overview .............................................................................................................................................. 366 Payments and Other Taxes .................................................................................................................. 366 Extension ............................................................................................................................................. 367 Penalties and Interest ........................................................................................................................... 367

FORM [CA6A] - CALIFORNIA 1041 PASS-THROUGH GENERAL, INCOME, FINAL YEAR ........ 371 Overview .............................................................................................................................................. 371

FORM [CA6B] - CALIFORNIA 1041 PASS-THROUGH AMT, OTHER, PASSIVES ........................... 373 Overview .............................................................................................................................................. 373

FORM [CA8A] - CALIFORNIA BUSINESS PROFIT AND LOSS PAGE 1 ............................................ 375 Overview .............................................................................................................................................. 375

FORM [CA8B] - CALIFORNIA BUSINESS PROFIT AND LOSS PAGE 2, OTHER, PASSIVES ....... 377 Overview .............................................................................................................................................. 377

FORM [CA9A] - CALIFORNIA RENT AND ROYALTY PROPERTY INCOME AND EXPENSE .... 379 Overview .............................................................................................................................................. 379

FORM [CA9B] - CALIFORNIA RENT AND ROYALTY PROPERTY OTHER AND PASSIVE ........ 381 Overview .............................................................................................................................................. 381

FORM [CA10A] - CALIFORNIA FARM GENERAL AND INCOME ...................................................... 383 Overview .............................................................................................................................................. 383

FORM [CA10B] - CALIFORNIA FARM EXPENSES, OTHER, PASSIVES ........................................... 385 Overview .............................................................................................................................................. 385

FORM [CA11] - CALIFORNIA DISTRIBUTIONS ..................................................................................... 387 Overview .............................................................................................................................................. 387

FORM [CA12] - CALIFORNIA DEPRECIATION AND AMORTIZATION .......................................... 389 Overview .............................................................................................................................................. 389 General Information ............................................................................................................................. 389

FORM [CA13] - CALIFORNIA POWER OF ATTORNEY ....................................................................... 391 Overview .............................................................................................................................................. 391 General Information ............................................................................................................................. 391 Representative Information .................................................................................................................. 391 Paper Filing Exceptions ....................................................................................................................... 391

FORM [CA14] - CALIFORNIA 1065 AND 1120S PASS-THROUGH GENERAL AND INCOME....... 393


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Overview .............................................................................................................................................. 393

FORM [CA15] - CALIFORNIA 1065 AND 1120S PASS-THROUGH DEDUCTIONS ........................... 395 Overview .............................................................................................................................................. 395

FORM [CA16] - CALIFORNIA 1065 AND 1120S PASS-THROUGH AMT, OTHER, PASSIVES ....... 397 Overview .............................................................................................................................................. 397

FORM [CA17] - CALIFORNIA SALE OF BUSINESS PROPERTY ........................................................ 399 Overview .............................................................................................................................................. 399

FORM [CA18A] - CALIFORNIA LIKE-KIND EXCHANGES .................................................................. 401 Overview .............................................................................................................................................. 401

FORM [CA18B] - CALIFORNIA LIKE-KIND EXCHANGES OUTSIDE CALIFORNIA .................... 403 Overview .............................................................................................................................................. 403

FORM [CA18C] - PRIOR YEAR LIKE-KIND EXCHANGES OUTSIDE CALIFORNIA .................... 405 Overview .............................................................................................................................................. 405

FORM [CA19] - CALIFORNIA PRIOR YEAR INSTALLMENT SALES ............................................... 407 Overview .............................................................................................................................................. 407

FORM [CA20] - CALIFORNIA PRIOR YEAR BUSINESS CASUALTY AND THEFT LOSS ............. 409 Overview .............................................................................................................................................. 409

FORM [CA21] - CALIFORNIA BUSINESS CASUALTY AND THEFT LOSS ....................................... 411 Overview .............................................................................................................................................. 411

FORM [CA22] - CALIFORNIA ALTERNATIVE MINIMUM TAX ......................................................... 413 Overview .............................................................................................................................................. 413 Adjustments and Preferences ............................................................................................................... 413 Form 3510 - Credit for Prior Year Minimum Tax ............................................................................... 415 Form 3510 Worksheet ......................................................................................................................... 415

FORM [CA23] - CALIFORNIA ACCUMULATION DISTRIBUTION .................................................... 417 Overview .............................................................................................................................................. 417 Schedule J ............................................................................................................................................ 417

FORM [CA24] - CALIFORNIA CREDITS ................................................................................................... 419 Overview .............................................................................................................................................. 419 Schedule P ........................................................................................................................................... 419 Form 3521 - Low-Income Housing Credit .......................................................................................... 419 Election to Increase Basis of Credit Property ...................................................................................... 420

FORM [CA26] - CALIFORNIA CREDIT FOR OTHER STATE INCOME TAXES PAID ................... 422 Overview .............................................................................................................................................. 422 Other State Tax Credit ......................................................................................................................... 422

FORM [CA27] - CALIFORNIA SECTION 179 PASS-THROUGH SALE ............................................... 424 Overview .............................................................................................................................................. 424

FORM [CA28] - CALIFORNIA PERSONAL CASUALTY AND THEFT LOSS..................................... 426 Overview .............................................................................................................................................. 426

FORM [CA29] - CALIFORNIA ACCUMULATIONS AND NOL CARRYOVERS ................................ 428


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Overview .............................................................................................................................................. 428 Form 541-B, Part III - Accumulation Schedule ................................................................................... 428 Net Operating Loss .............................................................................................................................. 428 Capital Losses ...................................................................................................................................... 429 Section 1231 Losses ............................................................................................................................ 430 Investment Interest ............................................................................................................................... 430 Form 3510 ............................................................................................................................................ 430

FORM [CA30] - CALIFORNIA ELECTRONIC FILING ........................................................................... 433 Overview .............................................................................................................................................. 433 General Information ............................................................................................................................. 433 Personal Identification Number (PIN) ................................................................................................. 433

FORM [CA31] - CALIFORNIA ELECTRONIC FUNDS WITHDRAWAL ............................................. 436 Overview .............................................................................................................................................. 436 Fiduciary Income Tax, Form 541 ........................................................................................................ 436 Fiduciary Estimates, Form 541-ES ...................................................................................................... 436 Account Information ............................................................................................................................ 436

FORM [CA32] - CALIFORNIA RESIDENT & NONRESIDENT WITHHOLDING TAX STATEMENT............................................................................................................................................................................. 438

Overview .............................................................................................................................................. 438

FORM [CA33] - CALIFORNIA REAL ESTATE WITHHOLDING TAX STATEMENT ...................... 440 Overview .............................................................................................................................................. 440

FORM [CA34] - CALIFORNIA CHANGE OF ADDRESS ......................................................................... 442 Overview .............................................................................................................................................. 442 Address Information ............................................................................................................................ 442

FORM [CA35] - CALIFORNIA REVENUE PROCEDURE 2009-20 (PONZI) ........................................ 444 Overview .............................................................................................................................................. 444

FORM [CA36] - CALIFORNIA WITHOLDING PAYMENTS .................................................................. 446 Overview .............................................................................................................................................. 446 Form 592 - General Information .......................................................................................................... 446 Previous Payments ............................................................................................................................... 446

APPENDIX A - CROSS REFERENCE .......................................................................................................... 448 Federal - Sort by form number ............................................................................................................ 448 California - Sort by form number ........................................................................................................ 450 Federal - Sort by form description ....................................................................................................... 451 California - Sort by form description ................................................................................................... 453


14

General Procedures

Overview The following are general guidelines that will help assure that your returns are processed accurately, swiftly, and at a lower cost to you. Failure to follow these general guidelines may, in some cases, result in extra processing charges. Where such charges apply, they are noted in the instructions. We strongly recommend that all users take a few moments to review this section before preparing a return.

Entering Return Information Before you begin to prepare a return, take a moment to familiarize yourself with some of the procedures that should be used when entering certain types of data. Whether you enter data onto printed input forms or directly into a computer, you should familiarize yourself with these procedures. Print legibly, do not use cursive handwriting.

Input Forms ExacTax has designed special versions of the most commonly used ExacTax input forms to facilitate ease of use for service bureau clients. These forms can be used in conjunction with the other ExacTax® forms to submit all input to ExacTax.

For quick referral and organization purposes, a number has been assigned to each of the forms using the following numerical ranges:

Forms Type 1 - 19 General Information 20 - 49 Income 50 – 59 Depreciation 60 – 69 Adjustments to Income70 - 79 Itemized Deductions 80 - 84 Credits 85 - 89 Taxes 90 - 99 Other

These numbers are intended to make it easier for the preparer to locate forms but they are not part of the ExacTax® system. The actual ExacTax® form (or form) name is printed within a bold box in the upper left-hand corner, such as 1040 on the General Information form [1]. In some cases ExacTax has combined two or more separate ExacTax® forms into a single ExacTax form. On these input forms a bold box will surround the ExacTax® form name at the beginning of each new form section. See Input Form Rent [31] with sections for Rent-2 and StCO. When making telephone re-run changes, you must refer to the form name, activity unit (when applicable), section and box or field that you are changing.

T/S/J Fields Enter "T" for taxpayer, "S" for spouse, or "J" for joint. This code box is used to indicate that an entry or form should be allocated to the taxpayer, the spouse, or should be split evenly between the two. This type of code box is only for use with married filing joint returns, and when a T/S/J code box is left blank, the system will assume that the entry or form should be allocated to the taxpayer.

For example, enter an "S" in Code Box 2 of Input Form 2106 [72] to indicate that the spouse's name should be printed on Form 2106.

Check Boxes Enter a check mark or an "X" in the box denoted with the check symbol. For example, check Box 14 on Input Form 1040 [1] to indicate that the taxpayer is legally blind.

Dates There are generally two types of date code boxes: six-digit dates (mmddyy) and eight-digit dates (mmddyyyy). The format is normally indicated as part of the box description. You must always enter all six digits or eight digits. To print the word "VARIOUS" on a government form where a date is required, enter the letter “V” in the date field. Various cannot be used to replace all date fields; some fields require a date (ie. date acquired on depreciation).


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For example, in Box 12 on Input Form 8283P1 [73A], you would enter January 1, 2010 as 01 01 09, or enter a “V” for “Various” anywhere in the date field.

Percentage Entries When a percentage is required in an input field, the field description will indicate the maximum number of digits allowable before and after the decimal point, such as xxx.xxxx. All places to the right of the decimal must be filled in. For example, valid entries would be 83.7500, 20.24 and 33.33. One hundred percent should be entered as 100. All places to the right of the decimal point will be zero filled when an amount is not entered.

Alpha or Text Information A text or "alpha" code box will denote the maximum number of characters (a character consists of a letter, number, punctuation mark or a space) that it can accept with a number in parentheses. For example, the street address in Box 41 on Input Form 1040 can be a maximum of 35 characters, and the code box description is "Address (35)". If the entry exceeds the code box capacity, the entry will be truncated when the return prints.

Descriptions Never change, whiteout or tape over any of the preprinted code box descriptions that are printed on an input form. ExacTax uses the code box number to identify your written data, not the code box description.

Coded Areas vs. Shaded Areas Only data entered in code boxes is used in the calculation of the return. Any notes or entries made in the shaded areas of an input form are for accountant notes and do not become a part of the return.

Always Use a Pencil We require that you print legibly using a #2 soft lead pencil. Never type entries or use ink on the computer-generated input forms. A procedure charge will apply for typed or ink entries.

Do Not Enter Pennies or Cents When entering amount fields, always enter a whole dollar amounts. A procedure charge will apply if fractional dollar amounts are used anywhere in the return.

Decimals and Commas Do not use decimals or commas when entering amounts. Only enter decimals where specified.

Illegible Entries Poorly written or illegible forms may be subject to a “No free rerun” status. This will be denoted in the Notes to Accountant on the Form PI.

Do Not Staple Input Forms Paper clip all schedules, statements and W-2 envelopes to the left center behind the Input Forms. Do not staple anything together, including W-2's. Procedure charges will apply if staples are used.

Input Form Assembly We suggest that you keep a copy of all input forms, source documents and supporting schedules that you send to ExacTax for processing. This can be helpful if we need to contact you to clarify data while the return is still in process. When submitting input forms to ExacTax, assemble and paper clip the input forms, source documents and supporting schedules as follows:

1. Input Form PI (Never copy or alter the Form PI or use a proforma from another return. This form uses a unique log number for each return and can never be duplicated without destroying the integrity of the original proformaed tax return data assigned to that log number.) Two procedure charges will apply for any copied, altered or invalid Form PI.

2. Client Properties (if needed for additional states)

3. Input Forms in numerical order except for sub-form input forms (i.e. depreciation or Keogh) which are placed immediately after the applicable schedule to which they relate (i.e. Business, Rental, K-1).

4. Other forms or supporting schedules to be copied and attached to the return.

5. The federal and state copies (only copies B and 2) of Form W-2, enclosed in an envelope. (Put your accountant number on the back of each W-2).

Note: A return sent without a Form PI or a copied or altered Form PI or using a proforma from another return will be subject two procedure charges.


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Do not send any unnecessary supporting documents such as 1099's, medical bills or escrow papers. All documents submitted must be letter size (8 1/2" x 11") and printed on one side only.

W2s and Attachments Send only the Federal (copy B) and state copies (copy 2) of Form W-2. If the "B" or state copy is not available and you are submitting another copy, mark it "B" or "state" copy. Never send copy "C" to ExacTax. Do not staple W-2 forms together. All items attached to the input forms MUST have your account number clearly written on them. You can write on the back side. For W2 forms, write your number on the outside of the envelope containing the W2s. Attachments for photocopying must have your account number written on each page. If these items should become separated and have no identification we may not be able to associate it to the correct return.

Deleting Proforma Pages Never remove an input form with proforma data on it. Pre-printed data is in the input file and to remove it the item must be deleted by the data entry operator. If you discard the form or cover over the item, our operator will not delete the information. Just cross out the input form with a red pencil.

Helpful hints for processing an accurate and complete return The following are general guidelines that will help assure that your returns are processed accurately, swiftly, and at a lower cost to you. Failure to follow these general guidelines may, in some cases, result in extra procedure charges. Where such charges apply, they are noted in the “Notes to Accountant” section of Form PI.

Make sure all forms are filled in completely and accurately.

Paper clip all schedules, statements and W-2 envelopes to the left center behind the Input Forms. Do not staple anything together, including input forms and W-2's.

Write dark enough so your entries can easily be seen by the Data Entry operator.

We require that you use a #2 pencil. If you are using a mechanical pencil we recommend using .07 lead.

Enter a check mark or an "X" in the box denoted with the check symbol . For example, check Box 14 on Input Form 1040 [1] to indicate that the taxpayer is legally blind.

Erased items should not be blurred or darkened out from erasure – make sure to completely erase errors and clearly write corrections.

Make sure Taxpayer Social Security Number on Form PI is the same as the Taxpayer Social Security Number on Form 1.

When deleting a line item use a red pencil to cross it out completely and clearly.

When deleting an entire form or form section use a red pencil to place an “X” through the entire form or section.

Make sure state(s) are indicated with residency status on Form PI.

Make sure processing options (Form PI) are filled in completely (i.e. special shipping instructions, expedite service, following year Tax Organizer request, etc).

When processing a proformaed return submit all of the input forms with proforma data that were originally sent to you. For deleting data or forms, see above.

Make sure depreciation input forms are placed immediately after the applicable schedule to which they relate (i.e. Business, Rental, K-1).

For any auto expense Total miles and the Business miles must be entered to have ExacTax compute the business use percentage.

Express Mail to ExacTax When sending packages to ExacTax via Express Mail, DO NOT send it to our PO Box; this will delay delivery by two days. Always send Express Mail to our street address: 1100 E Orangethorpe Ave., Suite 100, Anaheim, CA 92801

Correcting a return Free Reruns


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1040 reruns that are called in to the Telephone Rerun Department, or sent back to us for reprocessing by February 28, 2017 will be rerun at no additional charge. These reruns will only be free of charge if they reach ExacTax by February 28, 2017. This does not apply to RDE Processing.

Telephone Rerun Hotline

(844) 327-6740 or (714) 284-4802

Reruns after February 28, 2017 If an error is made by ExacTax in the processing of a return, any changes necessary to correct that error will be made at no charge. This applies to both Individual and Business returns. If rerunning a return due to an ExacTax error results in creating new billable forms/schedules, the applicable fee will be billed for those forms/schedules. If, in the process of doing a rerun to correct an ExacTax error, the preparer wishes to make additional corrections/changes other than the change to correct the error, the rerun will then become billable.

Billable Reruns Reruns to make preparer additions or corrections to returns are billable. If processing a billable rerun results in creating new billable forms/schedules (i.e. additional state/city return), the additional fee will be billed.

If you have received a completed return from ExacTax and need to make changes to the return, you may make these changes by telephone. Changes can only be made to computer Input Forms. Any changes to manual statements are the responsibility of the accountant.

There is a charge for a telephone rerun per 10 changes with a maximum of 30 changes. If you need to make more than 30 changes, you must send the return back for reprocessing. Attach a note to the return stating that it is an accountant rerun and indicate the changes or tell us if it is to be completely repunched.

1040 reruns are billable at $11.30 per 10 changes with a maximum of 30 changes.

Business reruns are billed at $24.00 (up to 20 partners or 15 changes), over 20 (40% of return fee)

Have the following information available when calling the Telephone Rerun Hotline:

Your ExacTax account number.

Method of shipment for the rerun, if different from the original return.

The number of changes you are going to make (limit 30).

The ExacTax log number shown on the top of Input Form PI.

Your client's last name.

The changes desired, indicating the input form, activity unit number, section and zip box numbers of any entries to be added, changed or deleted. Be sure to indicate a page or overflow number, if applicable. The person who is authorizing the changes.

Note: Telephone Rerun personnel are not trained to answer your input and technical questions. If you have questions regarding those areas, call Customer Support before calling in a Telephone Rerun.

Quality Control Billable Rerun Input forms that are submitted with incomplete information may lead to a Quality Control rerun billable at $10.95 ($22.00 for business returns) in order to generate an accurate return.

Words and numbers on input forms should not be subject to interpretation by ExacTax’s Data Entry operators. Poorly written or illegible forms will be photocopied as evidence and a record of the log number will be noted for the return. If a subsequent call is made by the preparer to make a correction to this return, it will be a billable rerun.

Input forms that are submitted with incomplete information may lead to a billable rerun to generate an accurate return. ExacTax will make all attempts to contact the preparer to get the information necessary to generate an accurate and complete return. If after two (2) business days, no contact can be established with the preparer, the return will be processed as is, or if unable to be processed it will be returned to the preparer. A record of the log number will be noted for this return. If a subsequent call is made by the preparer to make a correction to this return, it will be a billable rerun.

Reruns with Special Handling


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When special handling instructions, such as expedited processing, special shipping or a different shipping address, are entered on Input Form PI they remain in effect each time the return is reprocessed. Customer Support will normally reconfirm these items when entering a rerun. However it is the caller’s responsibility to confirm any changes to the original entries are made.

Changing a Return in Process

If you find it necessary to change a return after you have submitted your input forms but before you receive the completed return, call the Customer Support Department, not the Telephone Rerun Department. Have the following information available:

Your ExacTax account number.

Your firm name and telephone number.

Your client's name.

The changes needed, indicating the input form, activity unit number, section and zip box number and the entry. Also, indicate a page or overflow number, if applicable.

The person authorizing the change.

The date the input forms were sent to ExacTax and the method of shipment.

If the return is located before it has been processed, the change will be made and a procedure charge will be applied. If the return has already been processed, a rerun charge will apply.

Procedure Charges In addition to those noted previously, procedure charges per procedure will apply if:

It is necessary for ExacTax to complete an input sheet because an incorrect or incomplete form was submitted. Two procedure charges will apply per form.

If a proforma input form from another return is submitted. Procedure charges for each form submitted.

ExacTax must call you for additional information on a return. Procedure charges will apply per form.

Mail is received from your office with postage due a procedure charge will apply.

If it is necessary for ExacTax to add an input sheet to complete a return. Two procedure charges will apply per form.

Procedure charges will apply if it is necessary for ExacTax to contact the preparer to complete an input sheet.

Proforma Individual Current Year Proforma for the 1040 system is scheduled to begin printing and shipping the last week of December. Proforma will be provided for all returns processed through mid-December. The initial 1040 proforma will contain federal and California information. Proforma for returns that contain states other than California will be shipped as the state proforma becomes available.

Individual Prior Year Proforma To receive proforma based on 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 or 2014 1040 returns processed after the normal proforma run, please contact the Customer Support Department to order the proforma. There is a $5.00 charge per return plus shipping for 2005, 2006, 2007, 2008 2009, 2010, 2011, 2012, 2013 or 2014 proforma.

Fiduciary and Business Calendar Year To provide input forms as early as possible, the initial Fiduciary and Business proforma will ship with the federal forms and any states that are available. Shipping is scheduled to begin in early January. Proforma of other state forms will be shipped as soon as they become available.

Fiduciary and Business for fiscal year business Proforma for fiscal year business returns is automatically run on a monthly basis.

Customer and Technical Support To maintain our goal of superior customer support, our Customer Support Department is available to answer your questions about billing, input procedures, return status, and your technical tax questions. When calling for support, use the Customer Support Hotline (844-327-6740) and have your account number ready. When calling for RDE software support, please have access to your computer.


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Billing Queries and Reminders When requesting adjustments to your billing, state the problem in the comment section of your remittance and include it with your payment. Any problems or questions regarding billing queries may also be faxed directly to the Accounting Department at 714-999-6566. Requests for credit must be made in writing.

Remittance Envelopes When sending payments in the ExacTax pre-addressed “502 – Remittance” envelopes do not include anything other than your check and invoice. Our automated mail opener will slice any other documents into several pieces.

Do not change the pre-printed address and use for other correspondence. The Post Office only reads the address that is encoded in the bar code. Because of this we have received numerous letters intended for other destinations.


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2016 2016

Y

Confidential (Organizer, proforma and return) . . . . . . . .

Print Beneficiary Labels (Fiduciary Only) . . . . . . . . .

Reserved 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Include K-1 Filing Instructions . . . . . . . . . . . . . . . . .

Print K-1 Labels . . . . . . . . . . . . . . . . . . . . . . . . . .

Reserved 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bypass PRR Review . . . . . . . . . . . . . . . . . . . . . .

Bypass Error Control . . . . . . . . . . . . . . . . . . . . .

CheckingE/CVERKEY 2Audit

Notes to Accountant

Special Shipping Address *

ExacTax use only

Business Only

Notes to ExacTax

Resubmit

For additional state/city selectionsuse Form Client Properties of the

applicable return type.

ExacTax use only

Special Handling Instructions *

6ETXPI 01 11/15/16 ExacTax, Inc.

ExacTax

2015 Log Number:

Processing Options

Return Information

Name:

State Number 1 Resident

Preparer Name

Entity Type . . . .

Contact name, if different . . . [1]

D/B/A:

Special Handling Code * . . . . . . . . . . . . . . . . . . . . . .

Expedite Service *

Tax Organizer . . . . . . . . . . .(1040 Only, 1 = Yes, 2 = No)

Number of extra copies . . . . . . . . . . . . . . . . . . . . . .

Financial Statements . . . . . . . . . . . . .

[19]

[14][15][16]

[17][18]

[12]Photocopy: [44]Procedure(s):

A per return charge will be added for Special Handling

[10]

[11]

NPP[20]

DO NOTCOPY ORCHANGE

Firm Information

[26]Address:

City:

[22]

[23]

[24]State: [25]Zip:

Estimate Reminder Letters (1040 Only, 1 = Yes, 2 = No) [21]

PI

PIProcessing Instructions

Nonresident PY Resident Other type:

FED ONLY

State Number 2 Resident Nonresident PY Resident Other type:

State Number 3 Resident Nonresident PY Resident Other type:

[42]

[43]

[40]

[41]

[48]

[45]

[49]

Qty:

Code:

Code:

Qty:

[46]

[50]

[47]

[51]

Qty:

Code:

Code:

Qty:

Blank134678

33

1 = Hold for Pick-Up4 = Ship UPS Second Day *6 = Ship Regular Mail *

80 = Route Message Service *88 = Call When Ready *89 = Special Shipping (Address) *90 = Walsh Message Service *91 = Walsh Priority Service *93 = Ship UPS (Ground)96 = UPS Second Day *97 = Overnight by 10:00 am *

SPECIAL HANDLING CODES

= Ship Regular UPS (Default)= Hold for Pick-Up= Ship UPS Next Day (AM) *= UPS Second Day *= Ship Regular Mail *= Call When Ready *= UPS Next Day (PM) *

Saturday Delivery= UPS Next Day *

ExacTax (West) BTS (East)

[29]

[31][30]

SSN / EIN:

KEY 1

2016

[2]

[3]

[4]

[5]

[7]

[8]

[9](1 = Yes, 2 = No)

N

PI

*

Phone #:Fax #:

PI


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Input Form PI - Processing Information Input Form PI is required for every return, and contains processing instructions for the return including the state or city to be processed, the residency status, as well as other data vital to the return. Be sure the following is entered on every Form PI:

Accountant's name and ExacTax account number

Taxpayer's name, Social Security number

Additional services desired (i.e. Tax Organizer, expedite, special handling, etc.)

Form PI allows processing of up to three states. When processing more than three states, attach Input Form Client Properties for that entity after Form PI and indicate the additional state returns to be processed. For part-year and non-resident returns you will generally need to attach specific state input forms to report the required information.

If you have a special situation or item that needs attention you may enter a “Note to ExacTax” in the designated section.

Certain comments relating to return data may be printed in the “Notes to Accountant” area to alert you to items that may require attention. Check this area also for comments about items specific to that return when you receive the return back.

Never copy or alter the Form PI or use a proforma from another return. This form uses a unique log number for each return and can never be duplicated without destroying the integrity of the original proformaed tax return data assigned to that log number. Two procedure charges will apply for a copied, altered or invalid Form PI.

Special Handling Code Enter the code for "Special Handling" on Form PI under Processing Options, if you want the return to be shipped by a different method other than normal. If using Hold for Pickup (code "1") and you want to verify that the return is ready, the best time to call Customer Support is after 3:00 p.m.

Shipping Options and Rates* UPS Ground will remain the standard method of shipping returns back to our non-courier customers. There is a $4.90 per return shipping charge, ($6.40) per-return for delivery points classified by UPS as ‘residential’), added to your normal processing fee for all returns shipped via UPS. To utilize this method of delivery, your shipping address must be a street address; a P.O. Box address is not acceptable.

Selecting UPS enhanced shipping or other options will incur the following per-return charges:

Code Shipping Method Per Return Charge** Blank Regular UPS See Above* 1 Hold for Pick-up No Charge 3 UPS Next Day – 10:30 AM Guarantee $42.70 4 UPS 2nd Day $19.20 6 Regular US Mail $8.32 7 Call When Ready $4.00 8 UPS Next Day – 3:00 PM Guarantee $29.25 33 UPS Next Day Saturday $57.50 Zip 11 Confidential Handling $3.00 Zip 22 Special Shipping Address $4.00 Zip 26 Special Handling Instruction $4.00

**Prices subject to change.

Note: ExacTax does not give credit for UPS or free shipping when a package is misplaced by UPS.

Undeliverable Packages

The additional charge for an undeliverable UPS package (to any address) is $7.00.

Hold for Pick-Up

There is no additional charge for returns marked as “Hold for pick-up” at ExacTax. However, returns that are not initially marked as “Hold for pick-up” on Form PI and are subsequently picked-up will still be billed the shipping charge, if any, assigned to that return.

Note: Returns that are designated to be delivered by courier do not incur a default shipping charge when picked up at ExacTax.


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Reruns with Special Handling When special handling instructions, such as expedited processing, special shipping or a different shipping address, are entered on Input Form PI they remain in effect each time the return is reprocessed. Customer Support will normally reconfirm these items when entering a rerun. However it is the caller’s responsibility to confirm any changes to the original entries are made.

Expedite Service In general, this service is for a return where the preparer is requesting guaranteed one day turnaround time. By checking Form PI - Box #3, you will indicate your request to receive this preferential expedited processing service for an additional charge of $23.00 per Individual and $33.00 per Business return. Any return received and scanned in our Anaheim office by 12:30 pm will be ready for shipment, by your indicated method, the following business day by 4:30 pm.

Expedite Requirements

Mark “EXPEDITE” on the outside of envelopes containing at least one return marked for Expedite. Envelopes not marked “Expedite” may not be processed as expeditiously.

If the envelope is marked “EXPEDITE” and no return is marked for Expedite, all returns in the envelope will be treated as Expedite and billed accordingly.

Be sure to clearly mark the Expedite Box 3 on Form PI

► NOTE: Returns indicated for Expedite service are subject to output review in our Error Control Department and maybe delayed. If you do not want the return to be reviewed in ExacTax Error Control Department check box 42 on Form PI. Additionally, Expedite service does not include any special return delivery shipping (i.e. overnight/express delivery). Special return delivery must be indicated on Form PI - Box #2.

Bypass error control Check box 42, if you do not want the return to be reviewed in ExacTax Error Control Department. If you check this box, the return will not be eligible for a free rerun for any ExacTax error.

Bypass PRR review Check box 43, if you do not want ExacTax to stop this return with any difference on the Form PRR or the State PRR (i.e. Form CAPRR).

Tax Organizers Enter “1” in box 4 to have ExacTax prepare a Tax Organizer for the following year. The Organizer is a booklet containing selected information and amounts from the prior year’s return that allows the client to enter current year information and amounts. Enter “2” to turn this feature off. The Tax Organizers are normally shipped at the end of November.

Number of extra copies Enter the number of additional copies of the return desired in box 5. The basic package includes 3 copies of the Federal and state returns (Filing copy, Accountant’s copy, Client’s copy).

K-1 Filing Instructions Check box 7 to a request a copy of the Federal K-1 filing instructions to be collated with the partner’s copy of the Schedule K-1. The instructions will be provided for each partner in the partnership.

K-1 Labels Check box 8 to receive 2 mailing labels per shareholder.

Financial Statements Check box 9 on Form PI to generate Financial Statements to be included with the tax return. Additional Financial Statement options including the statement of cash flows may be found on Input Form 7. Two copies of the Financial Statement are provided. One will be bound and one will be unbound.

Beneficiary Labels Check box 10 to receive 2 mailing labels per beneficiary.

Confidential ExacTax will ship a confidential return (including organizer, proforma or financial statement) in a special envelope marked “Confidential” in red.

Estimate Reminder Letter Enter “1” in box 21 to request Client Estimate Reminder Letters. This will produce three letters including both federal and state information for the second, third and fourth vouchers. Enter “2” to turn this feature off.


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Special Shipping Addresses When entering a special shipping address on Form PI, remember that a P.O. Box always requires regular mail as the delivery method. Enter a code 6 in zip 2.

Special Handling instructions Enter any special handling instructions for this return.


24

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.


25

Form [1] - Fiduciary, Estate, Trust, General, Year End

Overview

Use this form to enter information for the estate or trust, the fiduciary, and other general information. ExacTax uses this information to calculate depreciation and complete Form 1041, 1041-QFT, 1040NR, or 5227.

Identification Information

Use this section to enter demographic information about the estate or trust and the fiduciary.

Estate / trust: Employer identification number

If this field is blank, enter the employer identification number (EIN) for the estate or trust. ExacTax updates the EIN / SSN field.

Estate / trust: Name / Name, continued

Enter the name of the estate or trust in these fields. Note that ExacTax does not wrap the lines for data entry; these are two separate fields.

Estate / trust: Name changed

Enter X if the name of the estate or trust changed during the year.

Estate / trust: Family name for electronic filing name control

If electronically filing this return, enter the family name of the estate or trust. ExacTax uses this information to calculate the name control for the electronic file.

The IRS determines the name control differently depending on how the Employer Identification Number (EIN) of the estate or trust was obtained.

If an internet application was used to request the EIN, the name control should be derived from the first four characters of the name of the estate or trust. For example, for the Homer J. Maple Estate, enter Maple in the field.

Name of estate or trust Family name Calculated name control

Frank Walnut, Estate, Alan Beech, Exec Walnut WALN

Jan Fir Trust FBO Patrick Redwood Chestnut Bank TTEE

Fir FIR

Maple-Birch Endowment Trust, John J. Willow Trustee

Maple MAPL

Trust No. 12100 FBO Margaret Laurel 1210 1210

0020 GNMA Pool 20 GNMA 20GN

Note: If you leave both the Family name for electronic filing name control field and the Name control (Force) field on Form ELF blank, the return will be rejected for electronic filing.

Fiduciary: SSN / EIN

Enter the fiduciary's taxpayer identification number. This information does not print on Form 1041 unless you enter X in the Fiduciary: Financial institution field. ExacTax uses this information for data sharing in all returns.


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Fiduciary: Name / … / Telephone number

Enter the fiduciary's name, title, address, and telephone number in these fields. This information prints in the heading of various forms throughout the return.

Note: If there is more than one fiduciary for this return, enter in these fields the information for the fiduciary that is responsible for signing Form 1041. Use the Fiduciary: Joint fiduciary information field in this section to enter information for the other fiduciaries.

Fiduciary: Joint fiduciary information

If there is more than one fiduciary for the return, enter the name and address information for the additional fiduciaries. ExacTax prints a statement with the return in accordance with Regulation 1.6012-3(c) and lists the joint fiduciaries with space for signatures, if desired.

Fiduciary: Financial institution

The fiduciary's taxpayer identification number does not print on Form 1041 unless you enter X in this field.

Fiduciary: Name for facsimile signature

If the fiduciary is sending a separate signature letter with a group of returns, enter the facsimile signature that ExacTax should print in the signature section of Form 1041.

Note: Per Revenue Ruling 68-500, a facsimile signature may be used only on Form 1041; therefore, the facsimile signature does not print on any other form that requires a signature, such as Forms 56, 1041-A, 1041-QFT, and 5227.

Date for signature line

To have ExacTax print a date on the signature line of Form 1041, 1041-A, 1041-QFT, 1040NR, or 5227 enter the date in this field. If this field is blank, a date does not print.

State of residency

Enter the state of residency of the estate or trust. ExacTax completes this field automatically with data entered in the State field in the fiduciary address. ExacTax uses this information in state depreciation calculations, state residency calculations, state allocation spreadsheets, and to determine which state to use for state-if-different (SID) Schedule K-1 financial data sharing.

Estate / Trust Information

Use this section to enter basic information for the estate or trust. ExacTax uses much of this information throughout the return.

Type of entity

Use the fieldview to select a return type. The following describes options and how they are used for processing the return. If the field is blank, ExacTax defaults the type of entity to a simple trust.

Type of Entity Form Beneficiary Allocation

Decedent's estate 1041 or 1040NR, exemption $600

No default allocation on Schedule K-1

Simple trust 1041 or 1040NR, exemption $300

100% of the lesser of net accounting income or distributable net income allocated on Schedule K-1


27

Type of Entity Form Beneficiary Allocation

Simple trust distributing corpus

1041 or 1040NR prepared as a complex trust, exemption $300


Complex trust 1041 or 1040NR, exemption $100


Qualified disability trust 1041 or 1040NR, exemption $4,050


ESBT (return has only S Corporation income)

1041, no exemption No distribution to beneficiaries

ESBT (return has non-S Corporation income)

1041 prepared as a complex trust / ESBT, exemption $100

No default allocation of non-S Corporation portion on Schedule K-1

Qualified Subchapter S trust

1041 prepared as a simple / grantor trust, exemption $300

Allocated only to first beneficiary; 100% of the lesser of net accounting income or distributable net income of the non-S Corporation portion allocated on Schedule K-1; 100% of S Corporation portion on Grantor / Agency Report

Grantor trust 1041, no exemption 100% allocated on Grantor / Agency Report

Agency relationship N/A 100% allocated on Grantor / Agency Report

Partial grantor trust (also includes Crummey Trusts, 5 x 5 Trusts, etc.)

1041 prepared as a complex / grantor trust, exemption $100

No default allocation of income entered for Form 1041 on Schedule K-1; 100% of income entered in View > Beneficiary Information > Partial Grantor allocated to beneficiary selected on Grantor / Agency Report

Bankruptcy estate - chapter 7

1041 prepared as a cover page for Form 1040

N/A

Bankruptcy estate - chapter 11

1041 prepared as a cover page for Form 1040

N/A

Pooled income fund Both 1041 and 5227 prepared


Qualified funeral trust 1041-QFT prepared with tax calculated per owner

N/A

Notes

You can electronically file all of the entity types when preparing Form 1041, except for the following: electing small business trust (ESBT), pooled income fund, qualified funeral trust, or bankruptcy estates.

For the ESBT and qualified subchapter S trust entity types, all income amounts entered in units of Form K1 with 2 in the Type field are excluded from Form 1041. ExacTax also provides an Electing Small Business and Qualified Subchapter S Trust Worksheet that prints the income and deduction amounts as they would appear on Form 1041 for other types of trusts.

Form 1040NR, only one of the following entity types should be used: simple trust, simple trust distributing corpus, decedent's estate, complex trust, or qualified disability trust.

Decedent's social security number


28

Enter the decedent's Social Security number. This information is used on federal Forms 56 and 8855 and on state returns.

Bankruptcy estate - tax from Form 1040

Enter the amount of tax calculated on Form 1040 (including the Net Investment Income Tax, if applicable) for the bankruptcy estate. ExacTax assumes Form 1040 has already been completed and prepares Form 1041 only as a transmittal for that return.

Qualified funeral trust - contract information

Enter the pre-need contract owner names, contract values, and termination dates, if applicable. Use additional columns to enter state return information as needed. For a composite return (more than one owner), ExacTax uses the contract values to allocate the income and calculate the tax for Form 1041-QFT, line 13.

Split-interest trust type

Enter the code that represents the type of charitable trust or use the fieldview to make the selection.

Notes

ExacTax prints Form 5227 if there is an entry in this field or if Pooled income fund is entered in the Type of entity field on this form.

If you enter 1 or 5 in this field, ExacTax prints both Forms 1041 and 5227.

If you enter "Complex trust" in the Type of entity field, the beneficiary information prints on Schedule K-1.

If you enter "Grantor trust" in the Type of entity field, the beneficiary information prints on the Grantor / Agency Report.

If you enter a code in this field, ExacTax marks the Described in section 4947(a)(2) checkbox on Form 1041, Page 1. This information is also used in the header section of Form 5227, Page 1.

If you enter 5 in this field, enter a description in the Other entity type description field on Form SIT.

Prepare Form 1040NR

Enter X to calculate Form 1040NR using trust tax rules instead of Form 1041.

Note: Form 1040NR must be filed on paper is not eligible for electronic filing.

Initial / final return

Enter a code to indicate this is an initial return, a final return, or both for Form 1041, 1041-QFT, 1040NR, or 5227. This is the only place to indicate this type of return status. If a code is entered for a final return, ExacTax marks the final return checkbox on Form 1041, Form 1041-QFT, Form 5227, Schedule K-1 (Form 1041), Schedule K-1 Equivalent (Form 1040NR), and on the Grantor / Agency Report.

Date of termination

Enter the closing or termination date of the estate or trust. For the final return of a charitable remainder unitrust, ExacTax uses this information to calculate the unitrust distribution on Form 5227.


29

Superseding return

Enter X in this field if this is a subsequent return filed before the original due date (including extensions) of the return. A superseding return is considered the original return because the superseding return replaces any other return previously filed.

If you mark this field and electronically file the return, ExacTax/1041 includes the information in the electronic file. If the return is paper filed, ExacTax prints "Superseding Return" at the top of Form 1041.

General Information

Use this section to enter general footnotes for the return and beneficiaries, and tax year-end information.

IRS may discuss return with preparer

Enter 1 to indicate that the IRS is authorized to discuss the return with the preparer or enter 2 to indicate that the IRS is not authorized to discuss the return with the preparer. If you leave this field blank, neither checkbox is marked in the signature section of Form 1041, Form 1041-QFT, or Form 1040NR.

Special processing

Enter IRS special processing information, including disaster relief designations. The information entered is displayed at the top of the return you are filing.

Note: If you electronically file Form 1041, the special processing information is not included in the electronic file.

General footnote

Enter notes to add to Form 1041. Do not use this field to attach notes to Schedules K-1 or Grantor / Agency Reports. You can enter these notes as additional information in View > Beneficiary Information or in the Schedule K-1 / Grantor Report general footnote field.

Note: Word wrap is available in this field.

Schedule K-1 / Grantor Report general footnote

Enter information to appear on every beneficiary's Schedule K-1. This information also prints on the Grantor / Agency Report when the Type of entity is Grantor trust or Agency relationship. If there is a footnote for a specific beneficiary but not for all beneficiaries, use the field to enter that information in the Additional information field in View > Beneficiary Information.

Notes

This information does not print on the Grantor / Agency Report when the Type of entity is a qualified subchapter S trust or a partial grantor trust. Use the Qualified subchapter S trust - Additional information field in View > Beneficiary Information > Federal tab or the Additional information field in the View > Beneficiary Information > Federal tab > Partial Grantor section to enter additional information to include on the Grantor / Agency Report for those types of returns.

Word wrap is available in this field.

Suppress on next year's proforma

Enter X to indicate that the client's data should not proforma next year. If you enter X, ExacTax will not include this client in the range of clients selected to proforma in next year's application.


30

Note: Entering X is not necessary for final returns. A return marked as final in the current year is not available to proforma to the next year.

Tax year: Beginning, if short year

If the tax year end is a fiscal year end or a short tax year, ExacTax automatically prints the tax year-end date on the tax year ending line on Form 1041. If the client has a short tax year for the current tax period, enter the beginning date for the tax period. If this field is blank, ExacTax assumes that the tax period is a full 12 months.

Tax year: Ending, if other than 12/31

ExacTax/1041 automatically enters 12/31/xx in this field. For fiscal returns, enter the year end date.

Note: Only one Form 1041 may be electronically filed per tax year.

Prior year-ends, if different:

Use these fields only if ExacTax is calculating depreciation and the client has ever had or currently has a short tax year.

Example

A client with a current fiscal year end of 6/30/17 has prior fiscal year ends of 6/30/16, 3/31/16, 3/31/15, 6/30/14, and 9/30/13. You would enter the following:

Oldest Interim Most recent

9/30/13 6/30/14 3/31/16

Notes

If this is the client's first year and the year was shorter than 12 months, enter the ending date of the month preceding the month in which the short year began in the Most recent field. For example, if the client's year began on 5/15/16 and ended on 12/31/16, enter 4/30/16.

If you change the information in these fields after depreciation was calculated in the current year, you must recalculate depreciation; to do so, return to the Asset tab and choose Tasks > Calculate all assets.

ExacTax does not allow you access to any other form until you enter these dates correctly.


31

Invoices

Election Statements

Letter

1041 Client Contact InformationContact

6FCONLTR 02 01/12/17 FIDUCIARY

Fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Letter Filing Instructions

[24]Dollar discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[25]Percent discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Election Number

Depreciation - Straight-Line15 = 3 Yr 16 = 5 Yr 17 = 7 Yr18 = 10 Yr 19 = 15 Yr 20 = 20 Yr21 = 39 Yr 22 = All

[2]E-mail address (40) . . . .

Mobile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Phone number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[11]Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prior year gross invoice amount (Before prior payments received, discounts, or sales tax) . . . . . . . . . . . . . . . . . . . . . . . . .Invoice amount (Force) (Before additional invoice items, prior payments received, discounts, or sales tax) . . . . . . . . . . . .

Description (50)#[§ 22] Additional invoice items

Amount [22]

Description (50)#[§ 23] Prior payments received

Date Amount [23]

Apply a discount of dollars OR percent to invoice:

Phone numbers:[3]Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other: (20) . . . . . . . . . .

Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[12]Salutation (42) . . .[Dear]

1 = Amortize Bond Premium2 = Carrying Charges – Construction3 = Carrying Charges – Real Estate4 = Carrying Charges – Personal Property23 = Farm CCC Loans24 = Mutual Funds Average Basis Double25 = Mutual Funds Average Basis Single26 = Deduct Start-up Expense post 10/2227 = Recurring Items28 = Savings Bond Income29 = Start-up expenses amortized

[28]Client invoice number (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[16]Suppress heading on beneficiary transmittal letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 2

ExacTax, Inc. 2

[11]

[15]Beneficiary transmittal letter/slipsheet from fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For proformaed amounts only

[29]Suppress client invoice printing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[13]IRS Service Center (26)

30 = Throwback of Disaster loss31 = Form 4972 Include NUA32 = De Minimis Harbor33 = Safe Harbor Elect. Sm Bus34 = Capitalize Repairs & Maint.52 = Waive Right to Claim Expenses53 = Deduction for Estate Expenses54 = Charitable Contributions Paid55 = Distributions Within 65 Days56 = Distributions in Property57 = QSF Granter Trust58 = NOL Carryback for Farming loss59 = NOL Carryback

Election out of 50% Go Zone Bonus Depreciation71 = All 72 = 3 Yr 73 = 5 Yr74 = 7 Yr 75 = 10 Yr 76 = 15 Yr77 = 20 Yr 78 = 25 Yr 79 = 27.5 Yr80 = 39 Yr 81 = IRC 16782 = NOL 3yr Small Bus Loss C/B83 = NOL 4yr Small Bus Loss C/B84 = NOL 5yr Small Bus Loss C/B

Depreciation - 150% DB5 = 3 Yr 6 = 5 Yr 7 = 7 Yr8 = 10 Yr 9 = 15 Yr 10 = 20 Yr11 = 39 Yr 12 = All 13 = DB to SL14 = Exclude from MACRS

[4][5][6][7][8]

[9]

[21]

(xxx.xx)

[1]

[13]

[3]

[15]

[5]

[17]

[7]

[19]

[9]

[30]Client number (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Elect

Preferred method of contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax return delivery method used (1 = Paper, 2 = Email PDF, 3 = PDF to file, 4 = Web) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[12][13]

Election to deduct the cost of improvements made to eligible building property (Regulation 1.263 (a)-3(h)) . . . .[§ 21]

[19]Include prior year tax preparation fee from invoice in expense (After discounts and before sales tax). . . . . . . . . . .

[10]

Fiduciary's social security number (For eSignature use). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]


32

Form [2] - Contact Information

Overview

Use this form to enter or update contact information not entered in other input forms.

Contact information

Enter telephone numbers and other information relevant to the client.

Salutation

Enter the client’s name as the name should appear in the salutation of the transmittal letter. Do not enter "Dear" (ExacTax already provides this salutation). The fiduciary’s name from Form 1041 automatically transfers to this field if a salutation has not proforma’d from the prior year.

IRS Service Center

ExacTax automatically determines the appropriate IRS Service Center where the return should be mailed based on the state postal code entered on Form 1041. This field is not applicable to Forms 1040NR, 1041-A, or 5227. To override the service center, select a location from the drop-down list for this field. If you do not enter a postal code or a service center, ExacTax prints the IRS Service Center address for foreign returns in the filing instructions.

Mailing address for filing instructions

The code entered in this field determines which address ExacTax prints on filing instructions and slipsheets. ExacTax defaults to printing both the U.S. mail and private delivery addresses in the filing instructions and the standard mailing address on the slipsheet.

Beneficiary transmittal letter and slipsheet from fiduciary

ExacTax prepares a transmittal letter and mailing slipsheet for all beneficiaries. Enter X to use fiduciary information instead of firm information for the return address and closing. To set this option on a beneficiary-by-beneficiary basis, leave this field blank and mark the Letter / slipsheet from fiduciary field in View > Beneficiary Information for the beneficiaries who are to receive a letter from the fiduciary.

Suppress heading on beneficiary transmittal letter

ExacTax prepares a transmittal letter for all beneficiaries. Enter X to suppress the fiduciary or firm information at the top of the transmittal letter to use your firm letterhead.

Invoices

Invoice number

Enter the number of the invoice you want to use or use the fieldview to make your selection. If you make an entry in this field, ExacTax prints the invoice you indicated rather than printing the default ExacTax/1041 invoice.

Prior year gross invoice before payments received, discounts, or sales tax

ExacTax displays the prior-year invoice amount for your reference. This amount is not used in the current year.

Total invoice, before prior payments, discounts, or sales tax (Force)


33

To force an amount different than the one ExacTax calculates, enter the desired amount in this field.

Additional invoice items

Use the field to add additional user-defined invoice items and amounts.

Prior payments received

Enter any prepayments made or any amounts being credited to the invoice amount due.

Apply a discount of dollars OR percent to invoice

Enter a dollar or percentage discount amount for the invoice, if applicable. ExacTax automatically clears your entry from one of these fields when you make an entry in the other.

Client invoice number

If you want an invoice number to print at the top of the invoice for this client, enter the number in this field.

Miscellaneous Variables and Mailing Slipsheet

Enter information in this section to use in segments of transmittal letters, filing instructions, and invoices. Also, use this section to change the name and mailing address on the slipsheets.

Miscellaneous text / amount variables

Form Letter contains four Miscellaneous fields: two for defining miscellaneous text variables and two for defining miscellaneous amount variables. Use these variables in segments of transmittal letters, filing instructions, and invoices when ExacTax does not provide the desired variable.

Name options for client mailing label and slipsheet

The code you enter determines which names and addresses ExacTax/1041 uses to prepare the client mailing label and slipsheet.

Code Result

1 Print with the fiduciary name and address. This is the default option.

2 Print with the trust name and address.

3 Print with the fiduciary name on the first line and the trust name on the second line followed by the address.

4 Print with the trust name on the first line and the fiduciary name on the second line followed by the address.

5 Print with the fiduciary name on the first line and the fiduciary title on the second line followed by the address.

Attention

Use this field to enter a name or other text on the second line of the client mailing label and slipsheet when using option 1 or 2 in the Name options for client mailing label and slipsheet field.

Slipsheet (Force)

ExacTax automatically generates the client name and address on the slipsheets as they are entered in the client’s Form 1041. To change (force) the client’s name and address information on the slipsheets, enter the necessary information in the


34

corresponding fields. These fields are only used on the slipsheets; they do not affect any other areas, including client documents.

Election Statements

Elections: Number

Enter the number that corresponds to the election statement required for this client or use the fieldview to make your selection. ExacTax prints up to 10 election statements with the client’s return. The following elections are available in ExacTax/1041.

1: Amortize bond premium under section 171(c)

2-4: Capitalize carrying charges under section 266

5-12: Depreciate using 150% declining balance method under section 168(b)(2)(D)

13: Change from declining balance method to straight-line method under section 167(e)1(b)

14: Depreciate using units of production method under section 168(f)(1)

15-22: Depreciate using straight-line method under section 168(b)(3)(D)

23: Include CCC loan in income under section 77(a)

24-25: Determine basis of mutual fund under Reg. 1.1012-1(e)

26: Deduct start-up expenses under section 195

27: Adopt the recurring items exception under Reg. 1.461-5(d)

28: Recognize current income on noninterest-bearing discount bonds under Reg. 1.454-1(a)(1)

29: Deduct start-up expenses under section 195

30: Throwback of disaster loss under section 165(i)

31: Statement to Include Net Unrealized Appreciation

32: De Minimis Safe Harbor

33: Safe harbor election for small taxpayers

34: Capitalize repair and maintenance costs

52: Waive the right to claim expenses on Form 706 under section 642(g)(1)

53: Statement regarding deduction for estate administration expenses under Reg. 1.642(g)(1)

54: Treat charitable contributions paid in next year as paid in current year under section 642(c)(1)

55: Treat trust or estate distributions as made in preceding tax year under section 663(b)

56: Disclosure statement for recognizing gain on property distributions to beneficiaries under section 643(e)(3)

57: Treat qualified settlement fund as grantor trust under Reg. 1.468B-1(k)

58: NOL carryback for farming losses under section 172(i)(3)


35

59: Relinquish NOL carryback under section 172(b)(3)

71-81: Out of bonus depreciation

82-84: NOL Small Business Loss increased carryback under section 172(b)(1)(H)


36



37

Form [3] - Allocation Options

Overview

Use this form to indicate allocation information that applies to all beneficiaries and to modify net income amounts.

Allocation Options

Use this section to enter allocation information that applies to all beneficiaries.

First tier beneficiaries: Allocate all items, except capital gains, equally

Enter X to allocate all non-capital income and expenses equally among all first-tier beneficiaries. An entry in this field eliminates the need to enter allocations specifically for beneficiaries in View > Beneficiary Information and takes precedence over any allocations indicated in View > Beneficiary Information, except capital gains or losses, accumulation distributions, depreciation, and depletion.

Notes

This field is applicable to first-tier beneficiaries only; the field does not affect discretionary allocations to second-tier beneficiaries.

To exclude a beneficiary from equal allocation, enter X in the Exclude from equal allocation field in the View > Beneficiary Information > Beneficiary tab.

This field is not applicable to charitable remainder annuity trusts. To allocate income equally among beneficiaries for this type of trust, do not enter allocation information in View > Beneficiary Information; enter an amount in the Total annual annuity amounts for all recipients (For equal allocation) field on Form SIT in the Split-Interest folder.

First tier beneficiaries: Allocate capital gains equally

Enter X to allocate capital gains equally among all first-tier beneficiaries. An entry in this field eliminates the need to enter capital gain allocations for specific beneficiaries in View > Beneficiary Information and takes precedence over any capital gain allocations indicated in View > Beneficiary Information.

Notes

This field is applicable to first-tier beneficiaries only; the field does not affect discretionary allocations to second-tier beneficiaries.

To exclude a beneficiary from equal allocation, enter X in the Exclude from equal allocation field in the View > Beneficiary Information > Beneficiary tab.

This field is not applicable to grantor trusts or agency relationships.

Entire amount to be distributed is discretionary

Enter X if the entire amount to be distributed from the estate or complex trust is discretionary. If you mark this field, distributions appear on Form 1041, Page 2, Schedule B, line 10, rather than on Form 1041, Page 2, Schedule B, line 9.

Note: Do not use this field when also using the Income required to be distributed (Force) field in this section.


38

Print 28% gain with long-term loss

If a return has a total capital loss, but a 28-percent gain, and capital losses are being allocated to beneficiaries, ExacTax presents the capital loss on the Schedule K-1 for each beneficiary, but not the 28-percent gain. Enter X for the Schedule K-1 to show both the gain and loss.

Section 3406 backup withholding allocated to beneficiaries

If backup withholding is entered in the field for the Interest income, Dividends, or Other income field on Form Income; in the field for the Other withholding field on Form PayExt; in the Federal tax withheld field on Form 1099R; in the Fed W/H field on Form W2 or W2G; or in the Federal income tax withheld field on Form K1-3, enter the amount to allocate to beneficiaries. Also, enter the percentage for each beneficiary in the Withheld income taxes field in the View > Beneficiary Information > Federal tab > Other Allocations section, or enter X in the First tier beneficiaries: Allocate all items, except capital gains, equally field on this form.

Allocate capital losses to beneficiaries on non-final return

Enter X to allocate capital losses in excess of capital gains to beneficiaries on non-final returns. Then, choose the View > Beneficiary Information > Federal tab and indicate the amount / percent of capital gains / losses to distribute to the respective beneficiaries, or enter X in the First tier beneficiaries: Allocate capital gains equally field on this form.

Notes

If this field is blank, ExacTax limits the amount of capital losses allocable to beneficiaries to the amount of capital gains.

Per the Schedule K-1 instructions, negative amounts cannot print for any class of income shown in boxes 1 through 8. Therefore, if overall capital losses are allocated to beneficiaries, the amounts print as positive amounts in box 11 of Schedule K-1 (capital loss carryovers).

If losses are allocated to beneficiaries on a non-final return, the return is not eligible for electronic filing. The return must be filed on paper.

Allocate no income or excess deductions to beneficiaries on final return

Enter X to print “No Taxable Income” on Schedule K-1 for all non-suppressed beneficiaries and not distribute income or excess deductions to beneficiaries on a final return. If the field is not marked, excess deductions will be distributed based on the income distributions percent entered in the View > Beneficiary Information > Federal tab or equally if there is no allocation. Net income will be distributed based on allocations entered on this form, in the View > Beneficiary Information > Federal tab, or equally by default.

Final return or simple trust: Allocate credits, estate taxes, …

ExacTax automatically allocates 100 percent of the credits, estate taxes, and state withholding on a simple trust or final return to the beneficiaries. To allocate a portion of these items to the trust, enter X in this field, then enter percentages in the applicable fields in the View > Beneficiary Information > Federal tab > Other Allocations section. This field applies to current-year foreign tax credit and general business credits (not credit carryovers), taxes withheld, and estate tax deduction.

Suppress: Investment income on Schedule K-1 (Form 4952)

ExacTax prints the investment income allocated to the beneficiary on Schedule K-1, box 14, code E and includes detail information in the beneficiary package. Enter X to suppress this information from printing with the return.

Suppress: Printing beneficiary numbers


39

ExacTax/1041 automatically prints a beneficiary number on the top of each Schedule K-1 and Grantor / Agency Report. Enter X to suppress the printing of the number on Schedule K-1 or the Grantor / Agency Report.

Subject to throwback rules

ExacTax does not automatically produce Schedule J. Enter X to indicate that the return is subject to throwback rules and that ExacTax should calculate Schedule J. Note that you must also enter data on Form J to produce Schedule J.

Pooled income funds: Allocate based on ownership share

Enter a code to allocate ordinary income or capital gains based on a percentage of ownership instead of amount / percent entries in View > Beneficiary Information. Then, choose View > Beneficiary Information, and enter a percent in the Ownership share field for each beneficiary. One-hundred percent of the income for the option selected is distributed based on the ownership share entered for one beneficiary divided by the sum of the ownership share entered for all beneficiaries.

Notes:

ExacTax/1041 prepares a statement for Form 1041, Page 1, line 18 for the detail calculation of the distribution deduction. Use the field for the Computation of income distribution deduction field on this form to use your own detail calculation.

Allocating income equally by entering X in either of the first two fields on this form has precedence over the option to allocate using ownership share.

If allocating only ordinary income using ownership share (code 1), capital gains will remain at the fund level unless allocated to beneficiaries on this form (equally) or in View > Beneficiary Information.

If allocating only ordinary income using ownership share (code 1) on a final return and there is no allocation entered for capital gains, then as a default, capital gains will be allocated using ownership share.

Pooled income funds: Computation of income distribution deduction

For a pooled income fund, ExacTax/1041 calculates an income distribution amount but does not complete Form 1041, Page 2, Schedule B.

If you allocate based on ownership share, ExacTax/1041 prepares a statement that shows the calculation of the distribution deduction for Form 1041, Page 1, line 18. Use the field for this field to suppress this statement and to enter your own calculation.

If you do not allocate based on ownership share, enter the detail required for Form 1041, Page 1, line 18.

Produce beneficiary / grantor worksheets

Enter a code to have ExacTax generate the Beneficiary Summary Worksheets or the Grantor Summary Worksheet for a grantor trust. For a grantor trust, there is only one worksheet, which contains both percentage and amount information.

Notes

If you enter X in the First tier beneficiaries: Allocate all items, except capital gains, equally field on this form, ExacTax does not produce the Beneficiary Percentage Worksheet regardless of the code you enter in this field.


40

Allocation of Indirect Expenses

Use this section to enter information regarding the allocation of indirect expenses to calculate amounts for the Allocation of Expenses by Income Type Worksheets.

Net capital gains for tax-exempt income allocation (Force)

By default, ExacTax includes capital gains to the extent the gains are included in distributable net income in the allocation of indirect expenses to tax-exempt income. Use this field to override the calculated amount.

Use net rather than gross method for allocating expenses

Enter X for ExacTax to use the net method for allocating indirect expenses. If this field is blank, ExacTax defaults to the gross method for allocating indirect expenses.

Allocate indirect tax expense to all income types

By default, ExacTax does not allocate tax expense to tax-exempt income. Enter X for ExacTax to include tax-exempt income in the allocation of indirect tax expenses.

Exclude Indirect Expense

By default, ExacTax allocates indirect expenses against all income types except capital gains. Enter or delete X in the appropriate fields to allocate or exclude income types from the allocation of indirect expenses.

Notes

These fields have no affect on the allocation of expenses to tax-exempt income.

If all of the income types are excluded from the allocation of indirect expenses and there are indirect expenses in the return, those expenses are allocated to interest income. If there is no interest income in the return, the expenses are reclassified to an existing income type.

If you leave the capital gain fields blank, ExacTax allocates indirect expenses to capital gains only to the extent that the gains are included in distributable net income (DNI). By default, only gains allocated to beneficiaries are included in DNI. To change the amount of capital gains used in the allocation of indirect expenses, use the following fields on Form Dist.

100% of capital gains includible in DNI per trust document

Short-term capital gain includible in DNI if not 100% (Force)

Section 1231 gain includible in DNI if not 100% (Force)

Other long-term capital gain includible in DNI if not 100% (Force)

For information about allocating expenses to capital gains, see Allocating expenses to capital gains.

Net Income by Type

Use these fields to enter income items to override the calculated amounts on the Allocation of Expenses by Income Type Worksheets. Net amounts from these worksheets are the amounts available for distribution to the beneficiaries.


41



42

Form [4] - Electronic Filing

Overview

Use this form only if you intend to electronically file this return. Also, use this form to prepare Forms 1041, 1041-ES, 8453-FE, 8879-F, and 8948.

General Information

Use this section to provide information for an electronically filed return.

File this return electronically

Enter X if you intend to electronically file this return. If you do not mark this field, ExacTax does not prepare an electronic file for the return.

Preparer notes

Enter any additional information you want to include as explanations for other data entered within the electronic filing record.

Notes

Text entered in the General footnote field on Form 1041 is automatically included in the electronic file and should not be duplicated in this field.

Do not enter election explanations in this section. ExacTax automatically enters any election explanations in the electronic file based on your data entry throughout the application.

Regulatory explanation

Enter any explanation required by IRS regulations.


Suppress the creation of: State electronic file…

Enter X in this field to suppress the creation of electronic files for all states attached to this return.

Suppress the creation of: Federal electronic file…

Enter X to suppress the creation of the federal electronic file when electronically filing a state return.

Email notification when electronically filed return is accepted by taxing agency

Mark this field if you would like an email notification sent to the email address indicated on Form Contact when the electronic files are accepted by the taxing agencies.

Form 8879-F has already been signed and returned

Enter X in this field if Form 8879-F has already been signed by the fiduciary or an authorized officer of the return. ExacTax uses this information to determine what information appears in the filing instructions. ExacTax automatically transfers the selection entered in this field to the Signature Document field in the Utilities > Electronic Filing Status dialog when you create the electronic file.


43

Note: By default, Form 8879-F prints with the tax return regardless of this field. ExacTax enters an X in the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options.

Electronic funds withdrawel for balance due returns: Suppress electronic funds withdrawal

Enter X in this field for balance due returns with primary bank account information entered on Form Bank to suppress paying the balance due by electronic funds withdrawal.

Electronic funds withdrawel for balance due returns: Requested payment date

This is a required entry to generate the electronic funds withdrawal (direct debit) payment in the Form 1041 electronic file. If this field is blank, ExacTax does not generate an e-file payment form.

Electronic filers with a balance due can authorize a direct transfer of the total balance due from their checking or savings account. This feature allows electronic filers the option of filing early and setting a date no later than the 15th day of the fourth month after the year end for automatic payment of the balance due. This payment form is an electronic document only; a paper form is not generated. For ExacTax to calculate the e-file electronic funds withdrawal (direct debit) payment, there must be an entry in this field.

Notes

You must enter the requested payment date.

You must enter bank account information on Form Bank.

Name control

ExacTax automatically generates the name control for the electronic file based on information entered in the Family name for electronic filing name control field on Form 1041 per Publication 5078 and displays the text on this form. To override this value, enter the new value in the Force field. The IRS determines the name control differently depending on how the Employer Identification Number (EIN) of the estate or trust was obtained; therefore, you should review name control text for correctness based on the following criteria.

If the EIN was requested using the internet, the name control should be derived from the first four characters of the name of the estate or trust.

If the EIN was requested using Form SS-4, the name control should be derived as follows:

For estates, the name control should be derived from the first four characters of the last name of the decedent.

For trusts when an individual is listed, the name control should be derived from the first four characters of the last name of the individual.

For trusts when a corporation, association, or endowment is part of the trust name, the name control should be derived from the first four characters of the name of the corporation, association, or endowment.

For numbered trusts and GNMA Pools, the name control should be derived from the first four digits of the trust number. If the name control text is not correct, enter the correct name control in the force field.

Note: When an EIN is obtained, the IRS issues Notice CP 575 B. The name control is displayed after the date of application on the IRS Use Only line at the top of the second page of the notice.


44

Personal Identification Number (PIN)

Use this section to complete Form 8879-F for electronically filed returns.

Personal identification number (PIN) authorization indicator

Enter 1 if the taxpayer is going to enter the PIN or 2 if the taxpayer authorized the electronic return originator to enter the taxpayer PIN. Enter the code directly or select it from the fieldview. If this field is blank, and a PIN number is entered in the Taxpayer PIN field, ExacTax defaults the PIN authorization to taxpayer entered PIN.

Taxpayer PIN

Enter the taxpayer’s self-selected Personal Identification Number (PIN). Enter any five digits except 00000.

Notes

The taxpayer must personally enter the PIN if you are using the Practitioner PIN option. If the Electronic Return Originator (ERO) receives permission to enter the PIN for the taxpayer, the taxpayer must sign Form 8879-F, IRS e-file Signature Authorization, which the ERO retains.

The PIN does not proforma from year to year because the PIN is the equivalent of an electronic "signature." This is in accordance with the IRS procedural steps that participating PIN program practitioners must follow.

The Taxpayer PIN, Signature date, and Electronic return originator PIN fields are required entries when using the PIN method to electronically sign the return. You should review the diagnostic messages before you create the electronic file.

Signature date

Enter the date the return is electronically signed by the fiduciary. This is a required entry when using e-file signature authentication and the IRS rejects any returns missing this information.

Note: The Taxpayer PIN, Signature date, and Electronic return originator PIN fields are required entries when using the PIN method to electronically sign the return. You should review the diagnostic messages before you create the electronic file.

Electronic return originator (ERO) PIN

Enter the Preparer Personal Identification Number (PIN), which is a self-selected set of five numbers. Enter any five digits except for 00000. The actual ERO PIN is an 11-digit number. ExacTax uses the six-digit IRS assigned EFIN and the five-digit self-selected PIN to determine the ERO PIN.

Notes

The PIN does not proforma from year to year because the PIN is the equivalent of an electronic "signature." This is in accordance with the IRS procedural steps that participating PIN program practitioners must follow.

The Taxpayer PIN, Signature date, and Electronic return originator PIN fields are required entries when using the PIN method to electronically sign the return. You should review the diagnostic messages before you create the electronic file.

Print Form 8879-F


45

Enter X to print the return with Form 8879-F, IRS e-file Signature Authorization, and the PIN information in the filing instructions prior to creating the electronic file. This field allows you to print Form 8879-F without completing the PIN information or the Signature date field.

Note: The Taxpayer PIN, Signature date, and Electronic return originator PIN fields are required entries when using the PIN method to electronically sign the return. You should review the diagnostic messages before you create the electronic file.

Form 8948 - Paper Filing Exceptions

Use this section to file Form 8948, Preparer explanation for not filing electronically.

Taxpayer chose to file the federal return on paper

Enter X if the taxpayer has chosen to file the return on paper.

IRS error reject code (ERC): Number of attempts to electronically file this return

Enter the number of attempts made to electronically file the return. You must make at least one attempt.

ExacTax error reject code (ERC): ERC number

ExacTax error reject code (ERC): Number of attempts to electronically file this return

Enter the number of attempts made to electronically file the return. You must make at least one attempt.

Other circumstance preventing this return from being electronically filed

Enter any explanation of a circumstance that prevents this return from being electronically filed.

Forms not supported for electronic filing by ExacTax

Enter the appropriate schedule or form number if this return contains one of the forms listed in the following table and in the fieldview.

Form Form Name

C-EZ Net Profit From Business

D Form 1065, Schedule D

K1 Form 1065B

970 Application to use LIFO Inventory Method

982 Reduction of Tax Due to Discharge

4626 AMT Corporations

5329 Additional Taxes on Qualified Plans

8283 NonCash Charitable Contributions

8820 Orphan Drug Credit

8825 RRE Inc & Exp Prtnr/Corp

8829 Expenses for Business Use of Home

8833 Treaty-Based Return Position Disclosure Sec 6114/7701

8834 Qualified Plug-in Electric and Electric Vehicle Credit


46

Form Form Name

8835 Renewable Electricity, Refined Coal, & Indian Coal Credit

8844 Empowerment Zone & Renewable Com Emp Credit

8845 Indian Employment Credit

8864 Bio-Diesel and Renewable Diesel Fuels Credit

8873 Extraterritorial Income Exclusion

8874 New Markets Credit

8881 Credit for Small Employer Pension Plan Startup Costs

8882 Credit for Employer-Provided Childcare Facilities and Services

8883 Asset Allocation Statement Under Section 338

8896 Low Sulfur Diesel Fuel Production Credit

8900 Qualified Railroad Track Maintenance Credit

8906 Distilled Spirits Credit

8908 Energy Efficient Home Credit

8910 Alternate Motor Vehicle Credit

8911 Alternate Fuel Vehicle Refueling Property Credit

8923 Mine Rescue Team Training Credit

8933 Carbon Dioxide Sequestration Credit

8936 Qualified Plug-In Electric Drive Motor Vehicle Credit


47

Pen Penalties

6FPENEXT 01 11/07/16 FIDUCIARY

Schedule AI - Annualized Income Installment Method

[3]Prior year tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [2]Prior year adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[1]Date return filed (Default is due date of the return) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[4]Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[5]Equal to penalty calculated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[10]Federal withholding as actually withheld . . . . .

Waiver requested:

Explanation (60) . . .

[7]

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

[11]2/3 of gross income from farming or fishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Farming, 2 = Fishing)[12]Force regular method calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suppress on Forms 1041 or 1041-QFT:

[58]

Taxable income for each period (Force)

[33][30]

[27]

Column (a) Column (b) Column (c) Column (d)

Qualified dividends . . . . . . . . . . . . . . . . . . . .

[21][18]

Net capital gain:[25]

[22][19]

[24]

[29]

[26][23]

2016 5

ExacTax, Inc. 5

Page #

[13]Underpayment of estimated tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[14]Late interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[15]Failure to file . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[16]Failure to pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[28]

28% rate capital gain . . . . . . . . . . . . . . . . . . .

[49][46]

[43]

Other taxes (Force) . . . . . . . . . . . . . . . . . . . .

[37][34]

[31]

Credits (Force) . . . . . . . . . . . . . . . . . . . . . . . .

[41]

[38][35]

[55]

[45][42]

[39]Long-term . . . . . . . . . . . . . . . . . . . . . . . . .

Form 4952,amounts:

Line 4g . . . . . . . . . . . . . . . . . . . . . . . . . . .Unrecaptured section 1250 gain . . . . . . . . . .

[53]

[17]

[50][47]

[20]

[32][36]

[§ 6]

[8] [9]

(mm/dd/yy)

[56][54]

[51]

[57]

[40]

[44][48][52]

ESBT . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term . . . . . . . . . . . . . . . . . . . . . . . . .

Line 4e . . . . . . . . . . . . . . . . . . . . . . . . . . .


48

Form [5] - Penalties

Overview

Use this form to enter data for the calculation of the underpayment penalty on Form 2210 or 2210-F.

Penalties, Exceptions, and Interest

ExacTax uses the information in this section to complete Forms 2210 and 2210-F and to calculate the penalty for failure to file, penalty for failure to pay, and late filing interest.

Because of the two-year exemption for a decedent's estate, ExacTax does not calculate any penalty for underpayment of estimated tax for an estate unless the Date created / decedent's date of death field on Form 1041 is more than two years

before the current tax year end.

Date filed, if other than due date of return

If the date you enter is after the return due date, ExacTax automatically calculates the penalty for failure to pay, the penalty for failure to file, and the interest on the underpayment. The penalty calculations begin on the 15th of the month even if it falls on a holiday or weekend.

Interest and penalty amounts, if applicable, print on the bottom of Form 1041, Page 1, Form 1041-QFT, or Form 1040NR, Page 2 with the following identifying codes.

Code Description

INT Interest due

FTF Failure to file

FTP Failure to pay

ExacTax also uses the filing date entered in the Date return filed field to calculate any underpayment penalties for Forms

2210 and 2210-F. If the field is blank, ExacTax defaults to the original due date of the return.

Prior year tax

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the prior year's tax. If this field is blank, ExacTax uses the current-year liability.

Prior year adjusted gross income

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the prior year's adjusted gross income.

Waiver requested: Amount

Enter the amount of the waiver requested. ExacTax automatically limits the amount to the calculated penalty.

Waiver requested: Equal to penalty calculated

Enter X to use the calculated penalty as the waiver amount.

Waiver requested: Explanation


49

Describe why the client is unable to meet the estimated tax requirements and the time period for which a waiver is being requested.


Federal withholding as actually withheld

To have federal withholding credited as actually withheld, enter the amount of federal income tax withheld from all sources for each period. These amounts transfer to Form 2210.

2/3 of gross income from farming or fishing

Enter 1 if two-thirds of the trust's gross income is from farming or 2 if two-thirds of the trust's gross income is from fishing. An entry in this field calculates Form 2210-F rather than Form 2210.

Regular method calculation (Force)

ExacTax uses the short method of calculating the penalty, if possible. Enter X to force ExacTax to use the regular method of calculating the penalty.

Suppress: Underpayment of estimated tax penalty

ExacTax prints Form 2210 or 2210-F and enters the amount on the applicable line on Form 1041, 1041-QFT, or 1040NR. Enter X to suppress the printing of Form 2210 or 2210-F and the calculation of the 2210 penalty on the return.

Note: ExacTax prints Form 2210 or 2210-F as the instructions state conditions for printing. If the Underpayment of estimated tax penalty field is marked, Form 2210 or 2210-F does not print. To suppress the penalty but print the form, enter X in the Underpayment of estimated tax penalty field, choose View > Form, then choose Edit > Overrides > Force Form To Print.

Suppress: Late interest

Enter X to suppress the late payment interest on the return and to print "Interest suppressed on return" on the worksheet. ExacTax prints the Interest and Penalty Worksheet if this field is left blank and late interest is due. The worksheet also prints if the Failure to file penalty or Failure to pay penalty fields are blank and a failure to file or failure to pay penalty exists.

Suppress: Failure to file penalty

Enter X to suppress the failure to file penalty on the return and to print "Penalty suppressed on return" on the worksheet. ExacTax prints the Interest and Penalty Worksheet if this field is left blank and a failure to file penalty is due. The worksheet also prints if the Late interest or Failure to pay penalty fields are blank and late interest or failure to pay penalty exists.

Suppress: Failure to pay penalty

Enter X to suppress the failure to pay penalty on the return and to print "Penalty suppressed on return" on the worksheet. ExacTax prints the Interest and Penalty Worksheet if this field is left blank and a failure to pay penalty is due. The worksheet also prints if the Failure to file or Late interest fields are blank and a failure to file or late interest penalty exists.

Schedule AI - Annualized Income Installment Method

ExacTax calculates Schedule AI if you enter information in this section. In addition, ExacTax automatically checks Form 2210, Page 1, box C when Schedule AI is produced.


50

Taxable income for each period (Force): Total / ESBT

Enter the taxable income for each period. If you leave these fields blank and enter other amounts in this section, ExacTax uses the proportional share of taxable income for each period.

Qualified dividends

Enter the amount of the qualified dividends for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Net capital gains: Short-term

Enter the amount of the net short-term capital gain for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Net capital gains: Long-term

Enter the amount of the net long-term capital gain for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

28% rate capital gain

Enter the amount of the 28-percent rate capital gain for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Form 4952 amounts: Line 4e

Enter the amount of the Form 4952, line 4e amount for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Form 4952 amounts: Line 4g

Enter the amount of the Form 4952, line 4g amount for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Unrecaptured section 1250 gain

Enter the amount of the unrecaptured section 1250 gain for ExacTax to use in the Form 2210, Schedule AI, line 12 tax calculation.

Other taxes (Force)

Enter the amount of other taxes for ExacTax to use in the Schedule AI, line 14 tax calculation. If you leave these fields blank and enter other amounts in this section, ExacTax uses the same amount of taxes that were reported on Form 2210, Part I, line 2 in each column.

Credits (Force)

Enter the amount of credits for ExacTax to use in the Schedule AI, line 16 credit calculation. If you leave these fields blank and enter other amounts in this section, ExacTax uses the same amount of credits that were reported on Form 2210, Part I, line 3 in each column.


51



52

Form [6] - Fiduciary Relationship

Overview

Use this form to enter information to complete Form 56.

General Information

Enter information to complete Form 56, Part I, Section A.

Nature of Liabilities and Tax Notices

Enter information to complete form 56, Part I, Section B.

Court and Administrative Proceedings

Enter information to complete Form 56, Part II.


53

EstimatesEst (2016)

Overpayment

Estimate Payment Voucher

Application of current year overpayment

Credits

Income distribution deductionTotal income

Amounts for code 6:

4th payment3rd payment2nd payment1st payment

Amounts for code 5 or 9:

Amount for code 2

Treat 4th quarter estimate as due 12/31Factor for rounding estimatesNumber of vouchers desired next year, if other than four

Withholding

Amount for code 5 or 8

Next year declaration

Estate tax deduction

Other taxes

EFTPS filing instructions

Print estimate filing instructions with blank amounts with code 4

1st payment2nd payment3rd payment4th payment

Amounts for next year's payments made:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

Est 7A

2016 FIDUCIARY1/23/2017 8:18:05 AM


54

Form [7A] - Estimates

Overview

Use this form to enter information to calculate estimates for the following year.

Overpayment

Use this section to enter overpayment application information.

Application of current year overpayment / Amount for code 5 or 8

The code you select determines how ExacTax applies any current-year overpayment. ExacTax uses this information to complete the applicable line on Form 1041, 1041-QFT, or 1040NR.

Code Result

1 Refund 100% of the overpayment. This is the default option.

2 Apply 100% of overpayment to next year's estimate and refund the excess. This option applies the overpayment to each successive estimate until the overpayment is exhausted or all estimated payments are made, in which case the excess is refunded.

3 Apply to first quarter estimate and refund the excess.

4 Apply equally to each quarter and refund the excess. This option applies the overpayment equally to each estimate and refunds any excess overpayment.

5 Apply the portion of the overpayment shown in the Amount for code 5 or 8 field to the estimates until the overpayment is exhausted or all payments are made and refund the excess.

6 Apply to first and second quarter estimates and refund the excess.

7 Apply 100% of overpayment to next year's estimate with no refund.

8 Apply amount specified below in the Amount for code 5 or 8 field. If this code is entered and the Next year declaration field is blank, estimates do not calculate.

Estimate Payment Voucher

To have ExacTax calculate estimated tax payments for a client, enter 2 through 7 in the Application of current year overpayment field or enter a code in the Next year declaration field.


The code you enter determines which method ExacTax uses to determine the amount of next year's estimated tax. Enter 2 through 7 in the Application of current year overpayment field to default to option 1 in the Next year declaration field. If both fields are blank, ExacTax does not generate estimates.

Code Result

1 Use the current-year income tax liability. This is the default if option 2 through 7 is entered in the Application of current year overpayment field.

Note: If the current-year tax is less than the minimum filing requirements, the vouchers do not print.

2 Use the current-year income tax liability plus the adjustment in the Amount for code 2 field. If this option is selected, also enter an adjustment to the current-year tax liability in the Amount for code 2 field. If the adjustment


55

Code Result

represents a decrease, enter a negative amount.

3 Use the current-year income tax liability even if the total liability falls below the minimum amount required to make estimated payments.

4 Print vouchers with amount fields blank. If you select this option, ExacTax/1041 prints estimate vouchers with the amount fields left blank. No estimate filing instructions are produced when choosing this option unless you enter X in the Print estimate filing instructions with blank amounts with code 4 field.

5 Use amounts entered below. If this code is selected, also enter amounts in the Amounts for code 5 or 9 fields.

Note: These amounts are adjusted by any overpayment applied.

6 Use the current-year amounts plus the adjustments in the Amounts for code 6 fields. If this code is selected, also enter adjustments to the current-year amounts in the Amounts for code 6 fields. If the adjustment represents a decrease, enter a negative amount.

8 Use next year's tax rates to calculate liability. Select this code to calculate next year's estimates when tax rates change from year to year. If this code is selected and the rates for the next year do not change, estimates are calculated as though code 1 was selected.

9 Use amounts entered below. If this code is selected, also enter amounts in the Amounts for code 5 or 9 fields.

Note: These amounts are not adjusted by any overpayment applied.

Notes

When ExacTax calculates the estimated tax worksheet, the long-term capital gains are taxed at 15 percent. If the gains should be taxed at a different rate, use the Amounts for code 6: Other taxes field on this form to adjust the tax amount.

Print estimate filing instructions with blank amounts with code 4

If code 4 is entered in the Next year declaration field, the estimate vouchers will print without amounts in the amount fields, but the estimate filing instructions will not print. Mark this field to print the estimate filing instructions as if estimates were calculated. The filing instructions will print with blank amount fields.

Note: This option applies to all returns attached to the client that permit use of code 4.

Amounts for code 5 or 9

Use these fields to specify the estimate amounts for each quarter.

If you enter code 5 in the Next year declaration field, enter the desired quarterly payments in these fields. These amounts adjust by the overpayment, if applicable and print on the vouchers.

If you enter code 9 in the Next year declaration field, enter the desired quarterly payments in these fields. ExacTax/1041 prints these amounts on the vouchers without adjustment.

Amounts for next year’s payments made

Use these fields to enter any estimated payments already made toward the next year.


56

If you enter code 1, 2, 3, 6, or 8 in the Next year declaration field, enter the amounts paid for each next year estimate. These amounts and the overpayment are subtracted from the calculated quarterly estimated tax liability to determine the voucher amounts.

Number of vouchers desired next year, if other than four

The code entered in this field determines how many estimates are desired and for which quarter ExacTax should use the estimates. ExacTax defaults the number of estimates to four.

Factor for rounding estimates

Enter a rounding multiple for the estimated payments. The estimated payments can be rounded up to the nearest $10, $100, or $1,000. For example, to round up each estimated payment to the nearest $10, enter 10. If this field is blank, ExacTax automatically rounds each estimated payment up to the nearest dollar.

Treat 4th quarter estimate as due 12/31

Enter X to use December 31 as the due date for the fourth quarter estimate on the Estimated Tax Payment worksheet and in the filing instructions that accompany the actual payment vouchers.

EFTPS Filing Instructions

Enter X in this field to generate filing instructions for EFTPS (Electronic Federal Tax Payment Service).


57

Payments and ExtensionsPayExt (2016)

Payments

General Extension Information

Extension for Forms 1041, 1041-QFT, 1040NR, or 3520-A

Extension for Forms 1041-A or 5227

3rd payment2nd payment1st payment

Specific payments, if unequal or not timely:

Treat calculated amounts as paidTotal estimates paidPaid with extension

Prior year overpayment applied

Calculated Amount Amount Paid Date Paid

Change in accounting period (Forms 7004 and 8868)

Foreign office only / Out of country (Forms 8868 and 4868)

Balance due on extension (Force)

Extended due date (For transmittal letters and filing instructions / penalty and interest calculations)

Extended due date (For transmittal letters and filing instructions)

Date 1041‐T filed, if other than 65 days after year endAmount to allocate, if not 100%

Allocate payments to beneficiaries:5th payment4th payment

FAX numberTelephone number

Books in care of, if different from fiduciary:

Other withholding

Short tax year ‐ Other explanation (Form 7004)

NameAddressCity, state, zip codeForeign country code / descriptionForeign province or countyForeign postal code

Estimate of total tax liability (Force)

Allocate 100%

1

2

3

4

5

6 7 8

9 10 11

12 13 14

15 16 17

18 19

20

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22

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25

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32 33 34

35 36

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Form [7B] - Payments and Extensions

Overview

Use this form to enter information regarding federal estimates paid during the year and to extend the due date of the return.

Payments

Use this section to enter the prior-year overpayment applied, estimated tax, and extension amounts. ExacTax uses this information on Form 1041, Page 1; Form 1041-QFT; Form 1040NR; and in the calculation of Forms 2210 and 2210-F.

Prior year overpayment applied

Enter any prior-year overpayment applied. If prior-year information is available, the information proformas automatically. ExacTax adds this amount to one of the following amounts and then transfers the total to the applicable payment line on Form 1041, 1041-QFT, or 1040NR.

amount in the Total estimates paid field

amounts in the 1st - 5th payment: Amount Paid fields

ExacTax also applies any amount in this field to the current-year first-quarter estimate for purposes of calculating Forms 2210 and 2210-F.

Paid with extension

Each time you print the extension (via the File > Print Extensions dialog), ExacTax does the following:

calculates the extension payment and prints the amount on the extension form,

enters the calculated amount in this field, and

prints this amount on the main return.

Alternatively, you can overrule the calculated amount by entering the amount actually paid with the current-year extension in this field. ExacTax then displays the new amount in black. This amount prints only on the main return.

Notes

To delete the overruled amount and restore the original calculated amount, right-click the field and choose Delete overrule.

To confirm the accuracy of the overruled amount, right-click the field and choose Acknowledge overruled data. ExacTax then disables the acknowledge functionality from the right-click menu. To restore the original amount later, you will need to manually enter the amount.

Total estimates paid / Specific payments, if unequal or not timely: 1st-5th payment

Enter the total current-year estimates in the Total estimates paid field if the estimates were paid in equal amounts and on time. ExacTax applies this amount equally to all estimated tax payments for purposes of calculating Forms 2210 and 2210-F. To override this default, enter actual amounts of estimated tax payments in the Amount Paid fields. Once you enter amounts in the particular payment fields, ExacTax ignores information in the Total estimates paid field.


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Enter the actual amount of each payment in the appropriate Amount Paid field, and enter the date if the payment was not on time. Do not include any prior-year overpayment applied amount in the 1st payment field.

Payments made between the 16th and 18th may be considered timely. If the Saturday-Sunday-holiday rule applies, and the payment was made within the grace period, do not enter the date paid.

Note: Five payment fields are provided to allow for situations in which more than one payment was made in a quarter. Enter payments in the order in which they were made. The first payment date defaults to the first-quarter due date, the second payment to the second-quarter due date, and so on. The fifth payment date defaults to the fourth-quarter due date. However, note that these are not quarterly payment fields. For example, record a payment in the first quarter in the 1st payment field. Then, if there were two payments made in the second quarter, they would be recorded in the 2nd payment and 3rd payment fields. The third-quarter and fourth-quarter payments would be entered in the 4th payment and 5th payment fields, respectively.

Treat calculated amounts as paid / Calculated: 1st-5th payment

If a return was completed using last years’ application and estimates were calculated for the current year, ExacTax proformas the amounts into the Calculated Amount fields. If data has not been entered for estimate payments and the calculated amounts were paid, enter X in the Treat calculated amounts as paid field to transfer the calculated amounts to the Amount Paid fields.

Allocate payments to beneficiaries: Allocate 100%

Enter X if the estate or trust made estimated tax payments and 100 percent of these payments is allocated to the beneficiaries.

Note: Only estimate payments made as of the fourth estimate payment date (January 15 for a calendar year) are considered for allocation to beneficiaries.

Allocate payments to beneficiaries: Amount to allocate, if not 100%

To allocate an amount to the beneficiaries other than the total amount of the estimates made, enter the amount to allocate in this field.

Notes

If you enter data in the Allocate 100% or Amount to allocate, if not 100% field, ExacTax calculates Form 1041-T. If both fields contain data, the Allocate 100% field takes precedence.

If percentages have not been entered in View > Beneficiary Information > Federal > Other Allocations to allocate the estimated tax payments, ExacTax allocates the amounts equally among all beneficiaries.

Date 1041-T filed, if other than 65 days after year end

Enter the date on which Form 1041-T was filed. This date prints on the beneficiary’s Schedule K-1. If you leave this field blank, and an entry has been made in the Allocate 100% or Amount to allocate, if not 100% field, ExacTax defaults to using a date that is 65 days after the trust’s year end.

General Extension Information

The following extension forms are applicable to fiduciary returns.

Form 4868 to extend Form 1040NR


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Form 7004 to extend Forms 1041, 1041-QFT, 3520-A

Form 8868 to extend Forms 1041-A and 5227

Change in accounting period

Enter X to indicate a short-year return due to a change in accounting period. If the extension is for a short-year initial or final return, ExacTax marks the appropriate checkbox based on entries on Form 1041.

Extension for Forms 1041, 1041-QFT, 1040NR, or 3520-A

Extended due date

The extended due date automatically displays in this field when you prepare an extension using the File > Print Extensions dialog. Otherwise, enter the date to use as the extended due date.

ExacTax uses this date in the calculation of late filing penalties and interest as well as the transmittal letter and filing instructions.

Estimate of total tax liability (Force)

If you enter an amount in this field, ExacTax/1041 calculates the total tax on the extension using the estimated payments and credits entered on other forms.


If you enter an amount in this field, ExacTax/1041 does the following:

completes the Extended due date field,

transfers this amount to the Paid with extension field, and

calculates the total tax on the extension using the estimated payments and withholding entered on other forms.

Short tax year - Other explanation

If the return for a short tax year is not due to initial / final return or a change in accounting period, use the field to enter an explanation for the other reason.

Extension for Forms 1041-A or 5227

Extended due date

The extended due date automatically displays in this field when you prepare an extension using the File > Print Extensions dialog. Otherwise, enter the date to use as the extended due date.

ExacTax also uses this date in the transmittal letter and filing instructions.


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State PaymentsStPmt (2016)

Section 1

Section 2

Date Paid

Calculated Amount Date Paid

Prior year:Allocate to income type code / descriptionCorpus (xxx.xxxx)

State postal code

Specific payments, if unequal or not timely:

Specific payments, if unequal or not timely:Amount PaidCalculated Amount

State postal code

Corpus (xxx.xxxx)Allocate to income type code / descriptionPrior year:

Tax due / paid with returnOverpayment appliedEstimates paid current year

Total estimates paidTreat calculated amounts as paid

1st payment2nd payment

Amount Paid

3rd payment4th payment5th payment

Allocate 100%Amount to allocate, if not 100%

Amount to allocate, if not 100%Allocate 100%

5th payment4th payment3rd payment2nd payment1st payment

Treat calculated amounts as paidTotal estimates paid

Estimates paid current yearOverpayment appliedTax due / paid with return

Type of return (View options dependent on postal code)

Type of return (View options dependent on postal code)

Allocate payments to beneficiaries:

Allocate payments to beneficiaries:

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2

3

4 5

6

7

8

9

10

11 12 13

14 15 16

17 18 19

20 21 22

23 24

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33

34

35

36

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40 41 42

43 44 45

46 47 48

49 50

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StPmt 8

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Form [8] - State Payments

Overview

Use this form to enter information regarding state estimates paid during the year. Sections are available for two state returns in this multiple unit input form.

Section 1

State postal code

If you are processing multiple states for this client, do not leave this field blank. The state postal codes are listed in the fieldview.

Type of return

Select the type of state return to which the estimated payments should be applied. The fieldview is dependent on the code entered in the State postal code field. If this field is blank, the application defaults to applying the estimated payments to the main state form. Refer to your state guides for additional information.

Note: If the selection is identified as a withholding return, amounts entered are not considered in the calculation of tax expense for Form 1041, 1041-QFT, 1040NR, or 5227.

Corpus

If some or all of the state tax payments are allocable to corpus rather than to income, enter the percentage that is allocable to corpus in XXX.XXXX format.

Allocate to income type code / description

Enter a code to allocate state taxes directly to a specific category of income.

If you leave this field blank, ExacTax/1041 allocates the tax expense indirectly to taxable income types, including capital gains to the extent they are included in distributable net income if the Do not allocate indirect expenses against: Short-term gains / Long-term gains fields are blank on Form Allocate.

Prior year: Tax due / paid with return

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of state income tax paid in the current year for the prior-year state return. ExacTax includes this information in the deductions on Form 1041, 1041-QFT, 1040NR, or 5227.

Prior year: Overpayment applied

If ExacTax/1041 was used in the prior year, the state overpayment amount proformas automatically. Otherwise, enter any prior-year overpayment that was applied. ExacTax adds this amount to one of the following amounts and if applicable, transfers this total to the appropriate line of the integrated state return.

amount in the Total estimates paid field

amounts in the 1st - 5th payment: Amount Paid fields


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ExacTax also applies any amount in this field to next year's first-quarter estimate for the purposes of calculating state penalty forms, if applicable.

Prior year: Estimates paid current year

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of prior-year state estimated tax payments actually paid in the current year. ExacTax includes this amount with taxes on Form 1041, 1041-QFT, 1040NR, or 5227.

Total estimates paid / Specific payments, if unequal or not timely: 1st-5th

Enter the total current-year estimates in the Total estimates paid field if the estimates were paid in equal amounts and on time. ExacTax applies this amount equally to all estimated tax payments for the purpose of calculating the state penalty form, if applicable, and includes 75 percent of the amount on the applicable tax deduction line on Form 1041, 1041-QFT, 1040NR, or 5227. To override this default, enter actual amounts of estimated tax payments in the Paid fields. If you enter amounts in the particular payment fields, ExacTax ignores information in the Total estimates paid field.

Enter the actual amount of each payment in the appropriate Paid field, and enter the date if the payment was not on time. Do not include any prior-year overpayment applied amount in the 1st payment field.

Payments made between the 16th and 18th may be considered timely. If the Saturday-Sunday-holiday rule applies, and the payment was made within the grace period, do not enter the date paid.

Enter state payments in federal Form StPmt so the amounts transfer to the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227. If you enter payments in more than one of the state payments sections provided in federal Form StPmt, be sure to use the same fields for each state. For example, if using the Total estimates paid field in one section for Arizona, use the Total estimates paid field when you enter state payments for California. Similarly, if using the 1st - 5th payment fields,

enter amounts in the payment fields for all sections.

Notes

ExacTax provides five payment fields to allow for situations in which more than one payment was made in a quarter. Enter payments in the order in which they were made. The first payment date defaults to the first-quarter due date, the second payment to the second-quarter due date, and so on. The fifth payment date defaults to the fourth-quarter due date.

However, note that these are not quarterly payment fields. For example, record a payment in the first quarter in the 1st payment field. Then, if there were two payments made in the second quarter, they would be recorded in the 2nd payment and 3rd payment fields. Enter the third-quarter and fourth-quarter payments in the 4th payment and 5th payment fields, respectively.

ExacTax transfers the total of state estimates made for the tax year to the main form in the applicable state product.

Treat calculated amounts as paid

If the return was completed using last year's application and estimates were calculated for the current year, ExacTax proformas the amounts into the Calculated Amount fields. If data has not been entered for estimate payments and the calculated amounts were paid, enter X in the Treat calculated amounts as paid field to transfer the calculated amounts to the Amount Paid fields.

Allocate payments to beneficiaries: Allocate 100%


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Enter X if the estate or trust made state estimated tax payments and 100 percent of these payments is allocated to the beneficiaries.

Note: Only estimate payments made as of the fourth estimate payment date are considered for allocation to beneficiaries.

Allocate payments to beneficiaries: Amount to allocate, if not 100%

To allocate an amount to the beneficiaries other than the total amount of the estimates made, enter the amount to be allocated in this field.

Notes

If you make an entry in the Allocate 100% or Amount to allocate, if not 100% field, ExacTax calculates the state estimate allocation form. If both fields contain data, the Allocate 100% field takes precedence.

If percentages have not been entered in the View > Beneficiary Information > Federal tab; Other Allocations group box to allocate the estimated tax payments, ExacTax allocates the amounts equally among all beneficiaries.


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Bank InformationBank (2016)

Account InformationAccount Information

Type of account (1 = Checking, 2 = Savings)Depositor account numberName of financial institutionRouting transit number

Non‐US financial institution (State use only)

Suppress direct deposit of refund (Direct deposit only applicable to Form 1040NR)

1

2

3

4

8

9

Bank 9

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Form [9] - Bank Information

Overview

Use this form to complete Forms 8453-FE, 8879-A, 1041, 1040NR, and 1041-ES.

Account Information

Use this section to enter financial institution information required to authorize direct deposit for Form 1040NR or electronic funds withdrawal for balance due on Form 1041, 1041-ES and Form 7004 that are electronically filed. This information is also used for electronic funds withdrawal and direct deposit at the state level when applicable.

Routing transit number

Enter the financial institution routing transit number. A custom fieldview is available.

Name of financial institution

Enter the name of the financial institution. A custom fieldview is available.

Type of account

Enter a code to designate the type of bank account from which you want to have the direct deposit or electronic funds withdrawn or use the fieldview.

For ExacTax to calculate the direct deposit or electronic funds withdrawal (direct debit) payment, there must be entries in these fields and in the Requested payment date field on Form ELF in the Electronic Filing Folder.

Suppress direct deposit of refund

Enter X to suppress the direct deposit of Form 1040NR refund when bank information is entered. When suppressed, ExacTax/1041 prints "XXXXXXX" on the Form 1040NR, Page 2 direct deposit information fields.


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Beneficiary, Grantor, Agency Data Entry

Amount

Income Allocations

Other Information

Other Allocations

Last (20)

Street Address (35) . . . . . . . . . . . . . .Name (Continued) (35) . . . . . . . . . . . .

Final K-1 or Grantor / Agency Report * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Beneficiary number . . . . . . . . . . . . .Taxpayer identification number . . . .

6FBDE 01 11/07/16 FIDUCIARY

City (20) . . . . . . . . . . . . . . . . . . . . . . .State . . . . . . . . . . . . . . . . . . . . . . . . . Zip . . . . . . . . . . . . . . . . . . . . . . . . . .

Foreign province . . . . . . . . . . . . . . . .State of residency, if different from above

Exclude from equal allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

S = S CorporationT = Trust

I = Individual (Default)P = Partnership

C = C CorporationE = Estate A = Charitable organization

O = Exempt L = LLC

Entity type . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional information [§]

Print beneficiary letter in Spanish* . . . . . . . . . . . . .

Schedule J distributions (Complex trusts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depreciation/Amortization (Not applicable to grantor trusts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion (Not applicable to grantor trusts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Credits/Estate tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Foreign tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Estimated taxes (Form 1041-T). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Withheld income taxes (An entry is required on Form AIlocate {3}, ZIP box 6.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annuity income . . . . . . . . . . . . . . . . . . . . . . . . . Percent of unitrust amount . . . . . . . . . . .

Alternative minimum tax adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income distributions . . . . . . . . . . . . . . . . . . .Amount

Short-term capital gains/losses . . . . . . . . . .Long-term capital gains/losses . . . . . . . . . . .

Amount fields are not applicable to grantor trustsor agency relationships

Name (First) (14) . . . . . . . . . . . . . . . .

Letter / slipsheet from fiduciary* . . . . . . . . . . . . . . .Salutation* (20) . . . . . . . . . . . . [Dear]

# Description (60)

Overflow # 2016 10A

ExacTax, Inc. 10A

(xxx.xxxx)

Foreign postal code . . . . .

(xxx.xxxx)

Entries in fields with an * cause this Schedule K-1 to print for this beneficiary regardless of whether there are amounts.

Suppress printing of this Schedule K-1 . . . . . . . . .

Oil/gas activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Postal code) . . .


Other . . . . . . . . . . . . . . . . . . . . . . . . . . .Ordinary business . . . . . . . . . . . . . . . . . .Rental real estate . . . . . . . . . . . . . . . . . .

US obligations . . . . . . . . . . . . . . . . . . . .

Beneficiary Special Allocation

Interest income (other than US obligations)

Dividend inc. (other than qual div & US obs)

Amount

Amount fields are not applicable to grantor trustsor agency relationships

(xxx.xxxx)

To allocate an income type different from income distributions, enter:

Other rental . . . . . . . . . . . . . . . . . . . . . . .

Tax-exempt . . . . . . . . . . . . . . . . . . . . . . .

Foreign code/country. . . . .

Partial grantor trust: Beneficiary with power . . . . . .

Form 1128

Amount (xxx.xxxx)DiscretionaryRequired

Tax year end: (if not calendar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Short period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1st preceding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2nd preceding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1231 gain . . . . . . . . . . . . . . . . .

Other Returns

Amount (xxx.xxxx) DiscretionaryRequired

Taxableamountsdistributed:

Charitable remainder trusts:(xxx.xxxx)

Pooled income fund: Ownership share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(xxx.xxxx)

Shareholder Allocation

Federal

Date of birth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yyyy) Telephone number

Qualified dividends . . . . . . . . . . . . . . . . .

(mm/dd/yy)

EMAIL address


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Form [10A] - Beneficiary Information Overview

Use this tab to enter general beneficiary information such as name, address, and filing instruction information. The application uses this information to complete both the federal and state returns.

Entity

Enter the beneficiary’s entity type directly in the field or select a type from the drop-down list. UltraTax CS uses “Individual” as the default. If the beneficiary is a corporation, this is a final return, and there are short-term and long-term capital losses, UltraTax CS enters the beneficiary’s share of both types of losses as a single item on the short-term capital loss carryover line on Schedule K-1 as instructed.

SSN / EIN

Enter the beneficiary’s Social Security Number or Employer Identification Number (EIN). If the beneficiary has applied for but not yet received a number, enter either a hyphen or the letter A as the first character in this field for UltraTax CS to print "Applied for." If the foreign beneficiary does not have an identification number, enter ForeignUS. A number entered without hyphens defaults to ###-##-#### format.

Note: When the Require a password to display SSN checkbox is marked in the Setup > Security tab, UltraTax CS displays the Social Security number as "###-##-####." For more information on masking Social Security Numbers, see Modify Password to Display SSNs dialog.

Name and Address

Enter the beneficiary's name and address information in these fields. Notes

If the beneficiary is not an individual, the First name and Last fields are changed to a single Name field.

In the City field, enter the name of the beneficiary’s city. If the beneficiary has a foreign address, enter the province name.

In the State field, enter the beneficiary’s state postal code or select an option from the drop-down list for the field. Use “. “ if beneficiary has a foreign address.

In the Zip code field, enter the five- or 10-digit ZIP code. If the beneficiary has a foreign address, enter the foreign postal code.

In the Foreign country code field, select a country code from the fieldview if the beneficiary is a foreign person or entity. UltraTax CS uses this information to complete Schedule K-1, Part II, box H. Massachusetts uses this information for electronic filing.

In the State of residency, if different from above field, enter the beneficiary’s state of residence at year end if the residence is different from the beneficiary’s address. Use this field if you are integrating with a state program. UltraTax CS uses information entered in the State of residency, if different from above field to determine resident versus nonresident status.

In the Date of birth field, enter the beneficiary’s complete date of birth in MM/DD/YYYY format. UltraTax CS uses this information to calculate amounts accumulated before age 21 in the Schedule J Allocation of Trust Accumulation Distribution Worksheet.

In the Telephone number field, enter the beneficiary’s telephone number. UltraTax CS uses this information for state purposes only when applicable.

Form 1128 box Tax year end: (if not calendar)

Enter the beneficiary’s tax year end if other than a calendar year end. If this field is blank, UltraTax CS uses a 12/31 default date as the beneficiary’s tax year end. UltraTax CS uses this information for decedent’s estate returns to complete Form 1128, Part III, Section G.

Taxable amounts distributed

Enter the taxable amounts distributed to the beneficiary for the periods indicated. UltraTax CS uses this information for decedent’s estate returns to complete Form 1128, Part III, Section G.

Other Information group box Suppress printing of this Schedule K-1


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If you entered beneficiary information from the will or trust agreement but do not want a Schedule K-1 prepared for the current-year return, mark this checkbox to suppress printing of the Schedule K-1 for this beneficiary. Notes

If the beneficiary does not receive an allocation and is not suppressed, UltraTax CS prints a Schedule K-1 for this beneficiary and prints “NO TAXABLE INCOME” above Part I.

This field is not available for charitable remainder trusts, qualified subchapter S trusts, grantor trusts, or agency relationship returns.

Partial grantor trust: Beneficiary with power

Mark this checkbox to indicate on the Grantor / Agency Report that this is the beneficiary who receives the income and related deductions. Once marked, enter information in the Partial Grantor dialog (Federal tab > Partial Grantor button) for this beneficiary Note: UltraTax CS completes a Grantor / Agency Report for only one beneficiary. Once the checkbox has been marked for a beneficiary, the checkbox is disabled for all other beneficiaries. To change to a different beneficiary, clear the checkbox for the initial beneficiary to enable the checkbox for another beneficiary.

Second tier / discretionary

Mark this checkbox to indicate that this is a second tier beneficiary. UltraTax CS allocates income to second-tier beneficiaries to the extent of the remaining distributable net income (DNI) after all first-tier allocations have been made. This field is not available for simple trusts, charitable remainder trusts, grantor trusts, or agency relationships. Tiered distributions are not used for depreciation, depletion, credit, or withholding allocations. Note: If all of the beneficiaries are second tier beneficiaries, and you enter X in the Entire amount to be distributed is discretionary field on Screen Allocate, you do not need to enter data in this field.

Final Schedule K-1 or Grantor Report

Mark this checkbox to indicate the Schedule K-1 or Grantor / Agency Report as final. If you enter data in this field, UltraTax CS also marks any state Schedules K-1, Schedule K-1 Equivalents, or Grantor / Agency Reports for this beneficiary as final. Note: If you indicate that the return is final in the Estate / Trust Information section on Screen 1041, UltraTax CS also marks every beneficiary's federal and state Schedule K-1 or the Grantor / Agency Report as final.

Additional information

Enter notes and additional information for this beneficiary to print on a Schedule K-1, box 14 statement. If you prepare a grantor trust or agency relationship return, the information prints on the Grantor / Agency Report. If there is additional information to print on each of these beneficiary’s Schedules K-1 or Grantor / Agency Reports, enter the information in the statement dialog for the General footnote – Schedule K-1 and Grantor / Agency Report field on Screen 1041.

Notes

To enter notes and additional information to print on the Grantor / Agency Report prepared for a qualified subchapter S trust, use the Qualified subchapter S trust: Additional information field on the Federal tab > Other Returns section instead of this field.

To enter notes and additional information to print on the Grantor / Agency Report prepared for a partial grantor trust, use the statement dialog for the Additional Information field on the Federal tab > Partial Grantor button instead of this field.

Transmittal Letter group box Salutation

Enter the beneficiary's name as the name should appear in the salutation of the transmittal letter that prints with Schedule K-1 or with the Grantor / Agency Report. Do not enter "Dear" (UltraTax CS provides this salutation). If you leave this field blank, UltraTax CS prints "Dear Beneficiary."

Letter / slipsheet from fiduciary

Mark this checkbox to generate a transmittal letter and slipsheet from the fiduciary to the beneficiary. If you leave this field blank, UltraTax CS prints the firm information in the return address for the beneficiary transmittal letter and slipsheet. To generate a transmittal letter from the fiduciary to all beneficiaries of this estate or trust, enter X in the Beneficiary transmittal letter / slipsheet from fiduciary field on Screen Letter.

Note: To set this option for all clients you subsequently add, choose Setup > 1041 Fiduciary, click the Federal tab, click the New Client Options button, and mark the Use fiduciary name rather than firm name for beneficiary transmittal letter / slipsheet checkbox.

Print beneficiary's letter in Spanish


70

If the beneficiary transmittal letter should print in Spanish, mark this checkbox. If you leave this field blank, UltraTax CS prints the beneficiary transmittal letter in English.

Beneficiary is a 1040 client

Mark this checkbox to indicate that the beneficiary is a 1040 client. This generates a paragraph regarding the firm retaining a copy of Schedule K-1 or the Grantor / Agency Report to prepare the individual tax return for this particular beneficiary. If you leave this field blank, UltraTax CS assumes the beneficiary is not a 1040 client.


71


Beneficiary number . . . . . . . . . . . . .

6FPTGR 01 11/07/16 FIDUCIARY

Name (35) . . . . . . . . . . . . . . . . . . . . .

Overflow # 2016 10B

ExacTax, Inc. 10A

Partial Grantor

Allocable to taxable:Income

Qualified dividends:Other dividends:

Short-term capital gain / loss:

Deductions

Allocable to tax-exempt:

Partial Grantor

Interest

Long-term capital gain / loss:Nonpassive partnership/S corporation:Passive partnership/S corporation:Other:

Tax-exempt:

Amount# Description (60)

Adjustments and preference items . . . . . .[§]

Alternative Minimum Tax

Amount# Description (60)

Other

Additional Information . . . . . . . . . . . . . . . .[§]


72

Form [10B] - Beneficiary Information for Partial Grantor Use this input form to complete the Grantor / Agency Report for partial grantor trusts, such as Crummey trusts and 5 x 5 trusts. Amounts in the fields transfer directly to the corresponding lines on the Grantor / Agency Report. Information on input screens, transfer to Form 1041, regardless of the information entered in this dialog.

This input is available only if the entity type on Form [1] (1041) is "Partial grantor trust" and the Partial grantor trust: Beneficiary with power checkbox on the Other Information section on the Beneficiary input is marked for the beneficiary.

Enter notes and additional information to print on the Grantor / Agency Report for the beneficiary. Information entered in the following statement dialogs prints on Schedule K-1 only for partial grantor trust returns.

General footnote: Schedule K-1 and Grantor / Agency Report input on Form [1] 1041. Additional information input oin the Other information section on the Beneficiary input.


73

WagesW2 (2016)

General Information

W2 Facsimile

State and City Information

Last

First

Employee's Name

Employee's SSN

Delete on next year's proforma

CorrectedStandard / Non‐standard W‐2 (S = Standard, N = Nonstandard)

Employer's nameEIN (Box b)

Name of localityCodeLocal W/HLocal wagesState W/HState wagesUseStateState

Other

sick payplanemployeeThird‐partyRetirementStatutory

Employee's address, and ZIP code

Nonqualified plans

Dependent care benefits

Allocated tipsSS tips

Employer's address, and ZIP code Medicare W/HMedicare wages

SS W/HSS wages2nd State ID number

Fed W/HWages, tipsState ID numberControl number

201918171615

14

13

e

1211

109

87

c 65

43

21d

Not applicable to Form 1041




Not applicable to Form 1041 Not applicable to Form 1041




Allocable to corpus (xxx.xxxx)



1

2

4

5

6

7

8 9

10

11

12 13

14

15 16

17

18 19

20

21

22

23

25

26 27 28 29 30 31 32 33

34 35 36 37 38 39 40 41

W2 20

2016 FIDUCIARY1/23/2017 8:18:05 AM


74

Form [20] - Wages

Overview

Use this form to enter information regarding wages reported on federal Form W-2.

General Information

Employer's name

ExacTax uses the employer's name entered in this field as the unit description in the drop-down list for this form.

Allocable to corpus

If all or part of the income from this activity is allocable to corpus rather than income, enter the percentage that is allocable to corpus in XXX.XXXX format.

W2 Facsimile

Wages, tips

Enter the amount of wages from Form W-2, box 1. This amount is included on Form 1041, Page 1, line 8, 1040NR, Page 1, line 21, or Form 5227, Page 1, line 7.

State and City Information

State

If you process a state return and the income for this activity is considered source income for that state, enter a state postal code for proper state processing. If you leave this field blank, none of the income and withholding for this activity will be considered source income for that state.


75

Gambling WinningsW2G (2016)

General Information

W-2G Facsimile

17

15

18

16 Local winnings

State winnings

Foreign country code/description, province, and postal code


State

Delete on next year's proformaState use

CorrectedStandard / Non‐standard W‐2G (S = Standard, N = Nonstandard)

Local W/H Name of localityCity Code

State W/H

Payer's state ID no.

Second IDFirst ID

WindowPayee's TIN

CashierIdentical wager winnings

Payee's name, address, and ZIP code

RaceTransaction

Telephone number

Date won

Type of wager Fed W/H

Gross winningsPayer's address, and ZIP code

1413

1211

109

87

65

43

21

Allocable to corpus (xxx.xxxx)

EINPayer's name

1

2

3

5

6

7

8

9

10

11 12

13

14 15

16

17

18

19 20

21

22 23

24

25 26

27

28

29 30

31 32

33 34

35 36

37 38

39 40

41 42

43 44

45 46 47

W2G 21

2016 FIDUCIARY1/23/2017 8:18:05 AM


76

Form [21] - Gambling Winnings

Overview

Use this form to enter information regarding gambling winnings reported on federal Form W-2G.

General Information

Payer's name

ExacTax uses the payer's name entered in this field as the unit description in the drop-down list for this form.

State

If you process a state return and the income for this activity is considered source income for that state, enter a state postal code for proper state processing. If you leave this field blank, none of the income and withholding for this activity will be considered source income for that state.

Allocable to corpus


W-2G Facsimile

Gross winnings

Enter the amount of winnings from Form W-2G, box 1. This amount is included on Form 1041, Page 1, line 8, 1040NR, Page 1, line 21, or Form 5227, Page 1, line 7.


77

Distributions1099R (2016)

Form 1099-R Facsimile

Form 4972 - Lump-Sum Distributions Tax

4

State postal codeAllocable to corpus (xxx.xxxx)

Income typeCity code


Gross distribution1 2a

12

14 15

Taxable amount

Federal tax withheld

State tax withheld

State taxable amt, if different Local tax withheld

Payer's address:

TINName

Non‐retirement income (State use only)

Capital gain (included in box 2a)

Net unrealized appreciation

Distribution code Other

Percent of total distribution

3

6

7 8

9a

Averaging method (1 = 10 year with capital gain, 2 = 10 year, 3 = 20% capital gain)Entire distribution from qualified pension, profit sharing, or stock plan (1 = Yes, 2 = No)

Part of the distribution rolled over (1 = Yes, 2 = No)Distribution paid to a death beneficiary (1 = Yes, 2 = No)Plan participant born before 1936 and participant for at least 5 years prior to the distribution (1 = Yes, 2 = No)

Form 4972 used by participant in a prior year (1 = Yes, 2 = No)Form 4972 used by beneficiary in a prior year (1 = Yes, 2 = No, Blank = N/A)Elect to include net unrealized appreciation in income

Federal estate tax attributable to lump‐sum distributionDeath benefit exclusion

%

%

Payer's state ID no.13

9b Total employee contributions

5 Employee contributions

Not Applicable to Form 1041


Foreign country code / name

Foreign province or county

Foreign postal code

Nonqualified annuity (Code D) (Form 8960)

Difference between gross distribution and taxable amount treated as nontaxable income per Screen Income option

1

2

3

4 5 6

7 8

9

10

11

12

13 14

15

16

17

18

19 20

21 22

23

24 25 26

27

28 29

30 31

33

34

35

36

37

38

39

40

41

42

1099R 23

2016 FIDUCIARY1/23/2017 8:18:05 AM


78

Form [23] - Distributions

Overview

Use this form to enter information regarding pension and other retirement income reported on federal Form 1099-R.


Name

The payer’s name entered in this field is used as the unit description in the folders block on the left side of the form. This is a required entry.

Note: There must be an entry in this field for ExacTax to recognize data on this form.

State postal code

If you process a state return and the income for this activity is other than the location entered in the payer's address, enter a state postal code for proper state processing. If you leave this field blank, none of the income for this activity will be considered source income for that state.

Allocable to corpus


Income type

Use the fieldview to select a type of pension or retirement plan to determine whether the income is taxable or should be a subtraction for ExacTax/1041 states.

Note: Annuities are considered investment income for Form 4952.

Non-retirement income

Enter X to indicate that the income is investment instead of retirement. This information does not appear on the federal 1041 return; the information is for state use only.

Nonqualified annuity (Code D)

Enter X in this field if Form 1099-R box 7 Distribution code contains code D.

Note: If Form 1099-R has another distribution code along with code D, enter the other distribution code in Form 1099-R box 7 Distribution code and enter X in this field

Gross distribution

Enter the gross distribution from Form 1099-R, box 1. This amount is used for the calculation of nontaxable income and is included in accounting income.

Taxable amount

Enter the taxable amount of the distribution from Form 1099-R, box 2a. This amount is included on Form 1041, Page 1, line 8, Form 1040NR, Page 1, Line 21, or Form 5227, Page 1, line 7. The difference between the Gross distribution and Taxable


79

amount fields is reported as nontaxable income on Form 5227, Page 1, line 15 and is considered part of tax-exempt income for Form 1041 calculations.

Note: To not consider the difference as nontaxable income, delete the entry in the Nontaxable income: Treat difference between Form 1099R gross distributions and taxable amount as nontaxable field on Form Income in the Income folder.

Capital gain

Enter the capital gain from Form 1099-R, box 3. This amount is only used for the calculation of Form 4972 and is not reported on Forms 1041, 1040NR, or 5227.


Enter the amount of net unrealized appreciation from Form 1099-R, box 6. If applicable, also enter election information in the Elect to include net unrealized appreciation in income field in the Form 4972 - Lump-Sum Distributions Tax section on this form for ExacTax to calculate the amount of net unrealized appreciation includible in taxable income. If there is an amount in the Capital gain field, the portion qualifying for capital gain treatment is also calculated.

Distribution code

Enter the code from Form 1099-R, box 7 that identifies the type of distribution received, or use the fieldview to make your selection. ExacTax/1041 uses only code A (for preparing Form 4972) and code D (for preparing Form 8960). The entry of any other code does not affect the calculation on the federal return, but may be used for state returns.

Other

Enter the current actuarial value attributable to the distribution received in the current year. This amount transfers to the applicable line on Form 4972, Part III. If the distribution is made to more than one person, enter the percentage of the annuity contract attributable to the recipient whose data you are currently entering in the field. ExacTax automatically calculates the lump-sum distribution tax for multiple recipients. If the distribution is not made to more than one person, leave this field blank.


Enter the percentage received by the taxpayer if this is a total distribution that is distributed to more than one person. ExacTax automatically calculates the lump-sum distribution tax for multiple recipients. If the distribution is not made to more than one person, leave this field blank.

Form 4972 - Lump-Sum Distributions Tax

Entire distribution from qualified pension, profit sharing, or stock plan

Enter 1 for Yes or 2 for No to indicate if this distribution was the plan participant’s entire balance from the qualified plan. If you enter No, you cannot use Form 4972.

Part of the distribution rolled over

Enter 1 for Yes or 2 for No to indicate if any part of this distribution was rolled over into another qualified plan. If you enter Yes, you cannot use Form 4972.

Distribution paid to a death beneficiary

Enter 1 for Yes or 2 for No to indicate if this distribution was paid to a beneficiary of a plan participant who died after reaching age 59½ or who was born before 1936.


80

Note: If you enter No in both the Distribution paid to a death beneficiary and Plan participant born before 1936 and participant for at least 5 years prior to the distribution fields, you cannot use Form 4972.

Plan participant born before 1936 and participant for at least 5 years prior to the distribution

Enter 1 for Yes or 2 for No to indicate if the plan participant who received this distribution was born before January 2, 1936, and was in the plan at least five years before the year of distribution.

Note: If you answered No in both the Distribution paid to a death beneficiary and Plan participant born before 1936 and participant for at least 5 years prior to the distribution fields, you cannot use Form 4972.

Form 4972 used by participant in a prior year

Enter 1 for Yes or 2 for No to indicate if Form 4972 was used after 1986 for a previous distribution. If you enter Yes, you cannot use Form 4972.

Form 4972 used by beneficiary in a prior year

Enter 1 for Yes, 2 for No, or leave this field blank if Form 4972 is not applicable, if this distribution is being paid to a beneficiary who used Form 4972 for a previous distribution from a plan participant after 1986. If you enter Yes, you cannot use Form 4972.

Elect to include net unrealized appreciation in income

Enter information to elect to include unrealized appreciation on employer securities, shown in 1099-R, box 6, in income. ExacTax automatically prints the election with the return.

Death benefit exclusion

If the client is the beneficiary of a deceased employee’s pension and has received a death benefit exclusion, enter the exclusion amount in this field. The lesser of the amount in this field or $5,000 is used in the calculation of the taxable pension distribution.

Federal estate tax attributable to lump-sum distribution

Enter the amount of federal estate tax paid on this lump-sum distribution. If completing Part II, ExacTax decreases the capital gain amount by the applicable estate tax.


81

Miscellaneous Income1099M (2016)

General Information

1099-MISC Facsimile


Report income on Schedule F as custom hire (Default is Schedule F Other income)

State

Form

Unit

Report income on Schedule C as gross receipts (Default is Schedule C Other income)

15a 15bAmountState

Taxable crop insurance proceeds received in current year (Box 10 amount)

Corrected 1099‐Misc


16 17 18State W/H State/Payer's state no. State income (ELF only)

Gross proceeds paid to an attorney1413

1211

Crop insurance proceeds109

7 8Nonemployee compensation Substitute payments in lieu of

Medical and health care paymentsFishing boat proceeds 65

1

2

3 4

Payer's address, and ZIP code

Royalties

Account number

Other income Federal income tax withheld

Allocable to corpus

dividends or interest

Rents

FINPayer's name

1

2

3

4

5

7

8

9

10

11

12

13

14 15 16

17 18

19

20

21

22

23 24

25 26

27 28

29

30 31

32 33 34 35

36 37 38 39

1099M 25

2016 FIDUCIARY1/23/2017 8:18:05 AM


82

Form [25] - Miscellaneous Income

Overview

Use this form to enter miscellaneous income information from Form 1099-MISC.

General Information

Payer's name

The payer’s name entered in this field is used as the unit description in the folders block on the left side of the form. This is a required entry.

Note: There must be an entry in this field for ExacTax to recognize data on this form.

State

If you process a state return and the income for this activity is considered source income for that state, enter a state postal code for proper state processing. If you leave this field blank, none of the income for this activity will be considered source income for that state.

Note: This field is only available for Form 1099M in the Income folder.

Report income on Schedule C as gross receipts (Default is Schedule C Other income)

Enter X in this field to have amounts entered on Form 1099M reported on the Gross receipts line of the Schedule C unit with which Form 1099M is associated, instead of the Other income line.

Note: This field is only available for Form 1099M in the Business folder.

Report income on Schedule F as custom hire (Default is Schedule F Other income)

Enter X in this field to have amounts entered on Form 1099M reported on the Custom hire line of the Schedule F unit with which Form 1099M is associated, instead of the Other income line.

Note: This field is only available for Form 1099M in the Farm folder.

Taxable crop insurance proceeds received in current year

Enter a different amount or zero to specify the portion of the crop insurance proceeds amount in Box 10 is taxable.

Note: This field is only available for Form 1099M in the Farm folder.

Allocable to corpus


1099-MISC Facsimile

Payer's address, and ZIP code

Enter the payer’s address as reported on Form 1099-MISC. This information is required for some state products.


83

Rents

Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the applicable form.

Form/Schedule Line

Form 1041 Line 8, Other income

Schedule C Line 6, Other income, unless the Report income on Schedule C as Gross receipts field is marked

Schedule E, Page 1 Line 3, Rents received

Schedule F Line 8, Other income, unless the Report income on Schedule F as Custom hire field is marked

Royalties


Form/Schedule Line



Schedule E, Page 1 Line 4, Royalties received


Other income / Fishing boat proceeds / Medical and health care payments / Nonemployee compensation / Substitute payments / Gross proceeds paid to an attorney


Form/Schedule Line





Crop Insurance Proceeds


84


Form/Schedule Line




Schedule F Line 6a, Crop insurance proceeds


85

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86

Form [26A] - Income and Capital Asset Sales

Overview

Use this form to enter information for income items. Also use this input form to complete Form 1116 for foreign-earned interest and dividend income.

Income

Interest income

Enter both U.S. and foreign source income. ExacTax uses U.S. federal and state interest income information from Forms 1099-INT and 1099-OID to complete the applicable interest income line on Form 1041, 1041-QFT, 1040NR, or 5227. Use the field to enter multiple payers and codes to properly classify the interest income. If you do not want the payers' names proforma'd and special percentages or codes are not needed for federal or state processing, enter the amount directly on the input form. The following information describes how entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter F in the F/S field if the item is applicable only to the federal return.

Type Code: Enter a code to identify interest income that is an adjustment to an interest amount (such as nominee or accrued interest).

If an item of interest income requires an adjustment, enter the total amount received on one line, and enter the adjustment amount on a separate line in the same column with type code 3, 4, 5, or 6. Enter the adjustment as a positive amount.

Corpus: Enter a percentage (XXX.XXXX) if an item is entirely or partially allocable to corpus rather than to income.

Payer: Enter the payer's name. A custom fieldview is available.

Interest Amount: Enter taxable interest income amounts and adjustments to interest amounts from Forms 1099-INT and 1099-OID to complete Form 1041, 1041-QFT, 1040NR, or 5227. Do not enter tax-exempt interest in this field.

Tax Exempt: Enter total tax-exempt interest amounts, including interest income attributable to private activity bonds issued after 8/7/86. Do not enter tax-exempt interest in the Interest Amount field.

Private Act Bond: Enter interest income attributable to private activity bonds issued after 8/7/86. Amounts entered in this field are used only for Schedule I calculations. You must also enter the amount in the Tax Exempt field for Form 1041, 1041-QFT, 1040NR, or 5227 purposes.

Early W/D Penalty: Enter the early withdrawal penalty amount reported on Form 1099-INT. ExacTax transfers this amount to the applicable other deduction line on Form 1041, 1041-QFT, 1040NR, or 5227.

Inv Exp: Enter the investment expenses reported on Form 1099-INT. ExacTax transfers this amount to Form 4952, line 5.

Fed / State W/H: Enter withholding amounts reported on Form 1099-INT. You may enter both federal and state withholding in this field. ExacTax transfers federal withholding amounts entered here to the applicable payment


87

line on Form 1041, 1041-QFT, or 1040NR. State withholding amounts transfer to the applicable tax deduction line on Form 1041, 1041-QFT, 1040NR, or 5227 and the applicable payment line of the state return.

Note: State withholding is not part of the federal tax deduction if the Deduct sales taxes instead of state estimates and state withholding field is marked on Form Deduct in the Deductions folder.

US Govt Oblig ($ or %): Make an entry if any portion of the interest income is attributable to U.S. government obligations. Note that this field is applicable only for interest items entered in the Interest Amount field. ExacTax disregards a US Govt Oblig ($ or %) entry for items entered in the Tax Exempt field.

Notes

You can enter a dollar amount or a percentage in this field. To enter a percentage, use a decimal point to enter a positive amount between 0.000 and 100.000. Otherwise, enter a dollar amount without cents. Either % or $ displays as part of the entry.

Dollar amount entries in the US Govt Oblig and InState Source fields should not exceed the amount entered in the Interest Amount field.

Percentage entries in the US Govt Oblig and InState Source fields should not exceed 100.

Do not use the F/S field for U.S. government obligations.

InState Muni ($ or %): For state processing, make an entry to indicate the portion of the amount entered in the Tax Exempt field that is nontaxable to the integrated state or the state indicated in the Postal Code field. Note that this field is applicable only for interest items entered in the Tax Exempt field. ExacTax disregards an InState Muni ($ or %) entry for items entered in the Interest Amount field.

Note: You can enter a dollar amount or a percentage in this field. To enter a percentage, use a decimal point to enter a positive amount between 0.000 and 100.000. Otherwise, enter a dollar amount without cents. Either % or $ displays as part of the entry. Dollar amount entries should not exceed the amount entered in the Tax Exempt field.

InState Source ($ or %): Make an entry if any portion of the taxable interest item is in-state source income for the integrated state or the state indicated in the Postal Code field. Leave this field blank if none of the interest amount is in-state source income. ExacTax disregards an InState Source ($ or %) entry for items entered in the Tax Exempt field.

Notes



Percentage entries in the US Govt Oblig and Instate Source fields should not exceed 100.

Postal Code: Enter a state postal code unless you are not processing a state return. When processing two or more state returns, make duplicate line entries for those interest items for which different information must be entered for each state. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state. Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal product disregards the state-only entries.


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Note: When processing a multiple-state tax return, the duplicate line entry is not always necessary. Enter a single line entry if only one state return requires information, such as InState Muni ($ or %).

State Use: The codes available in this field are specific to the state code entered in the Postal Code field. If a state postal code was not entered, or if state use codes are not applicable to the state postal code entered, the field is disabled. Enter a code, if applicable, for special processing on the ExacTax/1041 state return.

Do Not Proforma: Enter X to delete the item on next year's proforma.

Foreign Interest Income

If you enter data for foreign accounts in this field, ExacTax automatically completes Form 1116 with all the information necessary to calculate Form 1116. Edit or add information to Form 1116, as applicable. The following table lists the fields on Form 1116 that ExacTax completes automatically, as well as the treatment of the information on Form 1116.

Form 1116 fields automatically completed Form 1116

Category of income Passive Income

Name of country Various

Foreign gross income Total taxable interest income

Date paid or accrued Various

In U.S. dollars - taxes withheld on interest Total foreign taxes paid

The following information describes how the entries in the field affect the calculation of the federal and state tax returns.

Foreign Amount: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Interest Amount field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, ExacTax uses the amount entered in the Interest Amount field as foreign source income for Form 1116 purposes.

Foreign Tax Paid: Enter the amount of foreign taxes paid on foreign interest income. ExacTax uses the amount entered here to calculate Form 1116.

X if Foreign: ExacTax automatically marks this field when an amount is entered in the Foreign Amount or Foreign Tax Paid field. You may also mark this field if the amount entered in the Interest Amount field is foreign, but there is no foreign tax paid. When this field is marked, the amount is considered to be foreign and is transferred to Form 1116 and included in the calculation of the foreign tax credit. This indicator may also be manually added or removed.

Note: To claim a deduction for foreign taxes rather than a credit, enter X in the Report all foreign tax as a deduction field on Form OthCr.

Seller financed mortgage interest income

Use the field to enter the interest income earned from any seller-financed mortgages. The following information describes how the entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter F in the F/S field if the item is applicable only to the federal return.


89


Postal Code: Enter a state postal code unless you are not processing a state return.

When processing two or more returns, make duplicate line entries for those seller-financed mortgage interest items for which different information must be entered for each state.

Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal product disregards the state-only entries.


InState Source ($ or %): Make an entry if any portion of the interest item is in-state source income for the integrated state or the state indicated in the Postal Code field. Leave this field blank if none of the amount is in-state source income.

Note: You can enter a dollar amount or a percentage in this field. To enter a percentage, use a decimal point to enter a positive amount between 0.000 and 100.000. Otherwise, enter a dollar amount without cents. Either % or $ displays as part of the entry. Dollar amount entries should not exceed the amount entered in the Amount field.



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91

Form [26B] - Income

Overview

Use this form to enter information for income items. Also use this input form to complete Form 1116 for foreign-earned interest and dividend income.

Dividends

Enter federal and state dividend information from Forms 1099-DIV to complete the applicable dividend line on Form 1041, 1041-QFT, 1040NR, or 5227. Use the field to enter multiple payers and codes to properly classify the dividend income. If you do not want the payers' names proforma'd and special percentages or codes are not needed for federal or state processing, enter the amounts directly on the input form. The following information describes how entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are processing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter an F in the F/S field if the item is applicable only to the federal return.

Type Code: Enter a code to indicate that the income item is a nominee adjustment amount. If an item of dividend income requires a nominee adjustment, enter the total amount received on one line, and then enter the nominee amount on a separate line in the same column with type code 3. Enter the nominee adjustment as a positive amount.


Payer: Enter the payer's name.

Ordinary Dividend: Enter ordinary dividend amounts from Forms 1099-DIV or similar statements to complete the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227. Do not enter tax-exempt dividends in this field.

Qualified Dividend: Enter the amount of dividends that qualify for long-term capital gain rates from Forms 1099-DIV to complete the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227. Enter the entire ordinary dividend amount, including qualified dividends, in the Ordinary Dividend field. Do not enter tax-exempt dividends in this field.

Total Cap Gain Dist: Enter total capital gain distribution amounts from Form 1099-DIV or similar statements to complete Schedule D, line 9, column (f).

1250: Enter unrecaptured section 1250 capital gain distribution amounts from Form 1099-DIV or similar statements.

1202: Section 1202 gains reported in Form 1099-DIV, box 2d may or may not qualify for the exclusion depending on the shareholder's holding period. Enter 100 percent of section 1202 gains from Form 1099-DIV and if they qualify for the exclusion, enter a code in the 1202 Code field. Enter the description to print with the exclusion on Schedule D in the Corporation related to excluded 1202 stock sale: Reported on 1099-DIV field on this form.

1202 Code: Use this field to distinguish whether the 1202 gain qualifies for the 50-percent, 60-percent, 75-percent, or 100-percent exclusion. Leave this field blank if the gain does not qualify for the exclusion.

28%: Enter 28-percent capital gain distribution amounts from Form 1099-DIV or similar statements. ExacTax prints this information on the Schedule D 28% Rate Gain Worksheet.


92

Tax Exempt: Enter total tax-exempt dividend amounts, including dividend income attributable to private activity bonds issued after 8/7/86. Do not enter tax-exempt dividends in the Ordinary Dividend or Qualified Dividend fields.

Private Act Bond: Enter dividend income attributable to private activity bonds issued after 8/7/86. Amounts entered in this field are used only for Schedule I calculations. You must also enter the amount in the Tax Exempt field for Form 1041, 1041-QFT, 1040NR, or 5227 purposes.

Inv Exp: Enter the investment expenses reported on Form 1099-DIV. ExacTax transfers this amount to Form 4952, line 5.

Fed / State W/H: Enter withholding amounts reported on Form 1099-DIV. You may enter both federal and state withholding in this form. ExacTax transfers federal withholding amounts entered here to the applicable payment line on Form 1041 or 1041-QFT. State withholding amounts transfer to the applicable tax deduction line on Form 1041, 1041-QFT, 1040NR, or 5227 and also to the applicable line of the state return.

Note: State withholding is not part of the federal tax deduction if the Deduct sales taxes instead of state estimates and state withholding field is marked on Form Deduct.

US Govt Oblig ($ or %): Make an entry if any portion of the dividend income is attributable to U.S. government obligations. Note that this field is applicable only for dividend items entered in the Ordinary Dividend field. ExacTax disregards a US Govt Oblig ($ or %) entry for items entered in the Tax Exempt field.

Notes


Dollar amount entries in the US Govt Oblig and InState Source fields should not exceed the amount entered in the Ordinary Dividend field.



InState Muni ($ or %): For state processing, make an entry to indicate the portion of the municipal dividend income (items entered in the Tax Exempt field) that is nontaxable to the integrated state or the state indicated in the Postal Code field. Note that this field is applicable only to dividend items entered in the Tax Exempt field. ExacTax disregards an InState Muni ($ or %) entry for items entered in the Ordinary Dividend field.


InState Source ($ or %): Make an entry if any portion of the dividend item is in-state source income for the integrated state or the state indicated in the Postal Code field. Leave this field blank if none of the Ordinary Dividend amount is in-state source income. ExacTax disregards an InState Source ($ or %) entry for items entered in the Tax Exempt field.

Notes


93




Use separate line entries for the payer if the instate source amount or percentage is different for ordinary dividends versus total capital gain distributions.


When processing two or more state returns, make duplicate line entries for those dividend items for which you must enter different information for each state. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state.

Enter a postal code for each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal product disregards the state-only entries.



Do Not Proforma: Enter X in this field to delete the item on next year's proforma.

Foreign dividends income

If you enter data from foreign sources in this field, ExacTax automatically completes Form 1116 with all the information necessary to calculate Form 1116. Edit or add information to Form 1116, as applicable. The following table lists the fields on Form 1116 that ExacTax completes automatically and the subsequent treatment of the information on Form 1116.

Form 1116 fields automatically completed Form 1116

Category of income Passive income

Name of country Various

Foreign gross income Total taxable dividend income

Foreign qualified dividends Total taxable qualified dividend income

Foreign long-term capital gain /loss Foreign Tax Credit Worksheets

Date paid or accrued Various

In U.S. dollars - taxes withheld on interest Total foreign taxes paid

The following information describes how entries in the field affect the calculation of the federal and state tax returns.

Foreign Ord Div: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Ordinary Dividend field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, ExacTax uses the amount entered in the Ordinary Dividend field as foreign source income for Form 1116 purposes.


94

Foreign Qual Div: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Qualified Dividend field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, ExacTax uses the amount entered in the Qualified Dividend field as foreign source income for Form 1116 purposes.

Foreign Cap Gain: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Total Cap Gain Dist field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, ExacTax uses the amount entered in the Total Cap Gain Dist field as foreign source income for Form 1116 purposes.

Foreign Tax Paid: Enter the amount of foreign taxes paid on foreign dividend income. ExacTax uses the amount entered here to calculate Form 1116.

X if Foreign: ExacTax automatically marks this field when an amount is entered in the Foreign Ord Div, Foreign Qual Div, or Foreign Cap Gain fields or in the Foreign Tax Paid field. You may also mark this field if the amount entered in the Ordinary Dividend, Qualified Dividend, or Total Cap Gain Dist fields are foreign but there is no foreign tax paid. When this field is marked, the amount is considered to be foreign, transfers to Form 1116, and is included in the calculation of the foreign tax credit. This indicator may also be manually added or removed.

Note: To claim a deduction for foreign taxes rather than a credit, enter X in the Report all foreign tax as a deduction field on Form OthCr in the Credits folder.

Extraordinary dividends for simple trusts

This field is applicable only to simple trusts. Enter the amount of extraordinary dividends allocated to corpus and included on Form 1041, Page 1, line 2. Enter the total dividends, including this amount, in the Dividends field on this form or Forms K1 and K1T. ExacTax excludes this amount from the calculation of Form 1041, Page 2, Schedule B, line 1.

Short-term capital gain distributions

Enter the amount considered as dividends for tax purposes but short-term capital gain for accounting income purposes. Enter the total taxable dividends, including this amount, in the Dividends field on this form or Forms K1 and K1T. ExacTax subtracts this amount from dividends and adds it to short-term capital gains in the calculation of accounting income.

Note: ExacTax uses this information to calculate fiduciary accounting income only. An amount entered in this field does not transfer to Schedule D, and it does not change the amount ExacTax calculates for distributable net income.

Other income

Enter other items of income not reported on Form 1099R, W-2, or W-2G and not included on any other input form, as well as federal and state taxes withheld on these items.

Note: Enter pension, railroad retirement, annuity, and other Form 1099R reported income information on Form 1099R. Enter wages on Form W2, gambling winnings on Form W2G, and miscellaneous income on Form 1099M.

The following information describes fields in this field and how to use them for processing state returns.

F/S: Use this field only if you are preparing multiple state tax returns. For multiple state tax returns, make duplicate line entries of another income item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter F in the F/S field if the item is applicable only to the federal return.



95

Investment Income: Enter X to include the income as investment income on Form 4952 and on Schedule K-1.

Description: Enter a description of the income. A custom fieldview is available.

Amount: Enter the amount of other income.

Federal W/H: Enter the federal withholding amount. This information transfers to the applicable payment line on Form 1041, 1041-QFT, or 1040NR.

State W/H: Enter the state withholding amount. This amount transfers to the applicable tax deduction line on Form 1041, 1041-QFT, 1040NR, or 5227 and, also, to the applicable line of the state return.

Note: State withholding is not part of the federal tax deduction if the Taxes deduction: Deduct sales taxes instead of state estimates and state withholding field is marked on Form Deduct.


City Code: Enter the three-character city code for the city in which the activity is located. Only the ExacTax/1041-NY application uses this field.

State Use: The codes available in this field are specific to the state code entered in the Postal Code field. If a state postal code was not entered, only the tax refund codes are available. Enter a code as applicable for special processing on the ExacTax/1041 state return.

Nontaxable income: Treat difference

By default, ExacTax considers the difference between the Form 1099R gross distribution and taxable amount as nontaxable income, which affects the return as follows:

Allocates a portion of indirect expense to this category of income, unless the category is excluded in the Allocation of Indirect Expenses section on Form Allocate.

Answers Yes to Form 1041, Page 2, Other Information, Question 1.

To change the default, delete the X from this field.

Nontaxable income: Other

Enter information that pertains to nontaxable income (other than tax-exempt interest and dividends) received in the current year. This amount is used for the calculation of nontaxable income on Form 5227, the calculation of tax-exempt income on Form 1041, Page 2, Other Information, Question 1, and is included in accounting income.

Note: Tax-exempt income includes tax-exempt interest and dividends, as well as nontaxable income for the allocation of expenses on the Allocation of Deductions for Tax-Exempt Income Worksheets 1 and 2. To exclude nontaxable income from the allocation of indirect expenses, mark the Nontaxable income field in the Allocation of Indirect Expenses section on Form Allocate.


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97

Form [27A] - Capital Asset Sales

Overview

Use this form to enter information for income items.

Schedule D / Form 8949 - Capital Gain / Loss Information

Capital gains or (losses)

Enter sale information of capital assets that are not sold on installment. Enter passive and nonpassive transactions as well. Some of the fields in the field are described as follows:

Type: Enter the appropriate code to indicate the asset type. If you enter C in the Type column with long-term dates, ExacTax defaults the holding period to long-term and includes the gain or loss in the 28-percent rate calculations. If you enter V, X, Y, or Z in the Type column with long-term dates, ExacTax defaults the holding period to long-term with 28-percent rates and enters a subtraction line for the 50-percent, 60-percent, 75-percent, or 100-percent exclusion on Form 8949.

Tangible: Enter X to designate an asset as tangible property. ExacTax uses this information for processing state returns that exclude sales of intangible assets.

8949 Box:

ExacTax uses this field to determine which unit of Form 8949 to report the transaction.

Code Description

1 Box A or D - Reported on 1099-B showing basis was reported to the IRS

2 Box B or E - Reported on 1099-B showing basis was not reported to the IRS

3 Box C or F - Not reported on 1099-B

4 Reported directly on Schedule D

Note: ExacTax/1041 defaults to 3, Box C treatment when this field is blank. To change the default behavior for all clients, choose Setup > 1041 Fiduciary > Other Return Options button. In the General tab, select an option from the Default for Form Income, Capital gains / losses, Form 8949 transactions drop-down list.

1099B Errors: ExacTax uses this field to identify 1099B errors that were reported to the IRS.

Code Description Form 8949 Adj Code

Blank 1099-B as reported to IRS does not contain errors (default)

1 1099-B Box 2 Type of gain (loss) is incorrect T

2 1099-B Box 1e Cost or other basis reported to the IRS is incorrect B

3 1099-B Box 1e and 2 are incorrect T; B

Description: A custom fieldview is available.

Date Acquired / Sold: The following codes are available if a specific date is not appropriate.


98

Code Result

I or 999998 Inherited

V or 999999 Various

B Bankrupt

C Continue

T 1099 Tax

W Worthlss

ExacTax treats all but the Inherited code as a short-term holding period. To change the holding period, use the Force field to force the sale to long term.

Notes

If electronically filing this return, IRS Publication 1438 does not accept Various as an entry in the Date sold fields. The word Various or Inherit is acceptable in the Date acquired field. The words 1099 Tax, Bankrupt, Worthlss, or Continue are not accepted in any date fields. You must enter valid text or date, or the return will be rejected.

If ExacTax cannot calculate a holding period (for example, a date field either is blank or marked Various), the field defaults to short-term treatment. Use the Force field to force a different treatment.

Force: ExacTax determines short-term or long-term holding period based on the dates entered in the Date acquired and Date sold fields and enters a code in the Holding Period field. To change the holding period, enter 1 for short-term, 2 for long-term, or 3 to classify as 28-percent rate property in the Force field.

Adj to Gain / Loss: Use these fields to adjust the amounts reported to the IRS on a 1099-B, to report that a 1099-S (or substitute statement) is incorrect, to exclude or postpone a capital gain, to report a disallowed loss, etc.

Notes

An Adj Code must be entered for every amount in the Adj to Gain / Loss column.

The Gain or Loss column includes the Adj to Gain / Loss column to arrive at the taxable gain / loss amount. Review of the Gain or Loss column before you enter the adjustment may help to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain / loss.

Adj Code: Use this field to enter the applicable code for the adjustment amount entered in the Adj to Gain / Loss field. All adjustment amounts reported on the form must have an adjustment code.

The codes you can enter in this field are listed in the following table and in the fieldview.

Code Description

N Received 1099-B or 1099-S as a nominee for actual owner

D Accrued market discount in box 1g

Q Sold or exchanged qualified small business stock

X Excluded gain on DC Zone assets or qualified community assets

R Postponed gain (QSB rollover, empowerment zone, etc.)

W Nondeductible loss from a wash sale


99

Code Description

L Nondeductible loss other than wash sale

E Selling expenses or option premiums not on 1099-B or 1099-S

M Multiple transactions reported on a single row

O Adjustment not explained with any other code

EW Selling expenses and nondeductible wash sale

MN Received 1099 as nominee for actual owner

MD Accrued market discount

MX Excluded gain DC Zone/Qualified community assets

MR Postponed gain on rollover

MW Nondeductible loss from wash sale

ML Nondeductible loss other than wash sale

ME Selling expenses/option premium not on 1099

MO Adjustment not explained with any other code

Gain or Loss: ExacTax automatically calculates the gain or loss for the sale based on the sales price, cost / basis, and amounts entered in the Adj to Gain / Loss field. Note that you cannot modify this column, as ExacTax calculates the column.

Note: The Gain or Loss column calculates before the Adj to Gain / Loss is entered, so the information in the column may be used to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain / loss.

Postal Code: Enter a state postal code unless you are not processing a state return. If you enter the two-character postal code, certain state applications determine whether the state application should include this sale in the state calculations.

State Use: The codes available in this field are specific to the state code entered in the Postal Code field. If a state postal code was not entered, or if state use codes are not applicable to the state postal code entered, the field is disabled. Enter a code, if applicable, for special processing on an ExacTax/1041 state return.

Note: Enter current-year installment sales on Form Sale and prior-year installment sales on Form InstPY. You can find these forms in the Income, Business, Farm, K1 1065, 1120S, K1 1041, Rent & Royalty, and Personal Sale folders.

Form / Unit: Enter the form and unit number of the activity if this is related to a passive activity. Once you enter the form or schedule in the Form field, enter the corresponding unit number or use the fieldview. This fieldview shows the unit numbers and description of the desired forms or schedules that exist for the client.

Note: To include the gain or loss on Form 8582, you must enter B in the Type field as well as the form and unit of the passive activity in the Form and Unit fields.


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101

Form [27B] - Capital Asset Sales

Overview

Use this form to enter information for income items.

Schedule D / Form 8949 - Capital Gain / Loss Information

Capital gains or (losses)

Enter sale information of capital assets that are not sold on installment. Enter passive and nonpassive transactions as well. Some of the fields in the field are described as follows:

Type: Enter the appropriate code to indicate the asset type. If you enter C in the Type column with long-term dates, ExacTax defaults the holding period to long-term and includes the gain or loss in the 28-percent rate calculations. If you enter V, X, Y, or Z in the Type column with long-term dates, ExacTax defaults the holding period to long-term with 28-percent rates and enters a subtraction line for the 50-percent, 60-percent, 75-percent, or 100-percent exclusion on Form 8949.

Tangible: Enter X to designate an asset as tangible property. ExacTax uses this information for processing state returns that exclude sales of intangible assets.

8949 Box:

ExacTax uses this field to determine which unit of Form 8949 to report the transaction.

Code Description

1 Box A or D - Reported on 1099-B showing basis was reported to the IRS

2 Box B or E - Reported on 1099-B showing basis was not reported to the IRS

3 Box C or F - Not reported on 1099-B

4 Reported directly on Schedule D

1099B Errors: ExacTax uses this field to identify 1099B errors that were reported to the IRS.

Code Description Form 8949 Adj Code

Blank 1099-B as reported to IRS does not contain errors (default)

1 1099-B Box 2 Type of gain (loss) is incorrect T

2 1099-B Box 1e Cost or other basis reported to the IRS is incorrect B

3 1099-B Box 1e and 2 are incorrect T; B


Date Acquired / Sold: The following codes are available if a specific date is not appropriate.

Code Result

I or 999998 Inherited

V or 999999 Various

B Bankrupt


102

Code Result

C Continue

T 1099 Tax

W Worthlss

ExacTax treats all but the Inherited code as a short-term holding period. To change the holding period, use the Force field to force the sale to long term.

Notes

If electronically filing this return, IRS Publication 1438 does not accept Various as an entry in the Date sold fields. The word Various or Inherit is acceptable in the Date acquired field. The words 1099 Tax, Bankrupt, Worthlss, or Continue are not accepted in any date fields. You must enter valid text or date, or the return will be rejected.

If ExacTax cannot calculate a holding period (for example, a date field either is blank or marked Various), the field defaults to short-term treatment. Use the Force field to force a different treatment.

Force: ExacTax determines short-term or long-term holding period based on the dates entered in the Date acquired and Date sold fields and enters a code in the Holding Period field. To change the holding period, enter 1 for short-term, 2 for long-term, or 3 to classify as 28-percent rate property in the Force field.

Adj to Gain / Loss: Use these fields to adjust the amounts reported to the IRS on a 1099-B, to report that a 1099-S (or substitute statement) is incorrect, to exclude or postpone a capital gain, to report a disallowed loss, etc.

Notes

An Adj Code must be entered for every amount in the Adj to Gain / Loss column.

The Gain or Loss column includes the Adj to Gain / Loss column to arrive at the taxable gain / loss amount. Review of the Gain or Loss column before you enter the adjustment may help to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain / loss.

Adj Code: Use this field to enter the applicable code for the adjustment amount entered in the Adj to Gain / Loss field. All adjustment amounts reported on the form must have an adjustment code.

The codes you can enter in this field are listed in the following table and in the fieldview.

Code Description

N Received 1099-B or 1099-S as a nominee for actual owner

D Accrued market discount in box 1g

Q Sold or exchanged qualified small business stock

X Excluded gain on DC Zone assets or qualified community assets

R Postponed gain (QSB rollover, empowerment zone, etc.)

W Nondeductible loss from a wash sale

L Nondeductible loss other than wash sale

E Selling expenses or option premiums not on 1099-B or 1099-S

M Multiple transactions reported on a single row

O Adjustment not explained with any other code


103

Code Description

EW Selling expenses and nondeductible wash sale

MN Received 1099 as nominee for actual owner

MD Accrued market discount

MX Excluded gain DC Zone/Qualified community assets

MR Postponed gain on rollover

MW Nondeductible loss from wash sale

ML Nondeductible loss other than wash sale

ME Selling expenses/option premium not on 1099

MO Adjustment not explained with any other code

Gain or Loss: ExacTax automatically calculates the gain or loss for the sale based on the sales price, cost / basis, and amounts entered in the Adj to Gain / Loss field. Note that you cannot modify this column, as ExacTax calculates the column.

Note: The Gain or Loss column calculates before the Adj to Gain / Loss is entered, so the information in the column may be used to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain / loss.

Postal Code: Enter a state postal code unless you are not processing a state return. If you enter the two-character postal code, certain state applications determine whether the state application should include this sale in the state calculations.


Note: Enter current-year installment sales on Form Sale and prior-year installment sales on Form InstPY. You can find these forms in the Income, Business, Farm, K1 1065, 1120S, K1 1041, Rent & Royalty, and Personal Sale folders.

Form / Unit: Enter the form and unit number of the activity if this is related to a passive activity. Once you enter the form or schedule in the Form field, enter the corresponding unit number or use the fieldview. This fieldview shows the unit numbers and description of the desired forms or schedules that exist for the client.

Note: To include the gain or loss on Form 8582, you must enter B in the Type field as well as the form and unit of the passive activity in the Form and Unit fields.


104

Shareholder Undistributed Long-Term Capital Gains2439 (2016)

Form 2439 Facsimile

State

Corrected


Name of RIC or REIT

Tax paid by the RIC or REIT on the box 1a gains

Collectibles (28%) gain

Shareholder's address (If different from Screen 1041):

Section 1202 gain


Total undistributed long‐term capital gains

RIC or REIT address:

2

1d

1c

1b

1a

Section 1202 exclusion code


Foreign province or county

Foreign postal code

EIN 1 2

3

5

6

7 8 9

10

11 12 13

14 15

16

17

18

19

20

21

22

23

24

2439 27C

2016 FIDUCIARY1/23/2017 8:18:05 AM


105

Form [27C] - Shareholder Undistributed Long-Term Capital Gains

Overview

Form 2439 Facsimile

Name of RIC or REIT

The payer’s name entered in this field is used as the unit description in the drop-down list for this form.

Total undistributed long-term capital gains

Enter the amount of total undistributed long-term capital gains reported on Form 2439. ExacTax prints this information on Schedule D.


Enter any unrecaptured section 1250 gain included in the undistributed long-term capital gain. ExacTax prints this amount on line 10 of the Schedule D Unrecaptured Section 1250 Gain Worksheet.

Section 1202 gain

Enter the amount of section 1202 gain reported on Form 2439. ExacTax assumes this is not eligible for exclusion unless there is an entry in the Section 1202 exclusion code field.

Section 1202 exclusion code

Use this field to distinguish whether the section 1202 gain qualifies for the 50-, 60-, 75-or 100-percent exclusion. Leave this field blank if the gain does not qualify for the exclusion.

Collectibles (28%) gain

Enter the amount of 28-percent rate gain reported on Form 2439. ExacTax prints this information on the Schedule D 28% Rate Gain Worksheet.

Tax paid by the RIC or REIT on the box 1a gains

Enter the amount of tax paid from Form 2439, box 2. ExacTax transfers this amount to the applicable line on Form 1041, 1041-QFT, or 1040NR.


106

Income

General Information

C Schedule C

6FSCHC 01 11/07/16

Activity unit number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]

Expenses

Employer ID number . . . . . . . . . . . . . . .

State Postal code (Required for state processing)

City code (NYC = New York City, YON = Yonkers) . . . . . . . . .

Principal business or profession (Mandatory) (35)

Business code . . . . . . . . . . . . . . . . . . . . . . . . . . .

Business name (35)

Business address (35)

City (20) . . . . . . . . .State/Zip code . . . .[11]

[10]

Accounting method (1 = Cash (Default), 2 = Accrual, 3 = Other)

Other (25): . .[13]

Material participation. . . . . . . . . .

[19]

[12]

[14]

[15]

Returns and allowances . . . . . . . . . . . . . . . . . . .[26]

Amount [27]Description (25)#

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[30]Car and truck (Force) . . . . . . . . . . . . . . . . . . . . . .

[31]Commissions/fees . . . . . . . . . . . . . . . . . . . . . . .

[32]Contract labor . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion (Force) . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) . . . . . . . . . . . . . . . . . . . . . .Employee benefits (other than pension) . . . . . . .Insurance (other than health) . . . . . . . . . . . . . . .

[28]

Interest-financial institution . . . . . . . . . . . . . . . . .

[29]


Legal/professional services . . . . . . . . . . . . . . . .

[44]

Office expenses . . . . . . . . . . . . . . . . . . . . . . . . .

[45]

Pension/profit sharing plan. . . . . . . . . . . . . . . . .

[46]

Rent/Lease - machinery. . . . . . . . . . . . . . . . . . . .

[47]

Rent/Lease - other business property . . . . . . . . .

[48]

Repairs/maintenance . . . . . . . . . . . . . . . . . . . . .Supplies (not included in COGS) . . . . . . . . . . . .Taxes/licenses . . . . . . . . . . . . . . . . . . . . . . . . . .Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Meals/entertainment (subject to 50% limit) . . . . . .

[40]

Meals (subject to DOT 80% limit) . . . . . . . . . . . . . . .

[41]

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[42]

Wages (less employment credit) . . . . . . . . . . . . . . .

[43]


Memo only Total Expenses

[§ 27] Other income

[§ 38] Interest other

[§ 53] Other expenses

FIDUCIARY

Began/acquired business this year . . . . . . . . . . . . . . . [16]

Allocable to corpus . . . . . . . . . . . . . . . . . . . . . . . .

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]1 = Entire disposition2 = Entire disposition of passive activity on installment basis

Form 1099-MISC explanation . . . . . . .[§ 25] (See Form Exp {90})

Form 1098 name / address . . . . . . . . [§ 39] (See Form Exp {90})

Form 1098 explanation . . . . . . . . . . . . [§ 37] (See Form Exp {90})

28A

28AOverflow # 2016

ExacTax, Inc.

[§ 21] Multi-state allocation State% (xxx.xx)#MUST complete when more

than 1 state in the return.!

Example:75.00 CA25.00 AZ

Memo only Total Income

[2]

[3]

[4][5][6][7]

[9]

(1 = Yes (Default), 2 = No)

Payment were made that require filing Form(s) 1099. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [17]

If yes, all required Form(s) 1099 were or will be filed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No) [18]

Gross receipts or sales . . . . . . . . . . . . . . . . . . . [23]Income reported to you on Form W-2 if the "Statutory Employee" box is checked . . . . . . . . .[24]

[35][36]

[33][34]

[49][50][51][52]


107

Form [28A] - Business Profit or Loss Page 1

Overview

Use this form to enter Schedule C information.

General Information

Use this section to enter general information that pertains to Schedule C, Profit or Loss From Business.

Unit

ExacTax automatically enters the next available number. Override this number if necessary, but do not leave the field blank. ExacTax uses this information to gather and coordinate information for the business unit activity. For example, the activity unit number enables ExacTax to link information (such as income or loss, sales, credits, and assets detail) for the passive calculations.

Principal business or profession

The principal business or profession you enter in this field prints on Schedule C, line A and is used as the unit description for depreciation, the state allocation spreadsheet, and for the folders block.

Name

Enter the business name.

Corpus

If all or part of the profit or loss from this activity is allocated to corpus rather than income, enter the percentage that is allocable to corpus in XXX.XXXX format.

State


Business: Code / description

Enter the appropriate principal business or professional activity code in the field provided or use the fieldview to make the selection. Note that this is a multiple-level fieldview; make two selections before the code is entered in the field.

Address

Enter the business address in the fields provided.

Accounting method / Description for other

Enter the code that represents the method of accounting or use the fieldview to make the selection. If you enter code 3 in this field, you must also complete the Description for other field. The information prints on Schedule C, line F next to the Other (specify) checkbox.

Material participation


108

Enter 2 if the trust did not materially participate in this activity. The default is 1 for Yes.

Note: If you enter 2, ExacTax considers this activity passive and automatically defaults to a passive activity code of 1. The passive activity code is entered on Form C-2.

Began or acquired business this year

Enter X if the client started or acquired the business this year.

City code / State use code

Enter the three-character code for the place where the activity is located. Only the New York and Oklahoma state returns use this code.

Note: For New York returns, enter YON to identify the information as derived from sources within the City of Yonkers. For nonresident or part-year resident returns, ExacTax uses this information to complete Form Y-206, City of Yonkers Nonresident Fiduciary Earning Tax Return. City of New York and Yonkers source income also appears on Form IT-205-A, Schedule 4, for the calculation of full-year or part-year resident city taxes.

Disposition of activity

Enter 1 to delete this activity on next year's proforma. This option also releases all suspended losses if this was a passive activity. Enter 2 if this is a passive activity sold on an installment basis. ExacTax treats the disposition as follows:

If this is a passive activity with passive-loss carryovers, ExacTax does not delete the activity for proforma purposes and allows losses based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year.

If this is a passive activity with no passive carryovers, ExacTax does not proforma this form or any other forms related to this activity, but proformas the related Form Sale and/or InstPY to next year's Form InstPY.

Note: If this activity has assets, you must move or transfer those assets to another activity before proforma.

Allocation

To open the state allocation spreadsheet, the following conditions must be present in the current client.

The client being processed must have a state return attached.

You must have Input Form Data Entry view selected (choose View > Input Form).

Data must exist in the Principal business or profession field on Form C.

You can use two methods (percentage or amount) to allocate federal net income to the applicable states displayed in the state allocation spreadsheet.

Note: Amount fields applicable to one state may not be applicable to another state. Amounts that do not apply to a particular state are disabled (shaded).

Percentage: Enter a percentage in XXX.XXXX format in the first field available in the state allocation spreadsheet. Select the state to which this applies from the drop-down list. Click the Apply button. ExacTax automatically calculates the amounts attributable to that state and displays the amounts in the spreadsheet. The percentage entered for that


109

particular state appears below the state name. If enabled, specific item amounts can be changed (overwritten) on the spreadsheet from the calculated amount.

Amount: When a percentage of the federal amount does not apply, you can enter specific item amounts, if enabled, in the spreadsheet for the applicable state. Zero (0) is a valid entry and prevents the state amount from defaulting to the federal calculated amount. If you leave a field blank, the federal amount, if present, is used in the state calculation.

You can print the state allocation spreadsheet in a report format for future reference. Click the Print or Preview button on the lower portion of the spreadsheet. If licensed, you can also print to FileCabinet CS.

Income

Use this section to enter the gross receipts or sales, returns and allowances, and other income that correspond to Schedule C, Part I.

Gross receipts or sales

Enter the gross receipts or sales that correspond to Schedule C, Part I.

Note: You may also enter gross receipts for this activity in Form 1099M, located in the Business folder. You may enter information in this field and in Form 1099M.

Form 1099-MISC explanation

Enter information if the total amounts that were reported in box 7 on Form 1099-MISC are more than the total you are reporting on Schedule C, line 1.

Returns and allowances

Enter the returns and allowances that correspond to Schedule C, Part I.

Other income

Use the field to record other income information that transfers to Schedule C, Page 1, line 6. A custom fieldview is available in the field.

Note: You may also enter other income for this activity in Form 1099M, located in the Business folder. You may enter information in this field and in Form 1099M.

Expenses

Use this section to enter information to complete Schedule C, Part II.

Depletion (Force)

Enter an amount if you want to override the calculated depletion from the ExacTax/Oil & Gas module. If you are not using the ExacTax/Oil & Gas module and are entering a working interest directly on Form C, enter the depletion amount in this field. ExacTax does not calculate any limitations or tax preferences based on data entry in this field.

Note: ExacTax allocates this amount to beneficiaries based on the percentages entered in the Depletion field in the View > Beneficiary Information > Federal tab. The remaining amount prints on Schedule C, line 12.

Depreciation (Force)


110

If you retrieve depreciation expense using tax code 813 or manually enter the expense amount in this field, ExacTax uses this amount rather than the amount it calculates on Form 4562.

Note: ExacTax does not separately allocate an amount in this field to beneficiaries. The entire amount is included with the net income or loss calculated for this activity.

Meals and entertainment

Enter 100 percent of the meal expenses. ExacTax calculates the allowable deduction.

Meals

Enter 100 percent of the meals expense for employees that are subject to the hours of service limitations of the Department of Transportation (DOT). ExacTax automatically calculates the allowable deduction. Examples of qualifying employees are: certain air transportation employees, interstate truck and bus operators, railroad employees, and merchant mariners under Coast Guard regulations.

Wages

Enter the amount of wages paid less any allowable employment credits. ExacTax does not automatically allocate the allowable employment credits to the various activities.

Other

Enter other expenses in this field.


111

Cost of Goods Sold

CIRCDEPLDEPRFARM

= Circulation costs-post 1986= Depletion on property-post 1986= Depreciation on property-post 1986= Tax shelter farm activities

IDCMINERESE

= Intangible drilling costs= Mining exploration and development-post 1986= Research and experimental costs

Description (45)

C-2

6FSCHC-2 01 11/07/16 FIDUCIARY

Schedule C - Activity Identification


Passive Activity Information

Aggregation group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Activity unit number . . . . . . . . . . . . . . . . . .

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D - short-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D - long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 4797 - Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D - 28% rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regular

Amount [23]#Preference items . . [§ 23] Code

Principal business or profession (35)

Amount “at risk,” if not 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 4797 - Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28B

28BOverflow # 2016

ExacTax, Inc.

(Mandatory)

Inventory method / description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Cost, 2 = LCM, 3 = Other) [5]

[7]Change in inventory (25): . . . . . . .

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Beginning inventory explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 13] Other costs

[§ 9] (See Form Exp {90})

Auto Information

Another vehicle for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)Available for off-duty hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 = No)Evidence to support deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, written; 2 = Yes, not written; 3 = No)Date placed in service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)Total miles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Business miles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Commuting miles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Information

Passive activity code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Other passive activity, 3 = No limitation applies)

Carryovers:

[1]

[8]

[11]

[10]

[14]

[15][16][17]

[19][20][21]

[18]

[22]

[25][26]

[33][34][35][36][37][38]

[27][28][29][30][31][32]


112

Form [28B] - Business Profit or Loss Page 2 and Passives

Overview

Use this form to enter at risk and passive carryover information for the business activity.

Cost of Goods Sold

Use this section to enter the cost of goods sold information for Schedule C, Part III.

Identification

ExacTax transfers information from Form C to this section. You can modify the information in this section only by making changes on Form C.

Inventory method code / description

Enter the code that represents the method of inventory or use the fieldview to make the selection. If you enter code 3 in the Inventory method code / description field, you must also enter an explanation in the field.


Change in inventory

If there was a change in determining the costs, quantities, or valuations of inventories, enter an explanation. This marks the Yes checkbox on Schedule C, Page 2, line 34 and prints the statement.


Beginning inventory

Enter the amount of beginning inventory. ExacTax uses the cost of goods sold information that you entered to complete Schedule C, Page 2, line 35. If ExacTax/1041 was used in the prior year, the beginning inventory information proformas automatically.

Explanation

If you changed the method of accounting, enter an explanation for the difference between the ending inventory amount on last year’s return and the beginning inventory amount on this year’s return.

Other costs

Use the field to record other cost information that transfers to Schedule C, Page 2, line 39.

Ending inventory

Enter the amount of ending inventory. ExacTax uses the cost of goods sold information that you entered to complete Schedule C, Page 2, line 41.

Auto Information

Use this section to enter vehicle information as requested on Schedule C, Page 2 only if not using the asset input forms for depreciation purposes.


113

Another vehicle for personal use

Enter 1 to indicate that the vehicle was available for personal use or 2 to indicate that it was not.

Note: If you prepare Form 4562 for this activity, ExacTax does not complete this section of Schedule C.

Available for off-duty hours

Enter 1 to indicate that the vehicle was available for personal use during off-duty hours or 2 to indicate that it was not available during off-duty hours.


Evidence to support deduction

Enter a code to indicate whether there is evidence to support the deduction or use the fieldview to make the selection. Enter 1 to indicate that there is evidence to support the deduction and the evidence is written. Enter 2 to indicate that there is evidence to support the deduction but the evidence is not written. Enter 3 if there is no evidence to support the deduction.


Date placed in service

Enter the date the vehicle was placed in service.


Total miles

Enter the total number of miles driven for the year.


Business miles

Enter the total number of business miles for the year.


Commuting miles

Enter the total number of commuting miles driven for the year.


Other Information

Use this section to enter data for at risk limitations and alternative minimum tax.

Amount "at risk," if not 100%

Enter the amount of the investment at risk. If you leave this field blank, ExacTax assumes 100 percent of the investment is at risk. ExacTax limits the amount of loss for the current unit to the amount in this field, if applicable.

Note: Form 6198 is available in ExacTax/1041 as a non-calculating form.


114

Preference items

Enter the alternative minimum tax preference amounts in the field. ExacTax uses this information to complete Schedule I.


Use this section to enter passive activity carryovers.

Passive activity code

Enter the appropriate passive activity code. ExacTax treats entities coded 1 as passive and entities coded 3 as nonpassive. If you enter passive carryovers for entities coded 3, ExacTax considers them to be former passive activities. Income and losses are considered passive or active as follows:

If the current-year net income is less than the prior-year suspended losses, ExacTax reports both prior-year suspended losses and current-year net income on Form 8582.

If the current-year net income is equal to or greater than the prior-year suspended losses, neither amount is reported on Form 8582.

If there is a current-year net loss, only the prior-year suspended losses are reported on Form 8582.

Aggregation group

If this is an aggregated activity, enter the aggregation group number. Units with the same aggregation number are reported as one item on the worksheets for Form 8582. All of the entities in an aggregation must have the same passive activity code.

Carryovers

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter last year’s regular and AMT passive loss carryovers for this activity.

Notes

ExacTax does not use the regular carryovers as a default Alternative Minimum tax (AMT) amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the Regular and AMT fields. ExacTax also uses this information to complete Schedule I and Form 8582, if applicable.

Enter long-term Schedule D amounts net of 28 percent. ExacTax adds the amounts in the 28% rate fields to the amounts in the respective long-term fields. This differs from data entry for gains and losses elsewhere in ExacTax.


115

MUST complete whenmore than 1 state in the

return.

Example:100.00

CA100.00

AZ

[§ 23] Multi-state allocation State% (xxx.xx)#

!

Income Other Information

Federal Passive Activity Carryovers

Refinancing Points

Nonbusiness (State use only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allocable to corpus . . . . . . . . . . . . . . . . . . . . . . .

Amount

RENT Rent and Royalty Property Other and Passives

6FRENT 01 11/07/16

Activity unit number . . . . .

Type of (1 = Single Family Residence, 2 = Multi-Family Residence, 3 = Vacation/Short-term, 4 = Commericial, 5 = Land,6 = Royalities, 7 = Self-rental, 8 = Other (describe)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

State postal code (Required for state processing)

[1]

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Auto & travel . . . . . . . . . . . . . . . . . . . . . . . . . .Cleaning & maintenance . . . . . . . . . . . . . . . . .Commissions . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal & professional . . . . . . . . . . . . . . . . . . . .

Description (20) [2]

Ownership percentage, if not 100.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx)

[3]

Management fees . . . . . . . . . . . . . . . . . . . . . .

Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[27]

[35]

[29]

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) . . . . . . . . . . . . . . . . . . . .

Description (25) Amount [43]#

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[30]

Depletion (Force) . . . . . . . . . . . . . . . . . . . . . .

[§ 43] Other Expenes

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Complete disposition, 2 = Disposition on installment sale basis)

Mortgage interest . . . . . . . . . . . . . . . . . . . . . .

Other interest . . . . . . . . . . . . . . . . . . . . . . . . .

Points paid or unamortized balance . . . . . . . .

[12]Number of payments remaining . . . . . . . . . . . [11]Number of payments made this year . . . . . . .

[10]

Amount "at risk," if not 100% . . . . . . . . . . . . . .

Code* AmountCode

Form 4797 - Part I . .

Sch. D - short-term .Sch. D - long-term . .Sch. D - 28% rate . . .

[20]

[21][22][23]

RegularOperating

Form 4797 - Part II . . [25]

[30][31][32][33]

AMT

[24]

[§ 14] Preference items##

FIDUCIARY

[39]

[34]

(Mandatory)

Type of royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Patent, 2 = Copyright, 3 = Other (Default))[17]

Overflow # 2016 31

ExacTax, Inc. 31

Personal Use Information

Personal use percentage (Force). . . . .(xxx.xx) [7]

Carryover of disallowed expenses into current year

[8]Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . [9]

Form 1098 explanation [§ 33]

Seller financed interest . . . . . . . . . . . . . . . . . .

[25]

Form name / address [§ 36]

Passive activity code (Blank or 1 = Other passive activity,2 = Rental real estate with active participation (estate only),3 = No limit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*CODE

CIRC - Circulation costs -post 1986

DEPL - Depletion on property-post 1986

DEPR - Depreciation on property-post 1986

FARM - Tax shelter farm activities

IDC - Intangible drilling costs

MINE - Mining exploration & development-post 1986RESE - Research and experimental costs

Rent-2

[4]

[13]

[16]

[17]Aggregation group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of days rented . . . . . . . . . . . . . . . . . . . [6]Number of days use personally . . . . . . . . . . . . .[5]

Other Information

[19]

[25]

[41][42]

[40]

Payments were made that require Form(s) 1099 (1 = Y, 2 = N) [5] If yes, all required Forms(s) 1099 were/will be filed (1 = Y, 2 = N)[6]

[22][20]

[16]Other rental description (40)

Rent and royalties . . . . . . . . . . . . . . . . . . . . . .[24]

Expenses

[29]

[28]Schedule D:

[19] [27][18] [26]

Other rental . . . . . . .Rental real estate . . .Ordinary business . .

[31][32]

[28]

[37][38]

[15]

Physical address [7] City [8] State[9] Zip [10]

Foreign country code . . . . . . . . [11] Foreign name . . . . [12]

Foreign Providence/country . . .[13] Foreign Postal code [14]

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Farm rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [18]


116

Form [31] - Rent and Royalty Property

Overview

Use this form to enter detail information for rental real estate and royalty properties. Both types of properties print on Schedule E, Page 1.

General Information

ExacTax uses the information in this section for classification and calculation purposes.

Unit

ExacTax automatically enters the next available number. Override this number if necessary, but do not leave this field blank. ExacTax uses this information to gather and to coordinate information for the unit activity. For example, the activity unit number enables ExacTax to link information (such as income or loss, sales, credits, and assets detail) for the passive calculations.

Description

ExacTax uses the description you enter in this field as the unit description for depreciation and the state allocation spreadsheet and for the description in the folders block.

Corpus

If all or part of the income or loss from this activity is allocated to corpus rather than to income, enter the percentage that is allocable to corpus in XXX.XXXX format.

State


Physical address

Enter the physical address of the property (city, state, and ZIP code).

Type

Enter the appropriate type code for the rental real estate property or royalty property. The available codes are listed in the following table.

Code Description Results

1 Single family residence

Schedule E, line 1a and line 2 are completed. ExacTax defaults to 1 = Single Family Residence if this field is blank.

2 Multi-family residence

Schedule E, line 1a and line 2 are completed.

3 Vacation/Short-term Schedule E, line 1a is completed. Line 2a is completed from information on Form Rent-2.

4 Commercial Schedule E, line 1a and line 2 are completed.

5 Land Schedule E, line 1a and line 2 are completed. Property is treated as subject to the net


117

Code Description Results

income recharacterization of passive income rules.

6 Royalties Schedule E, line 1a and line 2 are not completed. Property is not subject to passive activity rules.

7 Self-rental Schedule E, line 1a and line 2 are completed. Property is treated as subject to the net income recharacterization of passive income rules.

8 Other Schedule E, line 1a and line 2 are completed.

Notes

Self-rental properties (Code 7) and Land (Code 5), are automatically included in the "Subject to recharacterization rules." The rental income from activities indicated as "Subject to recharacterization rules" is treated as nonpassive income. See IRS Publication 925 for the rules that apply to recharacterization for substantially nondepreciable property (Land) or properties rented to activities with material participation (Self-rental).

Income from Land rental (Code 5) and Royalties (Code 6) is included in investment income on Form 4952, and in nonbusiness income on Form 1045 and the Net Operating Loss Worksheeet.

Ownership percentage, if not 100

If the estate or trust does not own the entire property, enter a percentage representing the estate’s or trust’s ownership. Enter total receipts and expenses for the property. ExacTax applies the ownership percentage to this subtotal and transfers the amounts to Schedule E.


Enter 1 to delete this activity on next year’s proforma. This option also releases all suspended losses if this was a passive activity. Enter 2 if this is a passive activity being sold on an installment basis. ExacTax treats the disposition as follows:

If this is a passive activity with passive loss carryovers, ExacTax does not delete the activity for proforma purposes, and allows losses based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year.

If this is a passive activity with no passive carryovers, ExacTax does not proforma this form or any other forms related to this activity, but proformas the related Form Sale and/or InstPY to next year’s Form InstPY.

Note: If this activity has assets, you must move or transfer them to another activity before proforma.

Income

Rents and royalties

Enter the gross rent and royalty income for the property.

Note: You may also enter rents and royalty income for this activity on Form 1099M, located in the Rent & Royalty folder. You may enter information in this field and on Form 1099M.

Expenses

Mortgage interest

Enter the amount of mortgage interest paid. ExacTax adds this information to the information in the Refinancing Points section on Form Rent-2 before entering the information on Schedule E.


118

Other interest

Enter the net amount of other interest to appear on Schedule E, line 13 in the field. A custom fieldview is available.


If you retrieve depreciation expense using tax code 520 or manually enter it in this field, ExacTax uses this data rather than the amount it calculates on Form 4562.

Note: ExacTax does not separately allocate an amount in this field to beneficiaries. The entire amount is included with the net gain or loss calculated for this activity.

Depletion (Force)

Enter an amount if you want to override the calculated depletion from the ExacTax/Oil & Gas module. If you are not using the ExacTax/Oil & Gas module, and are entering a working interest directly on Form Rent, enter the depletion amount in this field.

ExacTax does not calculate any limitations or tax preferences based on data entry in this field. ExacTax allocates this amount to beneficiaries based on the percentages entered in the Depletion field in View > Beneficiary Information > Federal > Other Allocations. The remaining amount prints on Schedule E, line 18.

Note: You can use tax code 580 to retrieve depletion.

Other expenses



119

(1 = Entire disposition, 2 = Entire disposition of passive activity sold on installment basis)

Income

State Example:75.00 CA25.00 AZ

StateMUST complete when more than

1 state in the return.(Required for state processing)

12

Unrecaptured 1250 gain(for AMT see Form INC) [§ 38]

Net long-term capital gain/loss . . . . . . . . . . . . . . . . . . . . . . . . .

[§ 28] Interest income (Enter state tax-exempt)

Other income/loss:

State, if differentFederal

K1

6FK1 01 11/07/16

1065 & 1120S Pass-Through General and Income

Activity unit number . . . . . . . . . . . . . . .Name of entity (Mandatory) (35)

Type of entity . . . . . . . . . . . . . . .

[1][3]

[15]

FIDUCIARY

Employer identification number [2]

State . . . . [6]

[18]Disposition of activity . . . . . . . . . . . .

1065 1120SBox 1 Box 1

2 2

Federal State, if different[20]Ordinary income/loss from trade or business . . . . . . . . . . . . . . .[22]Net income/loss from rental real estate . . . . . . . . . . . . . . . . . . .[24]

[21]

Net income/loss from other rental activities . . . . . . . . . . . . . . . .[26]Guaranteed payments to partner . . . . . . . . . . . . . . . . . . . . . . . .

3 3

4

F/S TypeCode* Interest Income ST

Use**#Box 5 Box 4

F/S TypeCode† Ordinary Dividends Qualified Dividends Total Cap Gains 1202 Exclusion 28%#

Box 5Box 6 [§ 29] Dividends

In-State Muni $ or % Postal CodeIn-State Source $ or %

Section 1250

Box 7 Box 6 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[37]

Net short-term capital gain/loss . . . . . . . . . . . . . . . . . . . . . . . . .8 7

9A 8A

[31]

28% rate gain/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9B 8B

[49][51]

9C 8C

[39]

Code Description Amount

Other portfolio income/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net section 1231 gain/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 9

[30]

[48]

Reported on Schedule E . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Reported on Form 1041, line 8 . . . . . . . . . . . . . . . . . . . . . . . .

[50]

[32]

[52]

Form 4797 ordinary gain/loss . . . . . . . . . . . . . . . . . . . . . . . . .

11F 10E

(cont.)

- See K1-2 -

12

12

STUse††

Address (35) . . . . . . . . . . . . . . . . . . . [7]City (20), state, zip code . . . . . . . . . . [8]

* Type codeBlank = Taxable interest (Default)3 = Nominee distribution4 = Accrued interest5 = Original Issue Discount (OID) adjustment6 = Amortizable Bond Premium (ABP) adjustment

**State use code1 = Bank, credit union, S & L: KS, MA, ND2 = Taxable: TN4 = Subject to Intangibles: KS5 = Corporate Interest: MA6 = A/R-Intangibles: KS

†† State use code2 = Taxable: TN4 = Subject to intangibles: KS6 = Qualified domestic dividends: ND

†Type codeBlank = Other (Default)3 = Nominee distribution

U.S. Ob / In-State Muni % / In-State Source %: Format xxx.xxx

9 = Qualified high technology business: HI10 = Business: AZ, GA, IL, KS, MA, ME, MS, NE, NY, OK, RI, SC, WV12 = Common Trust Fund: MA13 = Common Trust Fund, business: MA

7 = N/R-Intangibles: KS8 = Bonds, debentures, certificates of indebtedness: KS9 = Airport Bonds: ME

10 = Business: AZ, GA, IL, KS, MA, ME, MS, NE, NY, OK, RI, SC, WV12 = Common Trust Fund: MA13 = Common Trust Fund, business: MA

[46]

1256 contracts and straddles . . . . . . . . . . . . . . . . . . . . . . . . . . .

[47]

11A 10A

11C 10C

33A

33A2016

ExacTax, Inc.

2[§ 19] Multi-state allocation % (xxx.xx)#

1#!

% (xxx.xx)

(1 = Partnership, 2 = S Corp, 3 = Foreign partnership, 4 = Publicly traded partnership, 5 = Farm partnership)

Long-term loss trade / business. . . . . . . . . . . . . . . . . . . . . . .

[41]

11B 10B

[42] [43]

11B 10B

[44] [45]

11B 10BLong-term loss income producing. . . . . . . . . . . . . . . . . . . . . .Long-term gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax Exempt Private Act Bond

U.S. Ob $ or %

Tax Exempt

Private Act Bond PF

Involuntary conversions:

[9] [10]

PostalCode

[53]

†††

††† 1202 Exclusion code1 = 50% Exclusion2 = 60% Exclusion3 = 75% Exclusion4 = 100% Exclusion

In-State Muni $ or % In-State Source $ or % PFU.S. Ob $ or %

1202 Code

1250 Code: 1 = Form 4797 (default), 2 = Trust, RIC, REIT, 3 = Sale partnership interest

[40]

Net business capital gain/loss: Short-term . . . . . . . . . . . . . . . . .11F 10E

11F 10E

11F 10E

[54] [55][56] [57][58]

Net business capital gain/loss: Long-term . . . . . . . . . . . . . . . . .28% rate gain/loss (Business) . . . . . . . . . . . . . . . . . . . . . . . . . . .

[61][62]

Self charged interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11F 10E

11F 10E

11F 10E

[59][60]

Section 1202 gain (Qualified small business stock) . . . . . . . . . . . . .[63]

Section 751 information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[23][25]

[33][35][34]

[36]

[66][68]

[64][67]

[11] [12][13] [14]

Foreign country code/county . . . . . .Foreign province/county . . . . . . . . . Foreign postal code

Overflow #

City/state use code. . . . . . . . . . . . . [16] (NYC = New York City, YON = Yonkers, 10A = Ohio 10 Acre Farm)

[27]

[65]

Name of activity . . . . . . . . . . . . . . . . [4]

(Oil & Gas Module depletion only)[17]Include depletion on Sch E, Page 1 . .


120

Form [33A] - 1065 and 1120S Pass-Through General and Income

Overview

Use this form to enter the client's Schedule K-1 data from an S Corporation or a partnership. This information transfers to the related 1041 forms and schedules.

Form arrangement

On the left side of each field in the Income section on Form K1, ExacTax includes the Forms 1065 and 1120S, Schedule K-1 line reference numbers, if applicable. The line reference number indicates where on this form you should enter each Schedule K-1 item.

General Information

Unit

ExacTax automatically enters the next available number. Override this number if necessary, but do not leave the field blank. ExacTax uses this information to gather and to coordinate information for the activity unit. For example, the activity unit number enables ExacTax to link information (such as income or loss, sales, credits, and assets detail) for the passive calculations.

Name of entity

ExacTax uses the entity name you enter in this field as the unit description for the state allocation spreadsheet and for the description in the folders block.

Name of activity

Enter a unique activity name for this unit. ExacTax/1041 prints the activity name after the entity name on various forms, worksheets, and statements to help identify this unit from another unit with the same entity name.

State


Entity: Type

Enter the appropriate entity code or use the fieldview to make the selection. ExacTax uses this code to indicate the type of activity on Schedule E, Page 2. If a code is not entered, ExacTax uses code 1 (partnership) as the default.

Note: Code 4 for publicly traded partnerships determines the tax treatment of the entity. This code supersedes the passive activity code entered on Form K1-3. If you enter code 5, ExacTax does not allow an overall loss on the AMT version of Form 8582.

City or state use code

Enter the three-character code for the activity. Only the New York and Ohio applications use this code.


121

Notes

For New York returns, enter YON to identify the information as derived from sources within the City of Yonkers. For nonresident or part-year resident returns, ExacTax uses this information to complete Form Y-206, City of Yonkers Nonresident Fiduciary Earning Tax Return.

For New York returns, enter NYC or YON to identify the information as derived from city sources for Form IT-205-A, Schedule 4 for the calculation of full-year or part-year resident city taxes.

For Ohio returns, enter 10A to identify that the farm is over 10 acres in size.

Include depletion on Schedule E, Page 1

Enter X if the depletion expense calculated in the ExacTax/Oil & Gas module for the activity should be reported on Schedule E, Page 1. If this field is blank, ExacTax transfers the depletion expense to Schedule E, Page 2.


Enter 1 to delete this activity on next year's proforma. This option also releases all suspended losses if this was a passive activity. Enter 2 if this is a passive activity the client is selling on an installment basis. ExacTax treats the disposition as follows:

If this is a passive activity with passive loss carryovers, ExacTax does not delete the activity for proforma purposes and allows losses based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year.

If this is a passive activity with no passive carryovers, ExacTax does not proforma this form or any other forms related to this activity, but proformas the related Forms Sale and/or InstPY to next year's Form InstPY.


Income

Enter information in the fields provided using the Income section of the client's Schedule K-1.

Ordinary business income or (loss)

Enter the ordinary income or loss from the activity. ExacTax uses this information with the entry in Passive activity code field on Form K1-3 to determine the income or loss to report on Schedule E, Page 2. If the passive activity code is 3, the ordinary income or loss is considered nonpassive income or loss. If the passive activity code is 1 or 2, the income or loss is considered a passive activity for Schedule E, Page 2.

Net rental real estate income or (loss)

Enter the net income or loss from other real estate activities. ExacTax uses this information to determine the passive income or loss to report on Schedule E, Page 2.

Other net income or (loss)

Enter the net income or loss from other rental activities. ExacTax uses this information to determine the income or loss to report on Schedule E, Page 2. Amounts entered in this field are treated as passive. ExacTax ignores the entry in the Passive activity code field on Form K1-3.


122

Guaranteed payments to partner

ExacTax classifies guaranteed payments as nonpassive income and enters them in Schedule E, Part II, column (k) along with other nonpassive income. ExacTax ignores the entry in the Passive activity code field on Form K1-3.

Interest income

If no special types of interest income exist and source percentages are not needed for state processing, enter the amount in this field. ExacTax treats any amount entered on the input form as fully taxable. The following information describes how entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal application disregards entries coded S. Enter F in the F/S field if the item is applicable only to the federal return.


If an item of interest income requires an adjustment, enter the total amount received on one line, then enter the adjustment amount on a separate line in the same column with type code 3, 4, 5, or 6. Enter the adjustment as a positive amount.






When processing two or more state returns, make duplicate line entries for those interest items for which you must enter different information for each state. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state. Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal application disregards the state-only entries.




123


Notes







InState Source ($ or %): Make an entry if any portion of the interest item is in-state source income for the integrated state or the state indicated in the Postal Code field. Leave this field blank if none of the Interest Amount is in-state source income. ExacTax disregards an InState Source ($ or %) entry for items entered in the Tax Exempt field.

Notes





Dividends

If special types of dividend income do not exist and source percentages are not needed for state processing, enter the amount in this field. The following information describes how entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are processing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In


124

the F/S field, enter S for all but one of the duplicate line entries. The federal application disregards entries coded S. Enter F in the F/S field if the item is applicable only to the federal return.

Type Code: Enter a code to indicate that the income item is a nominee adjustment amount.

If an item of dividend income requires a nominee adjustment, enter the total amount received on one line, then enter the nominee amount on a separate line in the same column with type code 3. Enter the nominee adjustment as a positive amount.


Ordinary Dividend: Enter ordinary dividend amounts to complete the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227. Do not enter tax-exempt dividends in this field.


Total Cap Gain Dist: Enter total capital gain distribution amounts from Form 1099-DIV or similar statements to complete Schedule D, line 9, column (f).


1202: Section 1202 gains may or may not qualify for the exclusion depending on the shareholder's holding period. Enter 100 percent of section 1202 gains and if they qualify for the exclusion, enter a code in the 1202 Code field.



Tax Exempt: Enter total tax-exempt dividend amounts, including dividend income attributable to private activity bonds issued after 8/7/86. Do not enter tax-exempt dividends in the Ordinary Dividend or Qualified Dividend field.



Make duplicate line entries for those dividend items for which you must enter different information for each state when processing two or more state returns. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state.

Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal application disregards the state-only entries.



125

State Use: The codes available in this field are specific to the state code entered in the Postal Code field. If a state postal code was not entered, or if state codes are not applicable to the state postal code entered, the field is disabled. Enter a code, if applicable, for special processing on an ExacTax/1041 state return.

US Govt Oblig ($ or %): Make an entry if any portion of the dividend income is attributable to U.S. government obligations (nontaxable to the state). Note that this field is applicable only for dividend items entered in the Ordinary Dividend field. ExacTax disregards a US Govt Oblig % entry for items entered in the Tax Exempt field.

Notes





InState Muni ($ or %): For state processing, make an entry to indicate the portion of the amount entered in the Tax Exempt field that is nontaxable to the integrated state or the state indicated in the Postal Code field. Note that this field is applicable only for dividend items entered in the Tax Exempt field. ExacTax disregards an InState Muni ($ or %) entry for items entered in the Ordinary Dividend field.



Notes







126

Royalties

Enter royalty income reported on Schedule K-1. Each royalty activity is listed separately on Schedule E, Page 1.

Net portfolio short-term / long-term capital gain or (loss)

Enter the portfolio capital gains or losses reported on Schedule K-1. For capital gains that are not portfolio, use the Net business short-term / long-term capital gain / loss fields. For sales of partnership interest on shareholder stock, enter the information on Form Income in the field for the Capital gains or (losses) field instead of this form. Enter those sales as business (code B in the Type field) and associate with this activity using the Form and Unit fields. Do not enter information in both forms. Gains and losses entered on Form Income in the field that are not coded B for business will be treated as portfolio, not passive.

28% rate gain / loss

Enter the 28-percent rate gain as reported on Schedule K-1. ExacTax/1041 reports the amounts on the Schedule D 28% Rate Gain Worksheet.

Note: This amount represents a portion of the net long-term capital gain amount subject to the 28-percent rate. You must enter an amount in both this field and the field for the long-term capital gain amount to calculate the transaction.

Unrecaptured 1250 gain

Enter the amount of unrecaptured section 1250 gain reported on Schedule K-1. If any part of the amount is reported as unrecaptured section 1250 gain from an estate, trust, REIT, or RIC or from the sale of a partnership interest, enter the amounts in the field and use the fieldview in the Code field to direct the amount to the appropriate line of the Unrecaptured Section 1250 Gain Worksheet.

Net section 1231 gain or (loss)

The amount entered transfers to Form 4797, Part I and is subject to passive loss limitations if applicable.

Other portfolio income or (loss)

The amount entered transfers to the Other income line on Form 1041, 1041-QFT, 1040NR, or 5227.

1256 contracts and straddles

The amount entered transfers to Form 6781, Part I.

Other income or (loss): Reported on Schedule E

ExacTax adds the amounts entered to the amounts in the Ordinary income / loss from trade or business, Net income / loss from rental real estate, and Net income / loss from other rental activities fields, and the passive depletion calculated by the ExacTax/Oil & Gas module, and uses them to determine the income or loss to report on Schedule E, Page 2. These amounts are subject to passive loss limitations if applicable.

Net business short-term / long-term capital gain or (loss)

Enter the business capital gain / loss as reported on Schedule K-1. These amounts are subject to passive activity loss limitations, if applicable.


127

Collectibles (28%) capital gain or (loss)

Enter the 28-percent rate gain as reported on Schedule K-1. ExacTax/1041 reports the amounts on the Schedule D 28% Rate Gain Worksheet.

Note: This amount represents a portion of the net long-term capital gain amount subject to the 28-percent rate. You must enter an amount in both this field and the field for the long-term capital gain amount to calculate the transaction.

Self charged interest

Enter the amount of self-charged interest from the partnership or S Corporation. ExacTax includes this amount in passive income for purposes of calculating passive losses allowed. Enter the related interest income as normal.

Section 751 information

Use the field to enter information for disproportionate distributions from a partnership holding and the sale or exchange of interest in a partnership. If entered, required statements print with Schedule E to satisfy IRS regulations.


128

1120S

12

1065Box Box

Deductions

K1-2 1065 & 1120S Pass-Through Deductions and Self-Employment

6FK1-2 01 11/17/16 FIDUCIARY

11

Federal State, if different

[7]Section 179 expense deduction (grantor trust only) . . . . . . . . . . . .

Activity unit number . . . . . . . .

Name of entity (35) . . . . . . . . .

State postal code . . . . . . . . . . . .

Deductions related to portfolio income:13K 12K Subject to 2% of AGI limitation . . . . . . . . . . . . . . . . . . . . . . . .

[16]

13L 12L Not subject to 2% AGI limitation . . . . . . . . . . . . . . . . . . . . . . .

[33]

13H 12H

[13]Investment interest expense (Form 4952). . . . . . . . . . . . . . . . . .

[17]

Investment interest expense (Schedule E) . . . . . . . . . . . . . . . . .

[56]

[51]

[44]

[35]

Schedule E depletion expense:

[37]

Page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Beneficiary share of depreciation, excluded on Sch E . .

13I 12I Royalty expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13W 12S Penalty for early withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . .13W 12S Other deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[41]

[10][12]

[22]

13A-G 12A-G [9]Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33B

33B2016

ExacTax, Inc.

[18][19]13J 12J Section 59(e)(2) expenditures . . . . . . . . . . . . . . . . . . . . . . . . . .

13W 12S Form 4684 short-term loss income producing . . . . . . . . . . . . . .Real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11]

[23][21]

[8]

[39]

[43]

[34]

[36]

[38]

[40]

[45][46]

[52]

Gross receipts, oil-related activities. . . . . . . . . . . . . . . . . . . . .Gross receipts, all activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

Domestic production activities information (Form 8903):13T 12P

Allocable cost of goods sold, oil-related activities . . . . . . . . . .Allocable cost of goods sold, all activities . . . . . . . . . . . . . . . .Directly allocable deductions, oil-related activities . . . . . . . . .Directly allocable deductions, all activities . . . . . . . . . . . . . . . .Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Deductions from cooperatives . . . . . . . . . . . . . . . . . . . . . . .

[31]

Qualified production income, oil-related activities. . . . . . . . . .Qualified production income, all activities . . . . . . . . . . . . . . . .

13U 12Q

13V 12R

[32]

Employer's Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . .[42]

[47][48]

[54] [55][57]

[15]Debt financed acquisition interest . . . . . . . . . . . . . . . . . . . . . . . .[14]

[24][25]Preproductive period expenses . . . . . . . . . . . . . . . . . . . . . . . . . [26][27]Preproductive period expenses expensed . . . . . . . . . . . . . . . [28][29]Reforestation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . .[49]

[50]

13P 12M

13S 12O

[20]

[30]

[53]


129

Form [33B] - 1065 and 1120S Pass-Through Deductions and Self-Employment

Overview

Use this form to enter additional information from an S Corporation or a partnership. This information transfers to the related 1041 forms and schedules.

Form arrangement

On the left side of each field on Form K1-2, ExacTax includes the Forms 1065 and 1120S Schedule K-1 line reference numbers, if applicable. The line reference number indicates where on this form you should enter each Schedule K-1 item.

Deductions

Enter information from the Deductions section of the client's Schedule K-1.

Unit / Name

ExacTax transfers information from Form K1 to these fields. You can modify the information in these fields only by changing data on Form K1.

Section 179 expense deduction

Enter the section 179 expense deduction from the client’s Schedule K-1. This amount prints on the Grantor / Agency Report.

Charitable contributions

Enter the charitable contributions from the client’s Schedule K-1.

Investment interest expense (Form 4952)

Enter investment interest expense for this activity so that the expense is reported on Form 4952 and deducted on Form 1041, 1041-QFT, 1040NR, or 5227.

Investment interest expense (Schedule E)

Enter investment interest expense to transfer directly to Schedule E and subject to passive loss limitations, if applicable.

Royalty expenses

Enter the expenses attributable to this activity’s royalty income. This amount transfers to the Other expenses field on Schedule E, Page 1, line 19.

Deductions related to portfolio income: Subject to 2% of AGI limitation

Enter the deductions attributable to this activity’s portfolio income. ExacTax allocates this amount as a direct deduction against the portfolio income of this activity on the Partnership / S Corporation Worksheet. To allocate this amount as an indirect expense against all income in the return, enter the deduction on Form Deduct in the Deductions folder rather than in this field.


130

Deductions related to portfolio income: Not subject to 2% of AGI limitation

Enter the deductions attributable to this activity’s portfolio income. ExacTax allocates this amount as a direct deduction against the portfolio income of this activity on the Partnership / S Corporation Worksheet. To allocate this amount as an indirect expense against all income in the return, enter the deduction on Form Deduct in the Deductions folder rather than in this field.

Other deductions

Enter other deductions for this entity. ExacTax uses this information to determine the income or loss to report on Schedule E, Page 2.

Penalty for early withdrawal

Enter the penalty for early withdrawal for this activity. This amount transfers to the applicable other deduction line on Form 1041, 1041-QFT, 1040NR, or 5227.

Depreciation adjustment

Enter depreciation adjustments from the Other expenses line of Schedule K-1. ExacTax uses this information to determine the income or loss to report on Schedule E, Page 2. Enter the beneficiary portion of this amount in the Beneficiary share, excluded on Schedule E field on this form. If you enter the amount in both fields, the entire expense is deducted on Schedule K-1 rather than on Schedule E, Page 2.

Beneficiary share, excluded on Schedule E

Enter only the beneficiary portion of depreciation deductions attributable to this activity’s portfolio income. ExacTax/1041 transfers these amounts to the beneficiaries’ Schedules K-1 proportionally based on depreciation percentages entered in View > Beneficiary Information > Federal tab > Other Allocations and adjusts income reported on Schedule E, Page 2 by this amount.

Enter any section 754 or other depreciation adjustment from Schedule K-1 (Form 1065), line 11 in the Depreciation adjustment field on this form. The amount entered should include the beneficiary portion.

Schedule E depletion expense: Page 1

Enter any depletion deduction attributable to this activity’s royalty income not entered in the ExacTax/Oil & Gas module. ExacTax/1041 transfers the beneficiaries’ shares of this amount to Schedule K-1, box 9, code B based on depletion percentages entered in View > Beneficiary Information > Federal tab > Other Allocations and prints the remaining portion on Schedule E, Page 1, line 18.

Schedule E depletion expense: Page 2

Enter any depletion deduction attributable to this activity’s portfolio income not entered in the ExacTax/Oil & Gas module. ExacTax/1041 transfers the beneficiaries’ shares of this amount to Schedule K-1, box 9 based on depletion percentages entered in View > Beneficiary Information > Federal tab > Other Allocations and adjusts the income on Schedule E, Page 2, line 28 by the remaining portion.


131

2 = Taxable: TN4 = Subject to intangibles: FL, KS6 = Qualified domestic dividends: ND9 = Qualified high technology bus: HI

Final Year Deductions

Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal

K1T 1041 Pass-Through General, Income, Deductions, Final Year

6FK1T 01 11/29/16 FIDUCIARY

Box 3

[35]

[37]

Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4a

[38]

4c Unrecaptured 1250 gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% rate items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4b

[20]

Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

[22][21]

Ordinary business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[23]

Net rental real estate income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

[24][26]

8

[25]

Other rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Directly apportioned deductions:

[27]

9A

[28][30]

[29]

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[32][31]

[34][33]

Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[36]Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

State, if different

6

Blank = Taxable interest (Default)3 = Nominee distribution4 = Accrued interest5 = Original Issue Discount (OID) adjustment6 = Amortizable Bond Premium (ABP) adjustment

* Interest Type code

† Dividend Type code

1 = Bank, credit union, S & L: KS, MA, ND2 = Taxable: TN4 = Subject to Intangibles: KS5 = Corp, Int, MA6 = A/R-Intangibles: KS7 = N/R-Intangibles: KS8 = Bonds, debentures, certificates of indebtedness: KS

9 = Airport Bonds: ME10 = Business:AZ, GA, IL, KS, MA, ME, MS, NE, NY, OK, RI,SC, WV12 = Common trust fund: MA13 = Common trust fund, business: MA

10 = Business: AZ, GA, IL, KS, MA, ME, MS,NE, NY, OK, RI, SC, WV

12 = Common trust fund: MA13 = Common trust fund, business: MA

36A

36APage # 2016

ExacTax, Inc.

Estate tax deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Box

11A


Excess deductions on termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11B Short-term capital loss carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11C Long-term capital loss carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11D Net operating loss carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11E NOL carryover for AMT purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1 = Entire disposition, 2 = Entire disposition of passive activity sold on installment basis)

State Example:75.00 CA25.00 AZ

StateMUST complete when more than 1

state in the return.

(Required for state processing)

Activity unit number . . . . . . . . . . . .

Name of entity (Mandatory) (35)

[1]

[3]

Employer identification number [2]

Type (1 = Trust, 2 = Estate)(State use only)

[14]

State postal code . . . . . . . . . . . [5]

Disposition of activity. . . . . . . . . . . [16]

Entity:

Address (35) . . . . . . . . . . . . . . . . . [6]

City (20), state, zip code . . . . . . . . [7]

Allocable to corpus . . . . (xxx.xxxx) [4]

[8]

3[§ 17] Multi-state allocation % (xxx.xx)#

1#

!

% (xxx.xx)

42

Blank = Other (Default)3 = Nominee distribution

** State use code †† State use code

[§ 18] Interest (Enter state tax-exempt)

F/S TypeCode* Interest Income ST

Use**PostalCode#

Box 1

F/S TypeCode† Ordinary Dividends Qualified Dividends Total Cap Gains 1202 Exclusion 28%#

Box 2 [§ 19] Dividends

PostalCode

STUse††

Section 1250

(cont.)

12

12

U.S. Ob / In-State Muni % / In-State Source %: Format xxx.xxx

Tax Exempt Prt Act Bonds PF

Tax Exempt

Prt Act Bonds PF

[47][45]

[49]

[46][48]

[9]

** 1202 Type code1 = 50% Exclusion2 = 60% Exclusion (Empowerment Zone)

[39]

[50]

1202 Code**

In-State Source$Amount or %

(xxx.xxx)US Obligation

$ Amount or % (xxx.xxx)In-State Muni

$ Amount or % (xxx.xxx)

US Obligation$ Amount or % (xxx.xxx)

In-State MUni$ Amount or % (xxx.xxx)

In-State Source$Amount or % (xxx.xxx)

12

3 = 75% Exclusion

9B

9C [41][42][40]

[43]

[51][53]

[52][54]

4 = 100% Exclusion

Foreign country code / name . . . .[10] [11]

Foreign province / county. . . . . . .[12] Foreign postal code [13]


132

Form [36A] - 1041 Pass-Through General, Income, Deductions, Final Year

Overview

Use this form to enter the client's Form 1041, Schedule K-1 data. The information you enter transfers to the related forms and schedules.

Form arrangement

On the left side of each field in the Income and Deductions and Final Year Deductions sections on Form K1T, ExacTax includes the Form 1041, Schedule K-1 line reference number. The line reference number indicates where on this form you should enter each Schedule K-1 item.

General Information

Unit

ExacTax automatically enters the next available number. Override this number if necessary, but do not leave the field blank. ExacTax uses this information to gather and to coordinate information for the business unit activity. For example, this data enables ExacTax to link information (such as income or loss, sales, credits, and assets detail) for the passive calculations.

Name

ExacTax uses the entity name you enter in this field as the unit description for the state allocation spreadsheet and for the description in the folders block.

Corpus


State

If you process a state return and the income for this activity is considered source income for that state, enter a postal code for proper state processing. If you leave this field blank, none of the income for this activity will be considered source income for that state.

Entity: Type

Enter the type of entity or use the fieldview to make the selection. This information does not appear on the federal 1041 return; the information is for state use only.

Include depletion expense with nonpassive income

Enter X if the depletion expense calculated in the ExacTax/Oil & Gas module for the activity should be treated as nonpassive on Schedule E, Page 2, Part III. If this field is blank, ExacTax treats the depletion expense as passive on Schedule E, Page 2, Part III.


Enter 1 to delete this activity on next year's proforma. This option also releases all suspended losses if this was a passive activity. Enter 2 if this is a passive activity selling on an installment basis. ExacTax treats the disposition as follows:


133

If this is a passive activity with passive loss carryovers, ExacTax does not delete the activity for proforma purposes, and allows losses, based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year.

If this is a passive activity with no passive carryovers, ExacTax does not proforma this form or any other forms related to this activity.

Sale and/or InstPY to next year's Form InstPY.


Income and Deductions

Use this section to enter information from the client's Schedule K-1, boxes 1 through 10.

Interest income

If no special types of interest income exist and source percentages are not needed for state processing, enter the amount in this field. ExacTax treats any amount entered in the input form as fully taxable. The following information describes how the entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter F in the F/S field if the item is only applicable to the federal return.


If an item of interest income requires an adjustment, enter the total amount received on one line, then enter the adjustment amount on a separate line in the same column with type code 3, 4, 5, or 6. Enter the adjustment as a positive amount.






When processing two or more state returns, make duplicate line entries for those interest items for which you must enter different information for each state. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state. Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal product disregards the state-only entries.


134




Notes







InState Source ($ or %): Make an entry if any portion of the interest item is in-state source income for the integrated state or the state indicated in the Postal Code field. Leave this field blank if none of the Interest Amount is in-state source income. ExacTax disregards an InState Source ($ or %) entry for items entered in the Tax Exempt field.

Notes





Dividends


135

If special types of dividend income do not exist and source percentages are not needed for state processing, enter the amount in this field. The following information describes how the entries in the field affect the calculation of the federal and state tax returns.

F/S: Use this field only if you are processing multiple-state tax returns. For multiple-state tax returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of the duplicate line entries. The federal product disregards entries coded S. Enter F in the F/S field if the item is only applicable to the federal return.

Type Code: Enter a code to indicate that the income item is a nominee adjustment amount.

If an item of dividend income requires a nominee adjustment, enter the total amount received on one line, then enter the nominee amount on a separate line in the same column with type code 3. Enter the nominee adjustment as a positive amount.


Ordinary Dividend: Enter ordinary dividend amounts to complete the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227. Do not enter tax-exempt dividends in this field.


Total Cap Gain Dist: Enter total capital gain distribution amounts from Form 1099-DIV or similar statements to complete Schedule D, line 13, column (h).


1202: Section 1202 gains may or may not qualify for the exclusion depending on the shareholders holding period. Enter 100-percent of section 1202 gains and, if they qualify for the exclusion, enter a code in the 1202 Code field.



Tax Exempt: Enter total tax-exempt dividend amounts, including dividend income attributable to private activity bonds issued after 8/7/86. Do not enter tax-exempt dividends in the Ordinary Dividend or Qualified Dividend field.



Make duplicate line entries for those dividend items for which you must enter different information for each state when processing two or more state returns. For example, a different InState Muni ($ or %) or InState Source ($ or %) may be required for each state.

Enter a postal code to direct each line entry to a particular state return. When using duplicate line entries, remember to enter S in the F/S field for all but one of the duplicate entries. The federal product disregards the state-only entries.


136



US Govt Oblig ($ or %): Make an entry if any portion of the dividend income is attributable to U.S. government obligations (nontaxable to the state). Note that this field is applicable only for dividend items entered in the Ordinary Dividend field. ExacTax disregards a US Govt Oblig ($ or %) entry for items entered in the Tax Exempt field.

Notes





InState Muni ($ or %): For state processing, make an entry to indicate the portion of the amount entered in the Tax Exempt field that is nontaxable to the integrated state or the state indicated in the Postal Code field. Note that this field is applicable only for dividend items entered in the Tax Exempt field. ExacTax disregards an InState Muni ($ or %) entry for items entered in the Ordinary Dividend field.



Notes







137

Net short-term / long-term capital gain

Enter the capital gains as reported on Schedule K-1 (Form 1041). If the activity has a passive capital gain, enter the information on Form Income in the field for the Capital gain / losses field instead of this form. Enter those sales as business (code B in the Type field) and associate with this activity using the Form and Unit fields. Do not enter information in both forms. Gains and losses entered on Form Income in the field that are not coded B for business will be treated as portfolio, not passive.

Unrecaptured 1250 gain

Enter the amount of unrecaptured section 1250 gain as provided by the reporting Schedule K-1 entity.


Enter the estate tax deduction amount as reported on Schedule K-1 for this entity. The amount entered transfers to the applicable miscellaneous deductions line on Form 1041, 1041-QFT, 1040NR, or 5227.

Note: ExacTax does not allocate an amount entered in this field to beneficiaries. To allocate estate taxes to beneficiaries, enter the amount in the Estate tax deduction field on Form Deduct in the Deductions folder instead of this field.


Use this section to enter information from the client's Schedule K-1, box 11.

Final year deductions

Enter the amounts from Schedule K-1 in the final year of distribution. ExacTax takes the following actions for these items.

Excess deductions on termination: These excess deductions transfer to the applicable miscellaneous deductions line on Form 1041, 1041-QFT, 1040NR, or 5227.

Short-term capital loss carryover: This amount transfers to Schedule D. Enter the carryover as a positive amount.

Long-term capital loss carryover: This amount transfers to Schedule D. Enter the carryover as a positive amount.

Net operating loss carryover: ExacTax includes this amount in the statement provided for the applicable other deductions line on Form 1041, 1041-QFT, 1040NR, or 5227.

NOL carryover for AMT purposes: ExacTax includes this amount in the calculation of the AMT NOL on Schedule I.


138

Alternative Minimum Tax Items

K1T-2 1041 Pass-Through AMT, Credits, Other, Passives

6FK1T-2 01 11/29/16 FIDUCIARY

AMT


Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [47][49][51][53]

[46][48][50][52]

Schedule D - short-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D - long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 4797 - Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D - 28% rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regular

Other Information

Form 4797 - Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CreditsBox

13A


[27]Trust paid federal estimated taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13B

[28]Trust paid state estimated taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [29][30]Credit for backup withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36B

36B2016

ExacTax, Inc.

Box

14G [41]Foreign trading gross receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [42]


[37]Investment income adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [38][39]Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [40]14F

Box

12A


Adjustment for minimum tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AMT adjustment attributable to:Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [9]12B

12C [10]Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12D [12]Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [13]

[14]Unrecaptured section 1250 gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [15]

[11]

12E

12F [16]28% rate gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12G [18]Accelerated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [19]

[20]Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [21]

[17]

12H

12I [22]Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12J [24]Exclusion items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [25]

[23]

Activity unit number . . . . . . . .

Name of entity (35) . . . . . . . .

Allocable to corpus (xxx.xxxx) State postal code . . .

Passive activity code (1 = Other passive activity, 2 = Rental real estate with active participation (estates only), 3 = No limitation applies) [44]

[7][6]

[8]

Aggregation group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[45]

[55][57]

[54][56]

[36]Form W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[35]Qualified production income, all activities . . . . . . . . . . . . . . . . . . . . . . . .

14C [34]Qualified production income, oil-related activities . . . . . . . . . . . . . . . . .

14B Foreign taxes (Use (Form {81B} for input)Domestic production information (Form 8903)

14D

Description (29)# AmountCode ††

PY Passive CarryoverDescription (29)# Current Year CreditCreditForm

Credit recaptures . . . . . . . . . . . . .[§ 32]13R

Credits . . . [§ 31]13C-Q

Credits - See instructions

†

Carryovers:

14H Adjustment for section 1411 net investment income . . . . . . . . . . . . . . . . . . [43]


139

Form [36B] - 1041 Pass-Through AMT, Credits, Other, Passives

Overview

Use this form to enter additional information from an estate or trust. This information transfers to the related 1041 forms and schedules.

Form arrangement

On the left side of each field in the Alternative Minimum Tax Items, Credits, Other Information sections on Form K1T-2, ExacTax includes the Form 1041, Schedule K-1 line reference number. The line reference number indicates where on this form you should enter each Schedule K-1 item.


Use this section to enter alternative minimum tax adjustment information from the client’s Schedule K-1.

Adjustment for minimum tax purposes

Enter the adjustment for minimum tax as reported on Schedule K-1 for this entity. This amount transfers to Schedule I.

Alternative minimum tax adjustment attributable to: Qualified dividends / … / 28% rate gain

Enter the portion of the adjustment for minimum tax related to each Schedule D item. This amount transfers to the Schedule D for AMT Worksheet.

Credits

Use this section to enter estimated tax, backup withholding, credits, and credit recaptures from the client’s Schedule K-1.

Trust paid federal estimated taxes / Trust paid state estimated taxes

Enter the federal and state estimated taxes paid by the trust and reported on Schedule K-1. ExacTax includes the federal amounts on the applicable payments line on Form 1041, 1041-QFT, or 1040NR and the state amounts on the applicable tax deduction line on Form 1041, 1041-QFT, 1040NR, or 5227. For estimated tax purposes, all of these payments are considered to have been made within the tax year. If this is not true, modify your entry to reflect current-year payments only. ExacTax includes the state amounts on the applicable state return, if calculated.

Credit for backup withholding

Enter the withheld taxes reported on Schedule K-1. ExacTax includes this amount on the applicable payments line on Form 1041, 1041-QFT, or 1040NR. Enter any state withholding in the Taxes, not entered elsewhere field on Form Deduct.

Credits

The following describes fields in this field and how to use them for processing the return.

Credit Form: Enter a code to identify the credit or select the code from the fieldview.

Description: ExacTax completes this field based on the entry in the Credit Form field.

Current Year Credit: Enter the total amount of applicable credit reported on Schedule K-1. The Form 8582-CR calculation uses the trust share of the current-year credit to determine the allowed and unallowed amounts for the


140

current year. All the credits may be allocated to beneficiaries on a grantor trust. For a non-grantor trust, the following credits may be allocated between the trust and beneficiaries based on information in the View > Beneficiary Information > Federal tab > Other Allocations section.

Form 3468, Investment

Form 5884, Work Opportunity

Form 6478, Biofuel Producer

Form 6765, Increasing Research Activities

Form 8586, Low-Income Housing

Form 8820, Orphan Drug

Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Form 8844, Empowerment Zone and Renewal Community Employment

Form 8845, Indian Employment

Form 8864, Biodiesel and Renewable Diesel Fuels

Form 8882, Employer-Provided Child Care Facilities and Services

Form 8912, Credit for Holders of Tax Credit Bonds

Form 8932, Employer Differential Wage Payments

Form 8941, Small Employer Health Insurance Premiums

PY Passive Carryover: If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of passive activity credit that was suspended in a prior year due to a limitation on Form 8582-CR. The Form 8582-CR calculation uses this information to determine the allowed and unallowed amounts for the current year.

Credit recaptures

The following describes how to use the fields in this field for processing the return.

Code: Enter a code to identify the credit or select the code from the fieldview.

Description: ExacTax completes this field based on the entry in the Code field.

Amount: Enter the amount of credit recaptures reported on Schedule K-1. The following recaptures may be allocated between the trust and beneficiaries based on information in View > Beneficiary Information > Federal tab > Other Allocations.

Low-income Housing (LIHCR and LIHO)

Indian Employment (IECR)

Employer Provided Child Care Facilities (ECCFR)

Other Information

Investment income adjustment


141

Use this field to adjust the investment income from this entity. ExacTax automatically treats interest, dividends, royalties, portfolio short-term capital gain, and other portfolio income as investment income. Enter positive amounts to increase and negative amounts to decrease the investment income from this entity.

Gross farming or fishing income

ExacTax adds this amount to other gross farming and fishing amounts and reports the amount on Schedule E, Page 2.

Foreign trading gross receipts

ExacTax allocates this amount to beneficiaries based on the percentages entered in the Income distributions fields in the View > Beneficiary Information > Federal tab.


Passive activity code

Enter the appropriate activity type code or use the fieldview to make the selection.

Note: Only estates open for less than two years can use code 2, Rental real estate with active participation.

Aggregation group

If this activity is part of an aggregated group, enter the aggregation group number. ExacTax reports units with the same aggregation number as one item on the statement worksheets for Form 8582. All of the entities in an aggregation must have the same passive code.

Carryovers

If ExacTax was used in the prior year, this information proformas automatically. Otherwise, enter last year’s regular and AMT passive loss carryovers for this activity.

Notes

ExacTax treats blank AMT fields as having no AMT carryover. ExacTax does not use the regular carryovers as a default AMT amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the Regular and AMT fields. ExacTax also uses this information to complete Schedule I and Form 8582, if applicable.

Enter long-term Schedule D amounts net of 28 percent. ExacTax adds the amounts in the 28% rate fields to the amounts in the respective long-term fields. This differs from data entry for gains and losses elsewhere in ExacTax.


142

Farm General and IncomeF (2016)

General Information

Income

Unit

EINDescription

Principal product

Accounting method (1 = Cash, 2 = Accrual)

Material participation in the operation of this business this year (1 = Yes, 2 = No)

Corpus

State

City or state use code (NYC = New York City, YON = Yonkers, 10A = Ohio 10 Acre Farm)

Disposition of activity (1 = Entire disposition, 2 = Entire disposition of a passive activity sold on installment)

Agricultural code / description

Payments were made that require Form(s) 1099 to be filed (1 = Yes, 2 = No)

If yes, all required Form(s) 1099 were or will be filed (1 = Yes, 2 = No)

BeginningCost of products purchasedEnding inventory

Agricultural program:

Reported under electionTotal forfeitedTaxable forfeited

Commodity Credit Corporation loans:

Deferred from prior yearElect to defer to next year

Sale of products raisedCost or other basis of livestock or other items Sale of livestock and other resale items

Crop insurance and federal disaster payments:

Other income (including gas or fuel tax credit or refund)

Taxable proceeds

Cooperative:

Custom hire (machine work) income

Total proceeds

Inventory:

Total distributionsTaxable distributions

Total paymentsTaxable payments

1

2

3

4

5

6

7 8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

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143

Form [37A] - Farm General and Income

Overview

Use this form to enter the Schedule F general farm information and all farm income and deductions if the estate or trust operates a farm.

General Information

Use this section to complete the top part of Schedule F and to classify income and expenses.

Unit

ExacTax automatically enters the next available number. Override this number if necessary but do not leave the field blank. ExacTax uses this information to gather and to coordinate information for the unit activity. For example, the activity unit number enables ExacTax to link information (such as income or loss, sales, credits, and assets detail) for the passive calculations.

Description

ExacTax uses the description you enter in this field as the unit description for depreciation, the state allocation spreadsheet, and for the folders block.

Corpus


State


Agricultural activity code

Enter the agricultural activity code or use the fieldview to make the selection.

Accounting method

Enter the code that represents the method of accounting or use the fieldview to make the selection. If this field is blank, ExacTax defaults to the cash method of accounting.

Material participation in the operation of this business this year

Enter 2 if the trust did not materially participate in this activity. The default is 1 for Yes.

Note: If you enter 2, ExacTax considers this activity passive and automatically defaults to a passive activity code of 1. The passive activity code is entered on Form F-2.

Payments were made that require Form(s) 1099 to be filed

Enter 1 if the trust made payments that require Forms 1099. Enter 2 if the trust did not make payments that require Forms 1099.


144

If yes, all required Form(s) 1099 were or will be filed

Enter 1 if Forms 1099 will be filed. Enter 2 if the trust did not file Forms 1099.

City or state use code

Enter the three-character code for the activity. Only the New York, and Ohio applications use this code.

Notes

For New York returns, enter YON to identify the information as derived from sources within the City of Yonkers. For nonresident or part-year resident returns, ExacTax uses this information to complete Form Y-206, City of Yonkers Nonresident Fiduciary Earning Tax Return.

For New York returns, enter NYC or YON to identify the information as derived from city sources for Form IT-205-A, Schedule 4 for the calculation of full-year or part-year resident city taxes.

For Ohio returns, enter 10A to identify that the farm is over 10 acres in size.


Enter 1 to delete this activity on next year’s proforma. This option also releases all suspended losses if this was a passive activity. Enter 2 if this is a passive activity sold on an installment basis. ExacTax treats the disposition as follows: if this is a passive activity with passive loss carryovers, ExacTax does not delete the activity for proforma purposes, and allows losses based on the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the current year.

If this is a passive activity with no passive carryovers, ExacTax does not proforma this form or any other forms related to this activity but proformas the related Form Sale and/or InstPY to next year’s Form InstPY.


Income

Use this section to enter information for the method of accounting.

Sale of livestock and other resale items

Enter a description and amount of any livestock and other items bought for resale. Amounts transfer to Schedule F, line 1a or line 37 depending on the accounting method selected. A custom fieldview is available in this field.

Crop insurance proceeds and federal disaster payments: Taxable

If you enter an amount in the Crop insurance proceeds and federal disaster payments: Total field, ExacTax automatically enters the same amount in this field. Enter a different amount in this field if desired, including 0 (zero) if applicable.

Note: You may also enter total and taxable crop insurance proceeds for this activity in Form 1099M, located in the Farm folder. You may enter information in this field and in Form 1099M.

Sale of products raised

Enter a description and amount of sales items raised. Amounts transfer to Schedule F, line 2 or line 46 depending on the accounting method selected. A custom fieldview is available in this field.

Cooperative distributions: Total / Taxable


145

If you enter an amount in the Total field, ExacTax automatically enters the same amount in the Taxable field. Enter a different amount in the taxable field, if desired, including 0 (zero) if applicable.

Agricultural program payments: Total / Taxable

If you enter an amount in the Total field, ExacTax automatically enters the same amount in the Taxable field. Enter a different amount in the taxable field, if desired, including 0 (zero) if applicable.

Commodity Credit Corporation loans: Reported under election

Enter a description and amount of any Commodity Credit Corporation loans reported under election. Amounts transfer to Schedule F, line 5a or 40a depending on the accounting method selected. A custom fieldview is available in the field.

Commodity Credit Corporation loans: Total forfeited / Taxable forfeited

If you enter an amount in the Total forfeited field, ExacTax automatically enters the same amount in the Taxable forfeited field. Enter a different amount in the taxable field, if desired, including 0 (zero) if applicable.

Crop insurance proceeds and federal disaster payments: Total

If you enter an amount in the Total field, ExacTax automatically enters the same amount in the Crop insurance proceeds and federal disaster payments: Taxable field. You can enter a different amount in the Taxable field in the Cash Income section, including 0 (zero), if applicable.

Note: You may also enter total and taxable crop insurance proceeds for this activity in Form 1099M, located in the Farm folder. You may enter information in this field and in Form 1099M.

Crop insurance proceeds and federal disaster payments: Elect to defer to next year

When you enter information about the crop insurance deferral, ExacTax enters X in the checkbox on the form and prints the explanation with Schedule F. The explanation proformas to next year.


Enter any other income. Amounts transfer to Schedule F. A custom fieldview is available in the field.

Note: You may also enter other income for this activity in Form 1099M, located in the Farm folder. You may enter information in this field and in Form 1099M.

Beginning inventory

Enter the amount of beginning inventory. ExacTax uses the inventory information entered to complete Schedule F, Part III. If ExacTax/1041 was used in the prior year, the beginning inventory information proformas automatically.

Ending inventory

Enter the amount of ending inventory. ExacTax uses the inventory information entered to complete Schedule F, Part III.


146

Farm Expenses, Other, PassivesF-2 (2016)

Expenses

Other Information


Description

OtherVeterinary, breeding, and medicineUtilitiesTaxesSuppliesStorage and warehousingSeeds and plantsRepairs and maintenance

Pension and profit sharing plansLabor hired, less employment credits

Interest ‐ other

Interest ‐ financial institutionsInsurance (other than health)Gasoline, fuel, and oilFreight and truckingFertilizers and limeFeedEmployee benefit programs other than pension and profit sharingDepreciation (Force)Custom hire (machine work)Conservation expensesChemicalsCar and truck expenses

Regular AMT

Unit

Corpus

State

Carryovers:

Passive activity code (1 = Other passive activity, 3 = No limitation applies)

Rent or lease ‐ other (land, animals, etc)Rent or lease ‐ vehicles, machinery, and equipment

Form 1098 name and address

Form 1098 explanation

Preproductive period

Form 4797, Part IIForm 4797, Part ISchedule D, 28% rateSchedule D, Long‐termSchedule D, Short‐termOperating

Aggregation group


Preference itemsReceived a subsidy in current year

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

37

38

39 40

41 42

43 44

45 46

47 48

49 50

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147

Form [37B] - Farm Expenses, Other, Passives

Overview

Use this form to enter expenses, at risk, and passive carryover information if the estate or trust operates a farm.

Expenses

Use this section to enter all farm expenses.

Identification information

ExacTax transfers information from Form F to complete this section. You can modify the information in this section only by making changes on Form F.

Conservation expenses

Any positive amount you enter is limited to 25 percent of the gross farm income. If you enter a negative number, ExacTax converts the number to a positive number and does not limit that amount.

Note: If electronically filing this return, IRS Publication 5078 does not accept conservation expenses entered in Schedule F. When conservation expenses are present, the return must be filed on paper.


If you retrieve depreciation expense using tax code 616 or manually enter it in this field, ExacTax uses this data rather than the amount it calculates on Form 4562.

Note: ExacTax does not separately allocate an amount in this field to beneficiaries. The entire amount is included with the net gain or loss calculated for this activity.

Other


Preproductive period

Enter the preproductive period expenses being capitalized. The amount prints as a negative number in the other expenses with the description 263A.

Other Information

Use this section to enter at risk, subsidy, and preference information.


Enter the amount of the investment at risk. If this field is blank, ExacTax assumes 100 percent of the investment is at risk. If applicable, ExacTax limits the amount of loss for the current unit to the amount you enter.

Note: Form 6198 is available in ExacTax/1041 as a non-calculating form.

Received a subsidy in current year

Mark this field to indicate Yes on the bottom on of Schedule F, Page 1. ExacTax defaults to No if this field is blank.


148

Preference items

Use the field to enter the alternative minimum tax preference amounts. ExacTax uses this information to complete Schedule I.


Enter the appropriate passive activity code. ExacTax treats entities coded 1 as passive and entities coded 3 as nonpassive. If you enter passive carryovers for entities coded 3, ExacTax considers those entities to be former passive activities. Income and losses are considered passive or active as follows:

If the current-year net income is less than the prior-year suspended losses, ExacTax reports both prior-year suspended losses and current-year net income on Form 8582.

If the current-year net income is equal to or greater than the prior-year suspended losses, neither amount is reported on Form 8582.

If there is a current-year net loss, only the prior-year suspended losses are reported on Form 8582.

Aggregation group

If this activity is part of an aggregated group, enter the aggregation group number. Units with the same aggregation number are reported as one item on the statement worksheets for Form 8582. All of the entities in an aggregation must have the same passive code.

Carryovers

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter last year’s regular and AMT passive loss carryovers for this activity.

Notes

ExacTax treats blank AMT fields as having no AMT carryover. ExacTax does not use the regular carryovers as a default AMT amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the Regular and AMT fields. ExacTax also uses this information to complete Schedule I and Form 8582, if applicable.

Enter long-term Schedule D amounts net of 28 percent. ExacTax adds the amounts in the 28% rate fields to the amounts in the respective long-term fields. This differs from data entry for gains and losses elsewhere in ExacTax


149

Form 5227 and 15 Year CarryoversCO (2016)

Form 5227, Part II - Accumulation Schedule

Form 5227 Undistributed Schedule K-1 Amount

15 Year NOL Carryover Items

Net Operating Loss AMT NOL

Interest incomeUS interest

QualifiedOther ordinaryUS

OtherBusiness

Short‐term28% 25% 15%

Tax‐exempt income

Alternative minimum tax adjustment

20122013

20012002200320042005200620072008200920102011

Other rentalRental real estate

20142015

Other nontaxable income

AMT NOLNet Operating Loss

Dividends:

Income:

Capital gains or (losses):

Other ESBT

ExcludedInvestment

1 2

3 4

5 6

7 8

9 10

11 12

13 14

15 16

17 18

19 20

21 22

23 24

25 26

27

28

29

30 31 32 33

34 35 36 37

38 39 40 41

42 43 44 45

46 47 48 49

50 51 52 53

54 55 56 57

58 59 60 61

62 63 64 65

66 67 68 69

70 71 72 73

74 75 76 77

78 79 80 81

82 83 84 85

86 87 88 89

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150

Form [41A] - Form 5227 and 15 Year Carryovers

Overview

Use this form to enter carryover information relating to Form 5227 and the Net Operating Loss Worksheets.

Form 5227, Part II - Accumulation Schedule

Use this section to enter the income of a section 664 trust that is undistributed from prior years.

Undistributed amounts

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the income of a section 664 trust that remains undistributed from prior tax years. Enter an undistributed loss as a negative amount.

Form 5227 Undistributed Schedule K-1 Amount

Use this section to enter carryovers relating to Schedule K-1.

Alternative minimum tax adjustment

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the alternative minimum tax adjustment related to income that is undistributed from prior tax years. ExacTax uses information entered in this field to calculate Schedule K-1, box 12, code A.

15 Year NOL Carryover Items

Use this section to enter net operating loss carryovers from prior years.

Net Operating Loss carryovers

If the net operating loss amount from any prior year was carried back to an earlier year, enter only the amount available for carryforward. Enter carryforwards already used as negative amounts for the year in which the loss was used. For example, if a net operating loss of $10,000 was generated in 2010, $3,000 of the loss was carried back to prior years, and $4,500 of the remaining amount was used in 2011, enter 7,000 ($10,000 minus $3,000) in the 2010 field and enter -4,500 in the 2011 field.

Notes

If you are amending a return for a carryback from a future year, enter the carryback amounts in the Net operating loss carryback field on Form Deduct and the Alternative minimum tax net operating loss carryback (Force) field on Form AMT.

The AMT amounts for carryovers in this section do not default to the regular tax amounts. The AMT amounts must be entered separately, even if they are the same as the regular tax amounts.


151

Other CarryoversCO-2 (2016)

Capital Losses

Section 1231 Losses

Investment Interest

Form 8801

Other

Alternative minimum tax


ESBT

Regular tax

Regular tax

Minimum tax credit

20152014

2011

20132012

ESBTOther

Other ESBT

Short‐term:

Long‐term:

ESBTOther

Regular taxAlternative minimum tax

1 2

3 4

5 6

7 8

9 10

11 12

13 14

15 16

17 18

19 20

21 22

23 24

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152

Form [41B] - Other Carryovers

Overview

Use this form to enter carryover information relating to Forms 4797, 4952, and 8801, and Schedules D and I.

Capital Losses

Use this section to enter capital loss carryovers from prior years.

Short-Term: Regular tax

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of short-term capital loss carryover from the prior-year Schedule D. If the client is an ESBT with non-S Corporation income, enter the capital loss carryovers from the S Corporation part of the trust in the Electing small business trust (ESBT) field and enter the capital loss carryovers from the remainder of the trust in the Other field.

Notes

If you enter ESBT (Return has only S corporation income) in the Type of entity field on Form 1041, ExacTax completes Schedule D with amounts from the S Corporation. In this case, enter the capital loss carryovers in the Other field.

If the return is for a charitable trust, enter capital loss carryovers as negative undistributed income in the Form 5227, Part II - Accumulation Schedule section on Form CO instead of this form.

If the short-term capital loss carryover for alternative minimum tax (AMT) purposes is different from the short-term capital loss carryover for regular tax purposes, enter the AMT carryover in the Alternative minimum tax fields in this section.

Short-Term: Alternative minimum tax

Enter the AMT short-term capital loss carryover amount if it differs from the regular tax amount. If you enter amounts in these fields, ExacTax includes the difference between this amount and the regular tax amount in the calculation of Schedule I, line 13. If there is a short-term capital loss carryover for regular tax but not for AMT, enter 0 (zero) in this field. If you leave this field blank, ExacTax assumes that there is no difference between the AMT amount and the regular amount.

Long-Term: Regular tax

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of long-term capital loss carryover from the prior-year Schedule D. If the client is an ESBT with non-S Corporation income, enter the capital loss carryovers from the S Corporation part of the trust in the Electing small business trust (ESBT) field and enter the capital loss carryovers from the remainder of the trust in the Other field.

Notes

If you enter ESBT (Return has only S corporation income) in the Type of entity field on Form 1041, ExacTax completes Schedule D with amounts from the S Corporation. In this case, enter the capital loss carryovers in the Other field.

If the return is for a charitable trust, enter capital loss carryovers as negative undistributed income in the Form 5227, Part II - Accumulation Schedule section on Form CO instead of this form.


153

If the long-term capital loss carryover for alternative minimum tax (AMT) purposes is different from the long-term capital loss carryover for regular tax purposes, enter the AMT carryover in the Alternative minimum tax fields in this section.

Long-Term: Alternative minimum tax

Enter the AMT long-term capital loss carryover amount if it differs from the regular tax amount. If you enter amounts in these fields, ExacTax includes the difference between this amount and the regular tax amount in the calculation of Schedule I, line 13. If there is a long-term capital loss carryover for regular tax but not for AMT, enter 0 (zero)in this field. If you leave this field blank, ExacTax assumes that there is no difference between the AMT amount and the regular amount.

Section 1231 Losses

Use this section to enter carryovers relating to Form 4797.

Other / ESBT

If you used ExacTax/1041 in the prior year, this information proformas automatically. Otherwise, enter the section 1231 loss carryover information for the years indicated. If the client is an ESBT with non-S Corporation income, enter the section 1231 loss carryovers from the S Corporation part of the trust in the Electing small business trust (ESBT) fields and enter the section 1231 loss carryovers from the remainder of the trust in the Other fields.

Notes

If you enter ESBT (Return has only S Corporation income) in the Type of entity field on Form 1041, ExacTax completes Form 4797 with information from the S Corporation. In this case, enter the section 1231 carryovers in the Other field.

The section 1231 loss expires in the final year of a return; the loss is not available to pass through to the beneficiaries.

Investment Interest


Regular / Alternative minimum Tax

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of investment interest carryover and investment interest carryover for AMT available from prior years. The AMT amount does not default to the regular amount. The AMT amount must be entered separately, even if the amount is the same as the regular amount.

Note: The investment interest expense carryover expires in the final year of a return; the carryover is not available to pass through to the beneficiaries.

Form 8801


Other / ESBT

If you used ExacTax/1041 in the prior year, this information proformas automatically. Otherwise, enter the amount of last year’s minimum tax credit carryover. If the client is an ESBT with non-S Corporation income, enter the minimum tax credit


154

carryover from the S Corporation part of the trust in the Electing small business trust (ESBT) field and enter the minimum tax credit carryover from the remainder of the trust in the Other field.

Notes

If you enter ESBT (Return has only S Corporation income) in the Type of entity field on Form 1041, ExacTax completes Form 8801 with information from the S Corporation. In this case, enter the section 1231 carryovers in the Other field.

The minimum tax credit carryover expires in the final year of a return; carryover is not available to pass through to the beneficiaries.


155

Foreign Tax Credit CarryoversCO-FTC (2016)

Form 1116 - Income Information

Regular Tax


200720082009201020112012201320142015

Foreign TaxesPaid / Accrued

Maximum CreditAllowable

Unused Tax (+)Or Excess Limit (‐)

2006

Year

Year

2006

Or Excess Limit (‐)Unused Tax (+)

AllowableMaximum Credit

Paid / AccruedForeign Taxes

201520142013201220112010200920082007

Category of income (A = Passive income, B = General limitation income, D = Income re‐sourced by treaty, E = Lump‐sum distribution)

Foreign tax credit carryback to 2016 (Amended returns only)

Do not apply unused foreign tax to 2015

Do not apply unused foreign tax to 2015Foreign tax credit carryback to 2016 (Amended returns only)

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156

Form [41C] - Foreign Tax Credit Carryovers

Overview

Use this form to enter the history of foreign taxes paid and credit allowable to calculate the foreign tax credit carryover for the current year.

Notes

Foreign income on Form 1116 in the same category of income must exist in the current year for the carryover to be included on the return.

The foreign tax credit carryover expires in the final year of a return; the carryover is not available to pass through to the beneficiaries.

Foreign Taxes Paid / Accrued

If you used ExacTax/1041 in the prior year, this information proformas automatically. Otherwise, enter the amount of foreign taxes paid or accrued during the year. Amounts entered in these fields may be used in the supporting statement for Form 1116, line 10 and to print in the first column of the Foreign Tax Credit Carryover Worksheet for the applicable foreign income category.

Maximum Credit Allowable

If you used ExacTax/1041 in the prior year, this information proformas automatically. Otherwise, enter the maximum foreign tax credit allowable under the limit for the year. Amounts entered in these fields may be used in the supporting statement for Form 1116, line 10 and to print in the second column of the Foreign Tax Credit Carryover Worksheet for the applicable foreign income category.

Unused Tax (+) or Excess Limit (-)

If you used ExacTax/1041 in the prior year, this information proformas automatically. Otherwise, enter the unused foreign tax (+) or excess limit (-) for the year. The unused foreign tax in each foreign income category is the amount of foreign taxes paid or accrued less the limit for that category. The excess limit in each foreign income category is the amount by which the limit is greater than the qualified taxes paid or accrued for that category. Refer to the Form 1116 instructions and the IRS Publication 514 for additional details.

Positive (+) amounts entered in these fields may be used in the supporting statement for Form 1116, line 10. Amounts (+ or -) entered in these fields also print in the third column of the Foreign Tax Credit Carryover Worksheet for the applicable foreign income category.

Note: The amounts in the Unused Tax fields should be net of that year’s foreign taxes that were carried back or carried forward to another year. Therefore, the amounts in these fields are not always the difference between the amounts in the Foreign Taxes Paid / Accrued fields and the amounts in the Maximum Credit Allowable fields.

Do not apply unused foreign tax to 2012

If you have unused foreign tax (+) in the current year, ExacTax automatically applies this amount to the prior year up to the amount of the excess limit (-) in that year. The amount applied prints in the fourth column of the Foreign Tax Credit Carryover Worksheet. Enter X if you do not want to apply any unused foreign tax from the current year to the prior year.


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Sale of Business PropertySale (2016)

General Information

Sale Information

Form 4797, Part III - Recapture

Form 6252 - Installment Sales

Form 6252 - Related Party Installment Sale Information

Property sold was a marketable security (1 = Yes, 2 = No)Date of second saleSpecial condition if applicable (1 = Sale or exchange, 2 = Involuntary conversion, 3 = Death of seller, 4 = No tax avoidance)

Explanation if no tax avoidance purposeSelling price of property sold by related party

Sale to related partyCasualty or theft gain postponed

Does not qualify for installment treatment (State use only)

Treatment code / description

1250: Applicable percentage, if other than 100 (xxx.xx)

1252: Applicable percentage, if other than 100 (xxx.xx)

State

Form

Unit

Description

Section 1250 propertyGross proceeds were reported on Form 1099‐S or 1099‐B (Form 4797, line 1)

Disposition due to casualty or theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowableAlternative minimum tax gain or (loss) adjustment (Schedule I, line 13)

1250: Additional depreciation after 1975

1250: Additional depreciation after 19691252: Soil, water and land clearing expenses

1254: Intangible drilling and development costs1255: Applicable payments excluded from income under section 126

Mortgage and other debts the buyer assumedTotal current year payments received

Related party:

Identification numberCity, state, zip codeAddressName

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Sale 43A

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158

Form [43A] - Sale of Business Property

Overview

Use this form to enter asset sale information for Form 4797 and current-year installment sales for Form 6252. Use Form OthAsset, to enter additional information needed to calculate Form 4797 and Form InstPY to enter prior-year installment sale information.

ExacTax uses the dates of acquisition and sale entered on this form to determine short-term versus long-term transactions, and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sales.

Form Sale is designed to enable you to enter asset sale information in one place and have ExacTax determine the proper category (or categories) in which to report each sale on the return. Because there is not a one-to-one correspondence between the position of an asset in the input form and in the form, ExacTax dynamically allocates assets to the appropriate form position.

Note: ExacTax provides a client-specific option to specify the method of entering asset information: you can enter it either in the asset module or in the various depreciation forms. If you choose the asset module as the data entry method, this form is not applicable and is not visible. To enter asset information using this form, choose File > Client Properties > Advanced Properties > Enter Asset Detail tab, and clear the Enter asset detail information checkbox to turn off the application default.

Asset information entered directly on Form 4797 or 6252 does not transfer back to Form Sale, and ExacTax does not print the form.

General Information

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit. For example, this information enables ExacTax to link information (such as income or loss, sales, credits, and asset detail) for the activity. The table that follows lists the available forms and their applicable folder location.

Folder Description

Income Form 1041, Page 1

Business Schedule C

Farm Schedule F

K1 1065, 1120S Schedule E, Part II

K1 1041 Schedule E, Part III

Rent & Royalty Schedule E, Part I

Description

ExacTax uses this description, which transfers automatically from the asset input, as the unit description in the drop-down list in the input form’s tab. If you are entering assets manually, you must also enter a description in this field.

State



159

Section 1250 property

Enter X to indicate that the asset sold was section 1250 property. ExacTax calculates unrecaptured section 1250 gain, if applicable, and uses it in the tax calculation using maximum capital gains rates.

Unrecaptured section 1250 gains from Forms 4797 and 6252 transfer to the Schedule D Unrecaptured Section 1250 Gain Worksheet. This worksheet calculates the total unrecaptured section 1250 gains for Schedule D, Page 2.

Casualty or theft gain postponed

For a casualty gain reported on Form 4797, Part III, if some of the gain is postponed due to the purchase of replacement property, enter the amount of postponed gain. ExacTax adjusts Form 4797, line 24 by this amount.

Sale to related party

If there is a disallowed loss on the sale, enter X. If this field is marked, ExacTax enters an item to reverse the loss on Form 4797, line 2 or 10.

Does not qualify for installment treatment

For Pennsylvania returns, enter X for a unit that does not qualify for installment treatment. For more information, access the input form help by pressing F1 from within a state input form.

Sale Information

Date acquired / Date sold

Enter acquired and sold dates in the MMDDYY format. Enter I or 999998 in the Date acquired field to designate an asset as inherited; ExacTax treats this as a long-term holding period. Enter V or 999999 to have the word "Various" print for the date on the return.

Note: If electronically filing this return, IRS Publication 5078 does not accept Various as entered in the Date acquired or Date sold fields. The word Inherit is acceptable in the Date acquired field if the sale appears in Part I or II. A valid date must be entered in the Date sold field or the return will be rejected.

Commissions and other expenses of sale

Include fixing-up expenses for Form 6252. ExacTax adds this amount to basis for dispositions. This amount reports separately for installment sales.

Alternative minimum tax gain or (loss) adjustment

Enter the difference between the gain or loss reported for the regular tax and the gain or loss calculated for the AMT. ExacTax uses this amount to calculate the adjusted gain or loss reported on Schedule I.


Mortgage and other debts the buyer assumed / Total current year payments received

When using this section in the year of sale, be sure to enter the applicable information in the Mortgage and other debts the buyer assumed and Total current year payments received fields. The Mortgage and other debts the buyer assumed field must include the amount of any assumed debts.


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Date of second sale

ExacTax marks the checkbox on Form 6252, line 29a if the date in this field is more than two years after the date in the Date sold field and you enter the sale price in the Selling price of property sold by related party field.

Explanation if no tax avoidance purpose

If the non-tax avoidance exception applies to the disposition, enter the explanation required by Form 6252 in the field for this field. If there is data in the field, ExacTax marks the appropriate checkbox on the form and prints the statement.

Notes


If there is information in the field and code 1 or 2 is entered in the Special condition if applicable field, ExacTax marks two exception codes on Form 6252.

Selling price of property sold by related party

ExacTax marks the checkbox on Form 6252, line 29a if you enter the sales price in this field and the date in the Date of second sale field is more than two years after the date in the Date sold field.


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Like-Kind Exchanges8824 (2016)

General Information

Part I - Information on the Exchange

Part III - Computation of Gain and Basis

Related Party Exchanges

Fair market value of other property given upAdjusted basis of other property given upCash received

Fair market value of like‐kind property received

Liability assumedCash paidAdjusted basis of like‐kind property given upLiability given upExchange expensesTotal potential ordinary income under recapture rules

RelationshipDuring this tax year, the related party sold or disposed of the property (1 = Yes, 2 = No)During this tax year, the like‐kind property received was sold or disposed of (1 = Yes, 2 = No)Special condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)

Explanation of no tax avoidance purpose

Fair market value of non‐section 1245 like‐kind property received

Total potential unrecaptured section 1250 gain

Form

Unit

Property given up

Description of property received

State


Date like‐kind property given up was:

Transferred to other partyDate like‐kind property received was:

Transferred from other party

Acquired

Identified

Related party:


Installment obligation received in like‐kind exchangeFair market value of other (not like‐kind) property received

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162

Form [43B] - Like-Kind Exchanges

Overview

Use this form to enter like-kind exchange information for Form 8824.

Note: ExacTax provides a client-specific option to specify the method of entering asset information: you can enter it either in the asset module or in the various depreciation forms. If you choose the asset module as the data entry method, this form is not applicable and is not visible. To enter asset information using this form, choose File > Client Properties > Advanced Properties > Enter Asset Detail tab, and clear the Enter asset detail information checkbox to turn off the application default.

General Information

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit. For example, this information enables ExacTax to link information (such as income or loss, sales, credits, and asset detail) for the activity. The table lists the available forms and their applicable folder location.

Folder Description


Business Schedule C

Farm Schedule F


K1 1041 Schedule E, Part III


Property given up

If there are multiple units of this input form, ExacTax uses this description as the unit description in the drop-down list in the input form’s tab. This is a required entry.

You must enter information in this field for ExacTax to recognize data on this form.

State

If you process a state return and the income for this activity is considered source income for that state, enter a postal code for proper state processing. If you leave this field blank, none of the income for this activity will be considered source income for that state.


Amounts

The amounts in these fields are used to calculate the basis and gain on the exchange.

ExacTax does not automatically transfer the gain or loss recognized on non like-kind property used in the exchange to the tax return. To report the gain or loss on the non like-kind property used in the exchange, enter the exchange information for those items separately on Form Sale or Income in the Capital gains or (losses) field, based on the correct reporting of the exchange.


163

Installment obligation received in like-kind exchange

Enter the amount of installment obligation received in the like-kind exchange, if at least one payment on the note is to be received after the close of the tax year in which the disposition occurs.


Related party information

Enter information about the related party in these fields. If you enter data in these fields, ExacTax proformas all of the data in the form for two years after the year of sale, unless either party has resold the like-kind property.

Note: ExacTax transfers gains to the appropriate form based on the data you enter.

Explanation of no tax avoidance purpose

If the no-tax avoidance exception applies to the disposition, enter the explanation required by Form 8824. If you entered an explanation, ExacTax marks the appropriate checkbox on the form and prints the statement.

Notes


If you enter information in this field and code 1 or 2 is entered in the Special condition if applicable field, ExacTax marks two exception codes on Form 8824.


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Prior Year Installment SaleInstPY (2016)

General Information

Gross Profit and Contract Price

Installment Sale Income

Related Party Installment Sale Information

Form

Unit

Description

Treatment code / descriptionSection 1250 propertyDelete on next year's proformaDoes not qualify for installment treatment (State use only)

Date acquiredDate soldGross sales price or insurance proceeds receivedMortgage and other debts the buyer assumedCost or other basisDepreciation allowed or allowableCommissions and other expenses of saleIncome recapture from Form 4797Alternative minimum tax gain or (loss) adjustment (Schedule I, line 13)

Prior year gross profit percentage (Force) (xxx.xxxx)Total current year payments receivedPrior year payments receivedBalance of unrecaptured section 1250 gain to be taxedBalance of alternative minimum tax unrecaptured section 1250 gain to be taxed

Total ordinary income to recapture (Section 1252, 1254, or 1255 property only)

Ordinary income previously recapturedBeginning of year, remaining gross profit (Used for passive loss and AMT adjustments)



State

Related party:


Balance of section 1202 exclusion

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InstPY 43D

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165

Form [43D] - Prior Year Installment Sale

Overview

Use this form to enter asset sale information for Form 6252 for prior-year installment sales. Enter current-year installment sales on Form Sale. If you enter current-year installment sales on this form, ExacTax does not report them correctly on Form 6252.

ExacTax uses the dates of acquisition and sale entered on Form InstPY to determine short-term versus long-term transactions; the appropriate parts of Form 4797, Form 6252, or Schedule D on which to report sales; and whether the transaction is a prior-year installment sale.

This form is designed to enable you to enter asset sale information in one place and have ExacTax determine the proper category (or categories) in which to report each sale on the return. Because there is not a one-to-one correspondence between the position of an asset in the input form and in the form, ExacTax dynamically allocates assets to the appropriate form position.

If you enter asset information directly on Form 4797 or 6252 and not on Form InstPY, ExacTax does not print the form. Asset information that you enter directly on the form does not transfer to Form InstPY. Do not enter asset information directly on

the form. Enter sale information on this form.

General Information

The information in this section applies to all of the forms used to report sales of assets.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for this business activity. For example, this data enables ExacTax to link information (such as income or loss, sales, credits, and asset detail) for the activity. The following table lists the available forms and their applicable folder location.

Folder Description


Business Schedule C

Farm Schedule F

K1 1065, 1120S Schedule K1 Partnership / S Corporation

K1 1041 Schedule K1 Estate / Trust

Rent & Royalty Schedule E, Page 1

Description

ExacTax uses the description entered as the unit description in the drop-down list in the input form's tab.

State




166

Enter X to indicate that the asset sold was section 1250 property. If marked, ExacTax calculates unrecaptured section 1250 gain, if applicable, and uses it in the tax calculation using maximum capital gains rates.

Unrecaptured section 1250 gains from Forms 4797 and 6252 transfer to the Schedule D Unrecaptured Section 1250 Gain Worksheet, which calculates the total of such gains to report on Schedule D, Page 2.


For Pennsylvania returns, enter X for a unit that does not qualify for installment treatment.


Use this section of the input form to enter gross profit and contract price information. ExacTax uses the information in this section to allocate any alternative minimum tax gain / loss adjustment and to properly complete Form 6252, Part 1, Gross Profit and Contract Price.


Enter acquired and sold dates in the MMDDYY format. Enter I or 999998 in the Date acquired field to designate an asset as inherited; ExacTax treats this as a long-term holding period if you leave the Force field blank. Enter V or 999999 in the Date acquired field if the asset was acquired on various dates; ExacTax treats this as a short-term holding period if you leave the Force field blank.

Note: If electronically filing this return, IRS Publication 1438 does not accept Various or Inherit as entered in the Date acquired or Date sold field. A valid date must be entered or the return will be rejected.

Gross sales price or insurance proceeds received

Enter the total of any money, face amount of installment obligation, and the FMV of other property received. Also include any existing mortgage or other debt the buyer assumed or took the property subject to. The amount entered must include the amount of any indebtedness assumed to properly report the installment sale.

Alternative minimum tax gain or (loss) adjustment

Enter the difference between the gain or loss reported for the regular tax and the gain or loss calculated for the AMT. ExacTax uses this amount to calculate the adjusted gain or loss reported on Schedule I, line 13. ExacTax calculates the current-year gain or loss adjustment as the percentage of current-year gain divided by total gain to be reported over the life of the installment sale.


Use this section to enter information for Form 6252, Part II. Enter only prior-year installment sales in this input form. Enter current-year installment sales on Form Sale.

If a prior-year sale is a section 1231 sale, ExacTax uses the dates of acquisition and sale to determine if the Form 6252 gain transfers to Form 4797, Part I or Part II. Long-term sales transfer to Part I and short-term sales transfer to Part II. If other Form 4797 information is present, the gain transfers to the appropriate line. If other Form 4797 information is not present, the gain transfers directly to Schedule D (either short term or long term).

Total current year payments received

ExacTax prints Form 6252 if you enter an amount in this field or if the payment is a related party transaction and Part III is required. To print Form 6252 when there are no payments in the current year, enter 0 (zero) in this field.


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Prior year payments received

ExacTax uses the information you enter in the field to produce an installment sale history automatically when printing. ExacTax requires complete sale information to produce an accurate report. Prior-year sales may not have complete sale information on the input form. To have a complete history of the installment sale, enter the information in the field.

If you do not want to use the installment sale dialog, enter prior-year payments directly into the input form field. ExacTax properly reports the amount on the Form 6252.

The fields within the field are described as follows. The statement reports current-year information first, so enter information in descending order.

Year: Enter the year the payment was received. ExacTax reports current-year information on the first line of the statement. Enter payments in descending order.

Contract Balance End of Year: Enter the end-of-year contract balance for the applicable year. The statement reports the current-year contract balance as net of the current-year principal payment.

Principal Payments: Enter the principal payment received. This amount should equal Form 6252, line 21, Payments received during year, for the applicable year. ExacTax displays this column's total on the input form and prints it on Form 6252.

Reported Income: Enter the installment sale income reported on Form 6252, line 24 for the appropriate year.

Total Income: Enter the amount of gross profit for the installment sale. Enter the gross profit reported on this sale's initial Form 6252, line 16. This amount remains constant for all years entered in the field.

Unreported Income: Enter the amount of gross profit that has not yet been reported as income.

Balance of unrecaptured section 1250 gain to be taxed / Balance of alternative minimum tax unrecaptured section 1250 gain to be taxed

Enter the amount of unrecaptured section 1250 gain to be taxed at the 25-percent rate. Per Regulations section 1.453-12, ExacTax applies the recognized gain first to unrecaptured section 1250 gain.

Total ordinary income to recapture / Ordinary income previously recaptured

Enter the amount of ordinary income to recapture for sections 1252, 1254, or 1255 property only. Do not enter ordinary income from a section 1245 or 1250 asset in these fields.

Beginning of year, remaining gross profit

Enter the remaining gross profit amount from the beginning of the year. ExacTax uses this amount in AMT and passive calculations, if applicable, and to produce the installment sale history statement.


Use this section to enter related-party installment sale information.

Date of second sale


168

ExacTax marks the checkbox on Form 6252, line 29a if the date in this field is more than two years after the date in the Date sold field and you enter an amount in the Selling price of property sold by related party field.


If the no tax avoidance exception applies to the disposition, enter the explanation as required by Form 6252. If there is data in the field, ExacTax marks the appropriate checkbox on the form and prints the statement.

Notes


If you enter information in the field and 1 or 2 in the Special condition if applicable field, ExacTax marks two exception codes on Form 6252.


ExacTax marks the checkbox on Form 6252, line 29a if you enter an amount in this field and the Date of second sale entry is more than two years after the Date sold entry.


169

Business Casualty and Theft Loss4684B (2016)

General Information

Business and Income Producing Properties

Replacement Information

A B C D

Property type (1 = Business, 2 = Income‐producing)

Holding period (Force) (1 = Short‐term, 2 = Long‐term)

Date acquiredCost or basis

Insurance or other reimbursementFair market value before lossFair market value after lossAMT gain or (loss) adjustment

Casualty or theft number

Description

Date of casualty or theftDelete on next year's proforma

Unit

Form

Cost of replacement propertyDate acquiredProperty acquired from related party

Asset number

Accumulated depreciation

Postpone entire gainGain reported on Form 4797, Part III

DCBA

State

BCD

AProperty descriptions:

Replacement property descriptions:A

DCB

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Form [43E] - Business Casualty and Theft Loss

Overview

Use this form to complete Form 4684, Casualties and Thefts, Page 2 for casualties and thefts that occurred in the current year. To enter information about replacement property for a casualty or theft that occurred in a prior year, use Form 4684PY.

Note: ExacTax provides a client-specific option to specify the method of entering asset information: you can enter asset information either in the asset module or on the various depreciation forms.

General Information

Use this section to enter the general information about the casualty or theft.

Unit / Form


Folder Description


Business Schedule C

Farm Schedule F



Example

The estate or trust had a casualty in which six properties were lost or damaged and another casualty in which one property was lost or damaged. You would enter 1 in the Casualty or theft number field on the first unit of Form 4684B, and enter the information for four of the lost or damaged properties in the first casualty. You would add a second unit of Form 4684B, enter 1 in the Casualty or theft number field, and enter the information for the remaining two lost or damaged properties in the first casualty. You would add a third unit of Form 4684B, enter 2 in the Casualty or theft number field, and enter the information for the lost or damaged property in the second casualty.

Description

Enter the description of the casualty or theft. ExacTax transfer this information to Form 4684, line 29 for short-term assets or to line 34 for long-term assets. This description appears in the folders block.


State

If you process a state return and the income or loss for this activity is considered source income or loss for that state, enter a state postal code for proper state processing. If you leave this field blank, none of the income or loss for this activity will be considered source income or loss for that state.


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Enter a unique number for each casualty or theft. If more properties are lost or damaged in a casualty or theft than will fit on one unit of Form 4684B, enter the same casualty or theft number on all units for that casualty or theft.

Date of casualty or theft

Enter the date of the casualty or theft. This date does not transfer to the return; however, ExacTax uses the date to determine the holding period of the gains or losses.

Delete on next year’s proforma

Enter X to prevent this casualty from being proforma’d to next year. If you leave this field blank and enter X in the Postpone entire gain field, ExacTax proformas the information on the form to next year.


Use this section to complete Form 4684, Page 2, Section B for each property.

Property descriptions: A / B / C / D

Enter a description for each property. ExacTax transfers this information to Form 4684, line 19.

Asset number

ExacTax transfers this information from the Form 51 if you entered detailed asset information for this return. If you did not use the asset module, you cannot enter information in this field.

Property type

Enter 1 to indicate trade or business property or enter 2 to indicate income-producing property. This entry determines in which column losses for the casualties or thefts are reported in Section B, Part II. If you leave this field blank, ExacTax defaults to business property and includes any loss amounts in column (i).

Holding period (Force)

ExacTax determines a short-term or long-term holding period based on the dates you entered in the Date acquired and Date of casualty or theft fields. Enter I or 999998 in the Date acquired field to designate an asset as inherited; ExacTax treats this as a long-term holding period. Enter V or 999999 in the Date acquired field if the asset was acquired on various dates; ExacTax treats this as a short-term holding period. To change the holding period, enter 1 for short term or 2 for long term in this field.

Postpone entire gain

Enter X if the taxpayer expects to acquire replacement property of sufficient basis to postpone the entire gain, but has not done so in the current year. If all of the replacement property is acquired in the current year, enter the replacement information in the Replacement Information section of this form and leave this field blank.

Gain reported on Form 4797, Part III

If there is a long-term gain from the casualty or theft of depreciable property, enter the information on Form Sale and on this form, and enter X in this field and in the Disposition due to casualty or theft field on Form Sale. If you enter X in this field, ExacTax completes Form 4684, Section B, Part I, but does not transfer any gain from this property to Part II.


172

Date acquired

Enter the date the client acquired each property. ExacTax transfers this information to Form 4684, line 19.

Cost or basis

Enter the basis of each property. ExacTax transfers this information to Form 4684, line 20.

Insurance or other reimbursement

Enter the insurance or other reimbursement related to each property. ExacTax transfers this information to Form 4684, line 21.

Fair market value before loss

Enter the fair market value of the properties before the loss in these fields. ExacTax transfers this information to Form 4684, line 23.

Fair market value after loss

Enter the fair market value of the properties after the loss in these fields. ExacTax transfers this information to Form 4684, line 24.

Note: If you leave the Fair market value after loss field blank, ExacTax assumes that the casualty or theft totally destroyed the property and that the fair market value after the loss is zero. You can enter 0 (zero) if applicable.

AMT gain or loss adjustment

Enter the difference, if any, between the basis of the asset for regular tax purposes and the basis for AMT purposes. ExacTax transfers this information to Schedule I, line 13.


Use this section to enter information about property acquired as replacement for property entered in the Business and Income-Producing Properties section of this form. ExacTax uses this information to calculate the deferred gain and prints a statement with Form 4684 with the information.

Note: You must enter replacement properties in the fields that correspond to the lost or damaged properties being replaced. If a property in the Business and Income Producing Properties section is not replaced, leave the corresponding fields in this section blank.

Replacement property descriptions: A / B / C / D

Enter a description for each replacement property.

Property acquired from related party

Enter X in this field if you do not want ExacTax to calculate deferred gain for the particular property.


173

Prior Year Business Casualty and Theft Loss4684PY (2016)

General Information




Accumulated depreciationInsurance or other reimbursement

Cost of replacement propertyDate acquired


Unit

Form

A B C D



Date acquiredCost or basis


AMT gain or (loss) adjustment


DCBA

Description State


A

DCB

BCD

A

Property descriptions:

Replacement property descriptions:

Postponed gain (Force)Adjusted basis (Force)

1

2

3 4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

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29

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51

52

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60

61

62

63

64

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66

67

68

69

70

4684PY 43F

2016 FIDUCIARY1/23/2017 8:18:06 AM


174

Form [43F] - Prior Year Business Casualty and Theft Loss

Overview

Use this form to complete Form 4684, Casualties and Thefts, Page 2 when replacement property is acquired in the current year for casualties that occurred in a prior year.

General Information

Use this section to enter the general information about the casualty or theft.

Unit / Form


Folder Description


Business Schedule C

Farm Schedule F



Description

Enter the description of the casualty or theft. ExacTax transfers this information to line 29 for short-term assets or line 34 for long-term assets. This description appears in the folders block.


State

If you process a state return and the income or loss for this activity is considered source income or loss for that state, enter a state postal code for proper state processing. If you leave this field blank, none of the income or loss for this activity will be considered source income or loss for that state.


Enter the date of the casualty or theft. This date does not transfer to the return; however, ExacTax uses the date to determine the holding period of the gains or losses.


Enter X to prevent this casualty from being proforma’d to next year.


Use this section to complete Form 4684, Page 2, Section B for each property.


175


Enter a description for each property. ExacTax transfers this information to Form 4684, line 19.

Property type

Enter 1 to indicate trade or business property or 2 to indicate income-producing property. This entry determines in which column the losses for the casualties or thefts are reported in Section B, Part II. If you leave this field blank, ExacTax defaults to business property and includes any loss amounts in column (i).


ExacTax determines a short-term or long-term holding period based on the data entered in the Date acquired and Date of casualty or theft fields. To change the holding period, enter 1 for short term or 2 for long term.


If there is a long-term gain from the casualty or theft of depreciable property, enter the information on Form Sale as well as on this form and enter X in this field and in the Disposition due to casualty or theft field on Form Sale. If you enter X in this field, ExacTax completes Form 4684, Section B, Part I, but does not transfer the gain to line 33.

Date acquired

Enter the date the client acquired each property. ExacTax transfers this information to Form 4684, line 19. Enter I or 999998 in this field to designate an asset as inherited; ExacTax treats this as a long-term holding period. Enter V or 999999 in this field if the asset was acquired on various dates; ExacTax treats this as a short-term holding period.

Cost or basis

Enter the basis of each property. ExacTax transfers this information to Form 4684, line 20.




Enter the fair market value of the properties before the loss in these fields. ExacTax transfers information to Form 4684, line 23.



Note: If the Fair market value after loss field is blank, ExacTax assumes that the casualty or theft totally destroyed the property and that the fair market value after the loss is zero. You can enter 0 (zero) if applicable.

AMT gain or (loss) adjustment

Enter the difference, if any, between the basis of the asset for regular tax purposes and the basis for AMT purposes. ExacTax transfers this information to Schedule I, line 13.


176


Use this section to enter information about property acquired as replacement for property entered in the Business and Income Producing Properties section of this form. ExacTax uses this information to calculate the deferred gain and prints a statement with Form 4684 with the information.

Note: You must enter replacement properties in the fields that correspond to the lost or damages properties being replaced. If a property in the Business and Income Producing Properties section is not replaced, leave the corresponding fields in this section blank.

Replacement property descriptions: A / B / C / D

Enter a description for each replacement property.


177

Section 179 Pass-Through SaleK1Sale (2016)

General Information

1065 / 1120S Section 179 Sale Information



Depreciation allowed or allowable excluding section 179Alternative minimum tax gain or (loss) adjustment (Schedule I, line 13)Total section 179 expense deduction





Sale is a prior year installmentPrior year gross profit percentage (Force) (xxx.xxxx)

Prior year payments receivedIncome recapture from Form 4797Beginning of year, remaining gross profit for passive loss and AMT adjustments


Delete on next year's proformaTreatment code / description

State

Form

Unit

Description

Disposition due to casualty or theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

Does not qualify for installment treatment (State use only)

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of sale

NameAddressCity, state, zip codeIdentification number

Related party:

Explanation, second line

1

23

4

5 6

7

8

9

10

11

12

13

14

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18

19

20

21

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26

27

28 29 30

31

32

33

34

35

36

37

K1Sale 43G

2016 FIDUCIARY1/23/2017 8:18:06 AM


178

Form [43G] - Section 179 Pass-Through Sale

Overview

Use this form to enter sales information for asset dispositions that were separately stated on Schedule K-1 (Form 1065) or Schedule K-1 (Form 1120S).

General Information

Unit / Form

ExacTax transfers information from Form K1 to these fields. You can modify the information in these fields only by making changes on Form K1.

Description

Enter the description of the asset. This is a required entry.

You must enter data in this field for ExacTax to recognize data on this form.

State



If there is a disallowed loss on the sale, enter X. If this field is marked, ExacTax enters an item to reverse the loss on Form 4797, line 2 or line 10.


For Pennsylvania returns, enter X for a unit that does not qualify for installment treatment. For more information, access the input form help by pressing F1 from within a state input form.

1065 / 1120S Section 179 Sale Information


Enter acquired and sold dates in MMDDYY format. Enter I or 999998 in the Date acquired field to designate an asset as inherited; ExacTax treats this as a long-term holding period. Enter V or 999999 to have the word "Various" print for the date on the return.

Note: If electronically filing this return, IRS Publication 5078 does not accept Various as entered in the Date acquired or Date sold fields. The word Inherit is acceptable in the Date acquired field if the sale is reported on Form 4797, Page 1. You must enter a valid date in the Date sold field or the return will be rejected.

Total section 179 expense deduction

Enter the amount of section 179 expense for this asset that was originally passed through from the partnership or S Corporation.


179

Note: ExacTax assumes that an amount entered in this field relates to section 179 expense that was taken before the estate or trust was a partner or shareholder and that the estate or trust has no section 179 carryover. If some or all of the section 179 expense was not used, enter the amount actually used in this field.


Sale is a prior year installment

Enter X if the installment sale was in a prior year. ExacTax uses this information to determine whether to complete Form 6252, Part I.


Date of second sale

ExacTax marks the checkbox on Form 6252, line 29a if the date in this field is more than two years after the date in the Date sold field and you enter the sale price in the Selling price of property sold by related party field.


ExacTax marks the checkbox on Form 6252, line 29a if you enter the sales price in this field and the date in the Date of second sale field is more than two years after the date in the Date sold field.


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181

Form [50] – General Depreciation

Overview Input Form Asset [50] is used to enter information for the calculation of depreciation and amortization, and the preparation of Form 4562 for assets that meet all of the following conditions:

not listed property

are 100% business use

See Form Asset -Listed/Other [51] for all listed property and non-listed property with less than 100% business use.

Caution All detail depreciation or amortization must be entered on detail forms [50] and [51].

Additional pages are available as necessary.

Overflow input is available for this form.

Multi-state overflow input is available for this form.

Protecting Americans from Tax Hikes Act of 2015 ExacTax has been updated for the Protecting Americans from Tax Hikes Act of 2015 as follows.

Bonus first‐year Depreciation — Qualified property placed in service between 1/01/15 and 12/31/19 is allowed first‐year bonus depreciation. The bonus depreciation percentage is 50% for property placed in service between 2015 and 2017, 40% for property placed in service during 2018 and 30% for property placed in service during 2019. In addition, the first‐year passenger automobile limits have increased by $8,000 for 2014 through 2017, $6,400 for 2018 and $4,800 for 2019.

Section 179 — The maximum amount of section 179 allowed has increased from $25,000 to $500,000, for 2015 and later tax years. Of the $500,000, up to $250,000 for the 2015 tax year can be expensed for qualified real property. In addition, the $200,000 investment limitation has been increased to $2,000,000.

Qualified real property for section 179 —Qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) placed in service in a 2015 tax year is eligible for section 179 expensing. The maximum amount of section 179 expense allowed for qualified real property is $250,000.

Leasehold Improvements, Retail Improvements and Restaurant Building Improvements — The Method/Life Wizard has been updated for Leasehold Improvements, Retail Improvements and Restaurant Building Improvements to permanently use the 15‐year recovery period.

Indian Reservation Property — The Indian Reservation and Indian Reservation Farm Method have been updated to allow the accelerated depreciation for business property through 2016.

Depreciation

General The Input Form 4562 [50] contains input for up to six assets and up to five different computations per asset on a page. The various computations used for Tax, AMT, State, State AMT, etc., will be referred to as ‘treatments’. Each treatment may have a different set of values for cost, method, life, etc., where allowed. ExacTax will automatically use the appropriate default values that are derived from the Tax (federal) treatment for the other treatments. In general you only need to enter the information for the Tax treatment and any prior year data, such as prior depreciation or Section 179 that is different for the other treatments.


182

For new clients the following chart shows the default treatments that are created:

Entity Type Default Treatments 1065 Tax, Book, State, AMT, State AMT (for certain states) * 1120 C Tax, Book, State, AMT, ACE, State AMT (for certain states)* 1120S Tax, Book, State, AMT, State AMT (for certain states) * 1041 Tax, State, AMT, State AMT (for certain states) *

Entity Type Default Treatments 1040 Tax, State, AMT, State AMT (for certain states) * 990 E Tax, State, AMT , State AMT (for certain states) * 990 PF Tax, State, AMT , State AMT (for certain states) *

* When a state return is present for CA, WI or IA.

The depreciation treatment is not applicable for some state returns.

For some states, the depreciation treatment is not needed and will not be used by the ExacTax state return. The treatment will not compute when that ExacTax state return is added to the client.

Depreciation may not be applicable because:

the state return is not an income tax return.

state depreciation is not calculated different from federal depreciation.

the state adjustment for the federal bonus depreciation is an addback of the amount taken on a federal form (rather than the difference between depreciation calculated with the bonus and depreciation calculated without the bonus). These states include:

Entities State1040 & 1065 CT, IL, MN, NC, NE, and OH1120C IL, MN, NC, NE, OH, OK, and PA1120S CT, IL, MN, NC, NE, OH, and OK1041 AZ, IL, MN, NC, NE, OH, and OK

Related Schedules/Forms Enter the unit number of the Input Form to which this Input Form [50] relates (A, C, E, F, etc.). For example, to attach the depreciation to Form C [28], unit 2, enter 2 in the box for C#. To attach the depreciation to the first Form 2106 [72], enter 1 in the box for 2106#.

All depreciation on this particular Input Form [50] will carry to the indicated form.

Note If all attachment boxes are blank, or the Schedule or Form unit indicated does not exist, depreciation will be carried to Schedule A.

Tax Assumptions The following items represent tax assumptions built into ExacTax. If you want to create a different result than the program because you disagree with any of the assumptions, you may always force the desired depreciation for any asset.

Description This field is limited to 20 characters.

Date in Service ExacTax assumes that any date after 12/31/29 is in the 1900s and any date before 01/01/30 is in the 2000s. Enter the full date (mmddyy) the property was first placed into service. An entry here is mandatory for all assets. This includes assets that are not being depreciated such as vehicles using the mileage method and a Home Office in a rental. Do not enter “V” for “VARIOUS” as the date. Entries with an invalid date will be defaulted to 01/01/Tax Year} for assets with no prior depreciation/amortization and 01/01/{Prior Year} for assets with prior depreciation/amortization.

Cost or Basis


183

Enter the cost or other basis of the asset. Do not adjust the cost by any Section 179 expense, Section 168(k) (Bonus depreciation), ITC, Salvage value, or prior years’ depreciation that may have been taken. The system will automatically make the appropriate basis adjustment from other input. Use the state treatment column only for assets with a different initial state basis. A negative entry is allowed a will compute a negative amount for depreciation.

Method of Depreciation Enter the method of depreciation from the following list. This is a mandatory entry even when the item is fully depreciated, fully expensed, etc. However, you may enter only the description and date in service if you are entering listed property on Form [51] or Home Office on Form [52]. The state method should be entered only when it is different from the federal method. The AMT treatment will automatically use the applicable method and life based on the method, life and date in service.

MACRS (Post 1986 Acquisitions) Code Method Valid LivesM MACRS (200% DB) 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS SL MACRS Straight-line 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS SL ADS MACRS Straight-line ADS life Any*** (Enter in the ADS Life field) MACRS 150 MACRS 150% & farm property 3, 5, 7, 10, 15, 20, 25, 27.5*, 31.5**, 39**MACRS 150 MACRS 150% & farm property Any*** (Enter in the ADS Life field)

*Residential Rental Property ** Nonresidential Real Property, 39 Years after 5/13/93 ***Also requires the regular MACRS class life in the Life field

ACRS (Post 1980/Pre 1987) Code Method Valid Lives Valid ADS Lives A ACRS 200DB 3, 5, 10, 15, 18, 19 (after 5/08/85) ACRS SL ACRS Straight-line 3, 5, 10, 15, 18, 19 (after 5/08/85) 3, 5, 12, 25, 35, 45

Non-Recovery (Includes Pre-1981)

Code Method Valid Lives ST Straight-line Any 125 125% Declining Balance Any 150 150% Declining Balance Any 200 200% Declining Balance Any

Other

Code Method Valid Lives A Amortization Any L Land N/A M Memo entry Any U Units of Production Enter current units in Life; Total units in ADS Life Y Sum of Years Digits Any

Life or Recovery Period This is a mandatory entry even when the asset is fully depreciated, fully expensed, etc., except for methods L (Land) and M (Memo entry). For residential rental property with a 27½ year life and for nonresidential property with a 31½ life, the half year is assumed and should not be entered.

Mid-Quarter Convention ExacTax applies the mid-quarter test to all of the client’s “appropriate” assets to determine whether the mid-quarter convention applies. If it does apply, ExacTax recalculates MACRS depreciation for the applicable current-year assets. An appropriate asset is defined as an asset in the Tax column that is:

A current-year MACRS asset (except 27.5, 31.5, and 39-year real property)

Not marked in the Mid-Quarter & Section 179 Force Options on Form [53] to exclude from mid-quarter determination

Not disposed of in the current year


184

Not a luxury auto expensed using standard mileage

A current-year real property MACRS asset, which is marked in the Mid-Quarter & Section 179 Force Options on Form [53] to include in the mid-quarter determination

Note: To force MACRS property (5, 10, 15, 20, and 25 yr) to be treated as real property, on Form 53 you need to mark the Exclude from mid-quarter determination (force) checkbox in the Mid-Quarter & Section 179 Force Options and Not eligible section 179 property.

ExacTax uses the entire basis of the new component asset acquired through a trade or a replacement of a casualty / theft in the mid-quarter convention calculation.

For luxury autos or listed property, the mid-quarter determination uses the business percentage of the cost shown in the Tax column.

Assets that have been expensed under section 179 are not included in the mid-quarter determination. However, if an asset was partially expensed, then the amount subject to depreciation is included in the calculation.

ExacTax uses the basis of the asset without reduction for the section 168(k) bonus depreciation when calculating the mid-quarter convention test.

Depreciation Convention ExacTax will automatically compute the applicable convention for MACRS personal property; mid-month, mid-quarter or half-year for current year assets. If the mid-quarter convention was used on a prior year asset, check the Prior Mid-qtr box just below the Asset # field. To override the convention computation for an individual current year asset, use Form Asset-Other [53].

Enter the same activity and unit number at the top and enter the asset number in the applicable field.

In the Mid-Quarter and Section 179 Force Options section check the box Asset calculated using mid-qtr

This Force affects only this asset. You may also check the box to Include in mid-quarter calc, which will incorporate the cost into the ExacTax computation of applicable convention that is applied throughout the return. Collate this Form immediately behind the Form 50, 51, 52 or 2106 containing the asset that is being forced.

Section 179 Enter the amount to be expensed under Section 179. ExacTax will automatically adjust the cost (or other basis) to determine the depreciable basis. For assets placed in service during the current year, ExacTax

will apply all applicable limitations to determine the allowable Section 179 expense deduction. Even when an asset is to be fully expensed, the date placed into service, method of depreciation, and life must still be entered.

Section 179 Total Property The total cost of section 179 property placed in service during the current year is the sum of the cost basis (adjusted for the business use percentage) of all personal property assets in all activities, except the Misc activity, placed in service in the current year with a depreciation method other than memo, land, or amortization not coded as computer software.

Section 168(k) (Bonus Depreciation Post 09-10-01) Bonus depreciation deduction was added by the Job Creation and Worker Assistance Act of 2002, (March 9, 2002), and will remain in effect for most property purchased and placed in service through 12/31/2004. The Act generally requires an additional first year depreciation deduction for qualified property placed in service after September 10, 2001. For qualified property placed in service after May 5, 2003, the bonus rate was increased to 50%. The term “qualified property” is defined in Section 168(k)(2). The additional first year depreciation deduction is allowed for both regular tax and alternative minimum tax purposes for the taxable year in which the qualified property is placed in service. Currently, many states do not follow the federal law on this deduction and ExacTax will compute a state if different adjustment when required.

The new law requires that bonus depreciation be taken on all qualifying property, unless an election out is made on a class-by-class basis: 3, 5, 7, 10, 15, 20-year property and computer software. See Input Form Asset-Bonus Depreciation Elections [54] for information on making current year elections and indicating any prior year elections that were made.

The amount of Bonus depreciation claimed in not shown in the treatment as a separate item. Prior Bonus is included in the Prior Depreciation field and current Bonus is included in the Current Depreciation field.

The initial system assumption is that most property qualifies, other than real property, unless otherwise indicated. Used property that is purchased does not qualify. Identify used property by checking the ‘Used’


185

box located above the Date in Service field. To stop Bonus from being claimed on property without checking ‘Used’, enter a code ‘P’ in the Sec 168(k) type (Bonus)field.

Certain Leasehold Improvement property may also qualify for bonus depreciation. The system default is that real property (with lives of 27.5, 39 or 40) does not qualify for additional bonus depreciation. To indicate qualified leasehold improvement property, enter a code ‘L’ in the Sec 168(k) type (Bonus) field located at the bottom of the treatment columns. This must be entered for each qualified leasehold improvement. See the chart that follows for all Sec 168(k) type (Bonus) codes:

Qualified Property Property will be considered qualified for the automatic calculation of additional bonus when:

Date in service = Current year AND

Business Use Percentage is greater than 50% AND

The current year depreciation is not overridden AND

Used property is not indicated AND

The asset has not been disposed AND

A MACRS Method is used AND Class Life = 3, 5, 7, 10, 15 or 20 OR

A MACRS Method is used AND

Leasehold Improvement is indicated with an ‘L’ in the Sec 168(k) type (Bonus) code AND

No election out has been made for that asset’s class.

Note: Where the current year depreciation is manually entered, it must also include the bonus depreciation.

Sec 168(k) Type (Bonus) Codes

Code Description C Computer Software L Leasehold improvement N NY Liberty Zone real property NYLZL NY Liberty Zone leasehold improvement P Property is not qualified (for reasons other than being used property)

Salvage Value For Nonrecovery property, enter the salvage value.

Form 4255 – Investment Tax Credit

For Form 4255, line 3, ExacTax uses the greater of the amount claimed or the amount calculated.

To enter Investment Tax Credit information: Enter the credit code form the list that follows.

Note: ExacTax automatically calculates the credit amount. If you disagree with this amount, you can enter your manually computed amount in the amount field next to the code.

No additional information is necessary for the Solar Energy, Geothermal Energy, or reforestation credits.

For credit codes R, C and T, use Form Asset-Other [53] to enter additional information. Enter the same activity and unit number at the top and enter the asset number in the applicable field. Enter the required information in the Investment Credit Information section. The items to enter vary depending on the credit code entered in step 1.

CodeDescriptionA Alternative Fuel CreditR Rehabilitation Credit (Pre-1936 building)C Rehabilitation Credit (Certified Historic Structure)S Solar Energy Credit


186

CodeDescriptionG Geothermal Energy CreditF Reforestation CreditI Hawaii Excise Tax Credit (enter in HI treatment only)T ITC (Transition rules; adjust basis by full credit)O Other Credits (adjust basis by full credit)

To enter Hawaii Excise Tax Credit Information: Enter a code I in the ITC code field.

Note: ExacTax automatically calculates the credit amount. If you disagree with this amount, you can enter your manually computed amount.

Enter information in the applicable fields in the Hawaii excise tax credit section on Form Asset -Other [53].

Amortization Section For property being amortized, (method AM). Enter the IRC section which entitles the deduction (i.e. ‘461’ for mortgage points) in the Amortization Section field from the following list. This entry does not affect the amortization computation but could affect where the deduction is claimed. If amortization is used on an asset linked to Schedule A, such as points on a refinance, you must enter code 461. For amortization to Schedule A, when this is left blank, or any other code section is used, the deduction will be taken to the Miscellaneous, Subject to 2% of AGI section instead of to the Mortgage Interest section.

Code Description167 Computer software169 Pollution Control Facilities171 Certain Bond Premiums173 Circulation Expenditures174 Research and Experimental Expenditures178 Cost of Acquiring a Lease184 Railroad Rolling Stock194 Qualified Forestation and Reforestation Costs195 Business Start-up Expenditures197 Goodwill and Other Intangibles248 Organizational Expenditures (Corporations)263 Intangible Drilling Costs461 Mortgage Points616 Development Expenditures617 Mining and Exploration Expenditures709 Organizational and Syndication Fees (Partnerships)

Prior Depreciation Enter the depreciation allowed or allowable in prior years.

Caution

Do not include any Section 179 expense in this amount. Bonus depreciation should be included.

Regardless of whether the correct depreciation was taken in prior years, ExacTax still calculates the correct current depreciation according to the method you specify. If incorrect depreciation was taken in a prior year, ExacTax does not adjust the current depreciation so that the ending accumulated depreciation is correct. Also, if YTD depreciation is incorrect for monthly or quarterly periods, ExacTax calculates an adjusted current-period depreciation so that YTD plus current depreciation yields the correct ending amount through the end of the current period. The current-period depreciation could be a negative amount in that case.

Current Year Depreciation If this field is blank, the system will automatically compute the current year depreciation amount, based on the applicable convention for the year. An entry in this field will override the automatic system computation.


187

Alternative Minimum Tax Life Post 1998 (MACRS) For computing alternative minimum tax depreciation for property placed in service after 1998 that uses the 200% declining balance method (method M) ExacTax uses the 150 % declining balance method and the same recovery period used for regular tax. No preference adjustment is computed for any asset using straight-line (MACRS SL), MACRS 150, ADS class life or has claimed the Bonus depreciation.

Post 1986 – Pre 1999 (MACRS) Enter the life for computing alternative minimum tax depreciation if you wish to override the system defaults.

AMT Calculation The following table shows when ExacTax performs the automatic AMT calculations:

Method Used Real Property Personal: New or Used MACRS: accelerated for personal, S-L for real property

Automatic AMT calc Automatic AMT calc

MACRS: straight-line Automatic AMT calc

Alternative Depreciation System: MACRS (150% D.B.)

Automatic AMT calc

Regular ACRS accelerated percentages Automatic AMT calc Optional ACRS straight-line percentages Automatic AMT calc. when using

accelerated life

Straight-line 125% declining balance Automatic AMT calc 150% declining balance Automatic AMT calc 200% declining balance Automatic AMT calc Sum-of-the-year’s digits Automatic AMT calc Straight-line amortization Memo asset (no depreciation)

* = Automatic AMT calc. ** = Automatic AMT calc. when ADS life is not equal to 40 years

*** = Automatic AMT calc. when using accelerated life

For personal property not qualified for section 168(k) acquired after 12/31/98, AMT and the 150% election under MACRS are calculated over regular MACRS lives instead of Alternative Depreciation System lives.

For qualified 168(k) assets, the AMT treatment is calculated the same as the Tax treatment.

Rounding If an asset’s remaining amount to be depreciated is $1.01 or less, ExacTax automatically adds it to the current depreciation amount and sets the remaining amount to zero to prevent later rounding problems.

Limit ACRS/MACRS to Life By default ExacTax does not depreciate ACRS/MACRS assets beyond their asset lives. However, two situations exist where ExacTax does not limit ACRS/MACRS assets: (1) when a client has a short year, and (2) when an asset is a luxury auto.

Luxury Autos (Passenger) In the case of section 179 property coded as listed property or a luxury auto, ExacTax uses the IRS tables instead of the formulas in the IRC to calculate the current depreciation. During the recovery period, the remaining basis of these assets reflects the cost of the asset adjusted by the percentage of business use, less actual depreciation taken. If you enter a section 179 expense that exceeds the limit in the first year, ExacTax adjusts the section 179 amount.

If using MACRS tables, the sixth year limits depreciation to the lesser of 5.76% or the appropriate sixth year limited amount.

Prior Alternative Minimum Tax Depreciation–Federal

Enter total federal prior year depreciation for AMT purposes.


188

Current Alternative Minimum Tax Depreciation–Federal

Enter the current year AMT depreciation if you wish to override the automatic system computation. This amount will be reflected on the supporting statement for AMT depreciation.

If related to a non-passive activity, total depreciation adjustments and preferences will carry to line applicable lines of Form 6251. For passive activities, the depreciation adjustment and preference is incorporated in the passive activity loss computation and the net adjustment is carried to the passive activity line on Form 6251.

Prior Alternative Minimum Tax Depreciation–State if Different

Enter total state prior year AMT depreciation.

Current Alternative Minimum Tax Depreciation–State if Different

Enter the current year AMT depreciation amount if you wish to override the automatic system computation. This amount will be reflected on the supporting statement for AMT depreciation.

California If related to a non-passive activity, total depreciation adjustments and preferences will carry to Schedule P. For passive activities, the depreciation adjustment and preference is incorporated in the total passive activity adjustment for Schedule P.

Dispositions For current year automatic dispositions related to entries on Input Forms 50, 51, 52 and 2106, see Form Asset-Disposal [55A]. You may also use Form Sale to report a disposition, but all amounts must be manually entered there and certain limitations apply. For more information, see Form Sale.

Luxury Auto (Passenger), Listed Property Disposal When a luxury auto or listed property is sold or is a casualty/theft loss that is not replaced, the Cost/basis field on the Form Asset-Disposal [55A] reflects the cost of the asset adjusted for the business use. The depreciation allowed or allowable is the actual prior depreciation.

When a luxury auto or listed property is traded or is a casualty/theft loss that is replaced, the Adjusted basis original asset field on the Form Asset-Disposal [55] reflects the cost of the asset adjusted by the percentage of business use, less actual depreciation taken.

Delete from Proforma To delete this asset from next year’s proforma and from the Next Year’s Depreciation schedule see Form Asset-Disposal [55A]. The asset remains until the disposal method on Form 55’s is changed to Sold / Scrapped [55A], Like-Kind Exchange [55B], or Casualty / Theft [55C].


189

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190

Form Asset [51] - Listed Property / Other

Overview Input Form Asset-Listed Prop/Other [51] is used to enter information for the calculation of depreciation and amortization, and the preparation of Form 4562 for assets that meet all of the following conditions:

listed property or non-listed property with less than 100% business use

not related to a home office

See Form Asset [50] for all regular depreciable property.

Additional pages are available as necessary. Up to six vehicles may be attached to the same activity (i.e. you may have six vehicles to Schedule C #1 and six to Schedule C #2).

Multi-state overflow input is available for this form.

Overflow is not available for expense detail (Additional Vehicle Information section). Limit your entries to the fields provided.

General Depreciation Complete the related form/schedule and asset detail entries for all treatments the same as for Input Form Asset [50]. Make additional entries in the Vehicle/Listed Property (and Other Business %) section based on the asset type:

Listed vehicle

Other listed property

Non-listed property with a business use percentage

Note: If no entry is made in the Vehicle/Listed Property (and Other Business %) section the asset will be treated as non-listed property at 100% business use.

For vehicles only, complete the sections for Vehicle Use, Additional Vehicle Information, Form 4562 Vehicle Questions [This Vehicle] and Form 4562 Vehicle Questions [All Vehicles].

Listed Vehicles In the Type of Property section check the box to indicate the asset type:

Luxury auto (passenger) Use this property type for "passenger automobiles." Passenger automobiles are four-wheeled vehicles primarily used on public roads and are rated at 6,000 pounds unloaded gross vehicle weight or less. (For a truck or van, the gross vehicle weight is substituted for unloaded gross vehicle weight.) The limits for passenger automobiles are applied to assets coded for this property type.

Van or light truck (applies only to assets acquired on or after 01/01/2003) Use this property type for trucks and vans placed in service after 2002 that are not qualified for non-personal use vehicles or are passenger automobiles built on truck chassis, including minivans and sport utility vehicles built on truck chassis.

Note: If Van or light truck is selected for a vehicle placed in service before 01/01/03, ExacTax will default to Luxury Auto (Passenger).

Exceptions for Luxury Auto (Passenger) and Van or light truck property types:

The following vehicles are not considered passenger automobiles.

Ambulances, hearses, or combination ambulance/hearses that are used in your trade or business

Vehicles used in your trade or business of transporting persons or property for compensation or hire

Any truck or van placed in service after July 6, 2003 that is a qualified non-personal use vehicle.

Electric vehicle (must be 100% electric. Does not apply to hybrids) Use the Electric vehicle type for assets that are "electric passenger automobiles." These vehicles are primarily produced by an


191

original equipment manufacturer and designed to run primarily on electricity. The limits for electric passenger automobiles are applied to assets coded for this property type.

Listed vehicle In general, use this property type for any vehicle property that is both:

Not considered a passenger automobile or an electric vehicle, and

Is used for transportation, if the property lends itself to personal use (such as motorcycles, pick-up trucks, and so on).

The luxury auto limits are not applied to the depreciation for the current year for assets that are coded as Listed vehicle.

Sport utility vehicle Use this property type for sport utility vehicles and certain other vehicles. These vehicles cannot elect to expense more than $25,000 of the cost of the vehicle if placed in service after October 22, 2004. This applies to any four-wheeled vehicle primarily designed to carry passengers over public streets, roads, or highways that is not subject to passenger automobile limits and is rated at no more than 14,000 pounds gross vehicle weight.

Exceptions for Sport utility vehicles The section 179 limit does apply to any of the following vehicles:

Vehicles that are designed to have a seating capacity of more than nine persons behind the driver’s seat.

Vehicles that are equipped with a cargo area of at least six feet in interior length that is an open area, or designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment.

Vehicles that have an integral enclosure that fully encloses the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

Note: For more information, see the IRS Form 4562 Instructions

Listed non-vehicle All listed property other than vehicles. Assets with this indication will print on Form 4562, page 2. No special limits are applied to these assets. If the business use is less than 100%, enter the applicable percentage in the Listed Property (and Other) section. Check the applicable boxes in the Form 4562 Client Evidence Questions section.

Note: There is no default response for these questions. If a box is not checked then the corresponding box on the Form 4562 remains blank.

Other (for business use percentage)

All non-listed property where a business use percentage applies. Enter the applicable percentage in the Listed Property (and Other) section. These assets will be printed on Form 4562, page 1.

Additional Vehicle Information Vehicle Use Enter the Total miles and the Business miles to have ExacTax compute the business use percentage or enter your manually computed percentage in the Business use % (Override) field.

Expenses Enter all related operating expenses should be entered on the income statement Form [20].

Form 4562 Vehicle Questions By default ExacTax leaves these questions blank. Check the applicable boxes in the Form 4562 Vehicle Questions [This Vehicle] for each vehicle entered. You only need to complete the questions in the Form 4562 Vehicle Questions [All Vehicles] section once for the entire return. It does not matter which Form 51 you enter this information on.

Section 280F Recapture When current and prior depreciation is present and the current business use percentage drops to 50% or less, an automatic recapture under Section 280F will be computed. If the amount recomputed using straight-line, without Section 179 or bonus


192

depreciation, exceeds the prior depreciation, the excess will transfer to Part V of Form 4797. If an accelerated method is being used, the depreciation method will be defaulted to straight-line with a five-year life.

Note: You must also enter the recapture amount in the Other income section of the related Schedule C, E, F or Form 4835.


193

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/dd/yy)

(mm

/dd/yy)

Investm

ent

Cre

dit

Info

rmatio

nC

reditcodeR

,C,

To

rO

mustbe

enteredin

TaxT

reatment

Measuring

period

beginningdate

NP

Sp

rojectnumber

(18)

Da

teapproved

Measuring

period

endingdate

Begin

ningadjusted

basiso

fbuilding

Qualified

expend

itures

incurred

(mm

/dd/yy)

(mm

/dd/yy)

(mm

/dd/yy)

Investm

ent

Cre

dit

Info

rmatio

nC

reditcodeR

,C,

To

rO

mustbe

enteredin

TaxT

reatment

Measuring

period

beginningdate

NP

Sp

rojectnumber

(18)

Da

teapproved

Measuring

period

endingdate

Begin

ningadjusted

basiso

fbuilding

Qualified

expend

itures

incurred

(mm

/dd/yy)

(mm

/dd/yy)

(mm

/dd/yy)

VIN


194

Form [53] - Other tab

Overview Use this form to enter miscellaneous information.

Date acquired Enter the acquisition date for the current asset if it differs from the in-service date entered at the top of the Asset Detail dialog.

Note: The acquired date is for reporting purposes only and is not used in the depreciation calculations.

Section 168(f)[1] Mark this checkbox if you elected to depreciate this asset using either the units of production method or a method that is not based on terms of years. You must also select a custom method for calculating depreciation from the Method field in the Depreciation tab.

Tracking partner’s outside basis (1065 only) Mark this checkbox if this asset is used to track a partner’s outside basis for a 1065 client. If this checkbox is marked, the asset will not be included on any form printed from UltraTax CS by default.

Include memo asset on balance sheet Mark this checkbox to include this asset in the Balance Sheet Detail report if Memo is selected as the treatment’s depreciation method.

Qualified section 179 real property Mark this checkbox to indicate the current asset is qualified section 179 real property.

Notes

This checkbox is available only for current-year real property assets when the client’s processing period is tax year 2010 or 2011.

This checkbox is available for the current asset if the Tasks > Designate as Real Property option is selected.

This checkbox is automatically marked if one of the following asset classes is selected from the Method/Life Wizard for the asset.

Leasehold improvement (qualified)

Restaurant building improvement

Retail improvement

990 investment property Mark this checkbox to indicate that the current asset is 990 investment property.

Note: This checkbox is available only for 990 clients.

990 PSA code Select the appropriate program service achievement (PSA) code.

Note: This field appears only in the Indirect activity for 990 clients.

Amortization section If you indicated in the Method field in the Depreciation tab that the asset is to be amortized, choose the applicable amortization code from the drop-down list.

GO Zone/168(k) (force) To force an asset to calculate bonus depreciation, select the appropriate type from this field. For details on each type of bonus, see the overview of the GO Zone/168(k) (force) field.

Notes

If you enter a force type in this field and are calculating the AMT and/or ACE treatment for the current asset, you need to choose Tasks > Generate AMT and Tasks > Generate ACE.

Bonus depreciation is automatically calculated for assets placed in service between 9/11/01 and 12/31/04 or 1/1/08 and 12/31/10 for treatments that comply with the section 168(k) bonus and are depreciated by:


195

any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long the MACRS class life has not been elected out.

amortization with 167 - Computer software selected in the Amortization section field in the Other tab, as long as the Computer 167 class life has not been elected out.

Fixed Assets CS automatically calculates bonus depreciation for assets marked as located in the GO Zone between 8/28/05 and 12/31/07 for treatments that comply with the GO Zone bonus and are depreciated by:



Bonus depreciation is automatically calculated for assets marked as located in a Disaster Area after 12/31/07 and occurring before 1/1/10 for treatments that comply with the Disaster Area bonus and are depreciated by:



Memo 1 Use this field to enter a general memo regarding this asset.

Memo 2 Use this field to enter a second general memo regarding this asset.

Mid-Quarter & Section 179 Force Options button Click this button to open a dialog in which you can do the following tasks.

Force an asset to be included in or excluded from the mid-quarter determination.

Force an asset to calculate using the mid-quarter convention.

Force an asset to be considered eligible section 179 property.

Prevent an asset from being considered eligible section 179 property.

Credit Information button Click this button to open a dialog in which you can enter investment credit, Hawaii excise tax credit, and Alternative motor vehicle credit information.

Note: This button is available if one the following conditions are present.

credit code R, C, I, A, L, N, or O is entered in the Credit field in the asset’s Depreciation tab

1040 clients are calculating a state treatment of HI, ID, NY, OR, or RI

1120 clients are calculating a state treatment of HI, ID, or WI

1065 clients are calculating a state treatment of HI

If an association name is followed by an asterisk and is displayed in blue, the association is used for the UltraTax CS personal property tax return for the state in which the current asset is located.

Note: If you are using three or fewer associations, no fields appear in the Associations group box.


196

Bonus Depreciation Elections

Elected All Elected All

Qualified 50%Elected 30%Bonus

6IBONDEP 01 10/31/16

Use this form to indicate the asset classes that have elected out of the bonus depreciation per IRS Code section 168(k). When no election isindicated, the system will assume that bonus was taken for all qualified assets in that year's class. To stop bonus from being assumed on aindividual qualified asset, mark the asset as 'used' or enter 'P' in the Bonus code on the individual asset.

ALL SYSTEMS

Asset class: Elected Out of50% Bonus

MACRS 3-YearMACRS 5-YearMACRS 7-YearMACRS10-YearMACRS 15-YearMACRS 20-YearMACRS 25-YearMACRS 27-YearMACRS 39-YearComputer Software (sec. 167)

Elected All

Asset class: Elected Out of Bonus2002 Qualified 30%


Elected Out of BonusQualified 50% (after 5/5/03)

Elected 30% Bonus



Elected Out of BonusQualified 50% (after 5/5/03)

Elected 30%Bonus



Elected Out of Bonus

Elected All

Elected All Elected All Elected All

Elected All Elected All

542016

ExacTax, Inc. 54

Asset

Elected All

2007

(2007applies to

1120/1120S/

1065/1041only)

Elect Out of Bonus

2010Qualified 50%/100%

* When "Elect All" is checked, the election statement is automatically printed. If only some classes are elected, enter election codes on Form Elect {2}

Elect 50% Bonus

orororororororororor

2008 20092011

Elect Out of BonusQualified 100%

Elected Out of50% Bonus

Elected Out of50% Bonus

2012Elect Out of Bonus

Qualified 50%

Elect All

Elected All *

*

Elect Out of BonusQualified 50%

Elect All*

2013

2014Elect Out of Bonus

Qualified 50%

2015

Elect All*

2016


197

Form [54] — Forms 4562 – Bonus Election

Overview

Use Form Misc to enter information that transfers to Form 4562.

Electronic filing note: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

Bonus Depreciation Election

Use this section to enter bonus depreciation election information.

Property Class: Elect… Bonus Depr These elections can be made for the applicable property class lives that are listed on the asset input. When you make an election in the Bonus Depreciation Election dialog, Exactax marks the Elect out of 50’ Bonus Depreciation field. To make an election and mark the checkbox(es) for the election(s) you want to make.


198

Property 1

Property 2Property 1

Desc

ORSingle asset #

A

4797 Part III:

Property 2

Net gain or loss

Multiply by applicable % (xx.xxx)

Disposal (current year automatic dispositions)

Sale:

Enter the Unit # that the asset(s) belongs to. For other dispositions use SALE {43A}. For prior year installment sales use InstPY {43D}.

Method of disposition (Must be entered) *

Date disposed (Must be entered - Various is not allowed)

Property 1

Gross proceedsExpenses related to sale

Depreciation allowed (Override)Overall business use % (xx.xxx)

Type of property (Default=1245) †

(Enter one transaction per column)

Section 1255

Section 1250

Additional depreciation after 1975

Additional depreciation 1970 – 75

Soil, water and land clearing expensesMultiply by applicable % (xx.xxx)

Intangible drilling costs/development costs, etc.Applicable % of payments excluded from income

Section 1254

Installment Sale (current year):Mortgage and other debts buyer ASSUMED from seller.Total current year payments received: (excluding interest)Total ordinary income to recaptureRelated party name: Property 1

Address:

Taxpayer identification number:

Date of second sale: (mm/dd/yy)

Marketable security

Special condition code: ††Selling price of property sold by related party:Explanation:

6IDIS1 02 12/20/16

Page #

ALL SYSTEMS

City:

State:Zip:

All Transactions(Method and Date

Required)

Sale to related party (disallowed loss)

State Information:Does not qualify for installment treatment (MA, NH and PA)Qualifies for Proprietor Business Profits Tax (NH)Qualifies for capital gains deduction (IA)

Section 291 (Corporations only)

Asset

55A

55A2016

ExacTax, Inc.

Cost or basis (Automatic from asset detail)

Depr allowed (Automatic from asset detail)

(For method O entermethod & date only.For method R enter

method only.)

Section 1252

Proceeds reported on Form 1099

IncC

Specify Asset #sALL Assets OR

= Not reported on Form 4797= Trade or business property= Real property= Not used in trade or business= Cattle & horses

N12451250NOT UC

† Type ofproperty:

= Force 4797 Part I, long-term= Force 4797, Part II= Force 4797 Part III, long-term

123

†† Special condition: S = Sale or exchange of stock, I = Involuntary conversion, D = Death of original seller, N = Non-tax avoidence transaction

ORSingle asset #

F Rent DescInc2106 4835


Property 2Property 1

Property 2For prior year installment sales

use Form InstPY {43D}.

Prop

1

Prop

2Partnerships & S Corporations: Assets with Sec 179 must be entered separately as individual dispositions.

Property 2

Property 1

Property 2

Property 1

Property 2

Property 1

Property 2

Ownership % entered onForm RENT {31A}, ZIP 21,will be applied to all entrieson this form. Business use% entered on Form RENT,ZIP 22, is NOT applied toany entries on this form.

* Method of disposition:S = Sold or scrappedO = Out of service

(depreciation to date)R = Retired (no

depreciation this year)

Qualifies for capital gains deduction (ID)Sale of farm or sale of standing timber (VT)

A C

F 2106 4835Rent

Apply bus use % to gross proceeds and expenses (Only assets on {51} or {52}RLRaised LFD

= Raised cattle & horses= Livestock other than cattle & horses= Raised livestock not cattle & horses= Farmland held less than 10 years= Disposition of Section 126 payments


199

Form [55A] — Forms 4797 and 6252

Overview

Use Form Sale to enter asset sale information for Form 4797 (Regular and AMT) and current-year installment sales for Form 6252 (Regular and AMT). Use Form Misc to enter additional information needed to calculate Form 4797 and Form InstPY to enter prior year installment sale

information. Use Form K1Sale to enter sales of Section 179 property separately stated on Schedule K1.

Notes

Electronic filing: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

ExacTax uses the dates of acquisition and sale entered in this form to determine short- versus long-term transactions and the appropriate part of Form

4797, Form 6252, or Schedule D in which to report sales.

Form Sale is designed to enable you to enter asset sale information in one place and have ExacTax determine the proper category (or categories) in which to report each sale on the return. Because the information entered in Form Sale may be reported on either Form 4797 or Form 6252 there is not a one-to-one relationship between the sale form and either form. Therefore, clicking to Forms view from Form Sale may not always return you to the

correct form.

Overrides

To force ExacTax to print Forms 4797 and 6252 (for current-year sales), enter the asset information in Form Sale. Then override the asset information on the form if needed.

Important!

If you enter asset information directly in Form 4797 or Form 6252 and not in Form Sale, ExacTax does not print the form.

Asset information that you enter directly in the form does not transfer back to Form Sale. Do not enter asset information directly in the form. Enter sale information in this form instead.

The information in this section applies to all of the forms used to report the sale of assets.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business

unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, credits, and asset detail) for the activity.

Description

This description, which transfers automatically from the Form 51, is used as the unit description. This field is mandatory.

Treatment

The information in this field controls where the information appears on Form 4797 or Schedule D. The table that follows lists the treatment codes and shows where ExacTax places the information. You can either enter these codes directly. Note that the asset module automatically enters code 1, 2, or

3 based on the nature of the asset. You can override the code that ExacTax enters, if desired.

Force Code Reporting location of asset

1 Form 4797, Part I, Long-term

2 Form 4797, Part II


200

Force Code Reporting location of asset

3 Form 4797, Part III, Long-term

S Schedule D, Short-term installment sales

L Schedule D, Long-term installment sales

M Schedule D, 28% rate installment sales

State

If you are processing a state return, enter the two-character postal code for the state to which this unit belongs. This code is used by the various state programs to help determine in-state and out-of-state amounts.

Notes

A postal code entry is required for proper state processing.

For New Hampshire returns, ExacTax uses the two-digit state postal code for the location of each business activity to process apportionment Forms BET-80 and DP-80.


Enter X to indicate that the asset sold qualifies as Section 1250 property. ExacTax calculates Unrecaptured Section 1250 gain, if applicable, and uses the amount in the tax calculation using maximum capital gains rates.

Unrecaptured Section 1250 gains from Forms 4797 and 6252 transfer to the Unrecaptured Section 1250 Gain Worksheet. This worksheet calculates

the total unrecaptured Section 1250 gains to be reported on Page 2 of Schedule D.

Sale of auto asset

For employee business expense activities using supplemental business expense (SBE) allocation, mark this field if the sale is related to an auto asset. ExacTax uses this information to include the sale of the auto asset for passive and at-risk calculations when supplemental business expense allocation

is present in Form 2106. For all other activities, this field is optional.

Gross proceeds…

Enter X in this field to indicate that this sale was reported on Form 1099-S or 1099-B. ExacTax enters the total of the gross sales from all sales

marked on line 1 of Form 4797.

Buyer’s part of real estate tax code/amount

This field is used to report the amount of real estate reported on Form 1099-S Box 5. This box reports real estate taxes charged to the buyer at the settlement. Report this amount on the return by entering the appropriate code in the code field.

Code Condition Result

1 Real estate taxes already paid; reduce real estate taxes deducted

Will reduce Schedule A line 6, but not below zero

2 Real estate taxes already deducted; report as other income Will be reported as other income on 1040 line 21

Note: If there is no code entered in the code field, the amount field will not be reported anywhere on the return.

1099-S property in asset detail, do not report Source Data Entry data


201

When an X is entered in this field, all information on the form is ignored and not reported on the return. This field should be used when information was shared from the Source Data Entry utility for an asset in the asset module (for example, 1099-S entered in the Source Data Entry utility for rental

home entered in asset detail). The asset disposal should be entered in the asset tab.

Disposition due to casualty / theft

Enter X in this field if you want ExacTax to transfer the gain to Form 4684, Section B, line 33. Only mark this field when code 3 is entered in the Treatment field. Please refer to the instructions for the Treatment field in this form.

Postponed gain due to casualty / theft

Enter the amount of postponed gain due to casualty or theft. ExacTax will reduce the amount of any calculated gain by the amount entered in this

field.


If this field is marked and the sale is a loss, ExacTax will enter an item to reverse the loss on Form 4797, line 2 or line 10 (depending on the holding

period).

State use

If applicable, enter a state use code or select a code from the fieldview. The codes that are available in this field are specific to the state postal code

entered in the State field. If state use codes are not applicable to the entered state, this field will be disabled (shaded).

For Massachusetts, Pennsylvania, and New Hampshire returns, enter 1 in this field for a unit that does not qualify for installment treatment.

For New Hampshire returns, enter 2 in this field if the unit qualifies for Proprietorship Business Profits Tax.

For Iowa returns, enter 3 in this field if the unit is eligible for Qualifying Capital Gains Exclusion. This amount will transfer automatically to ExacTax/1040-IA Form IASale.

For California returns, code 4 is not applicable for this form.

For Idaho returns, enter 5 in this field if the unit qualifies for capital gains deduction. This amount will automatically transfer to ExacTax/1040-ID Form CG - Idaho Capital Gains Deduction.

For Vermont returns, enter 6 in this field if the unit qualifies for the 40-percent capital gains exclusion for farm or standing timber sales.


If you are completing this form for an installment sale, enter X to delete this form during next year’s proforma.

If "X", summary data entry…

Sale Information

Use this section to enter general sales information.


Enter acquired and sold dates in MM/DD/YY format. Enter V to print the word Various for the date on the return; enter I to print Inherit.

Commissions and other expenses for sale

Include fixing-up expenses in this field for Form 6252. ExacTax adds amounts entered in this field to the basis for 4797 dispositions. This amount is reported separately for installment sales.

Depreciation allowed or allowable


202

The depreciation amount in this field should include the amount of any Section 179 deduction. Any amount transferred from the Form 51 automatically includes Section 179.

Alternative minimum tax gain / loss adjustment

Enter the difference between the gain or loss reported for the regular tax and the gain or loss calculated for the AMT. ExacTax uses this amount to calculate the disposition of property reported on AMT versions of Forms 4797 and 6252.

Form 4797, Part III — Recapture

This section pertains to Form 4797, Part III. The numbers shown to the left of the items, such as 25(a), refer to the line numbers on Form 4797, Page 2. Do not use this section to enter assets that were sold at a loss.

If data is not entered in this section and the Section 1250 property field in this form is blank, ExacTax will default to treating a calculated gain as

from the disposition of Section 1245 property.

Applicable percentage

When recapturing depreciation already taken, the applicable percentage is 100 percent unless you enter a value in these fields.

Form 6252 — Current Year Installment Sale

Use this section to enter information for current-year Form 6252 transactions for Parts I and II. Enter prior year installment sales in Form InstPY.

Current-Year Installment Sale

When using this section in the year of sale, enter applicable information in the following fields: Mortgage and other debts the buyer assumed and Total current year payments received. The Mortgage and other debts the buyer assumed field must include the amount of any indebtedness assumed. ExacTax prints Form 6252 if an amount is entered in this field, if it is the year of the sale, or if it is a related-party transaction and Part III is

required. Enter 0 (zero) in this field to have ExacTax print Form 6282 when there are not payments in the current year.

Form 6252 — Related Party Installment Sale Information

Use this section to enter related-party installment sale information.

Date of second sale

ExacTax uses the date of the second sale to complete Form 6252, Part III, Related Party Installment Income. If the second disposition occurred less than two years before the first disposition, additional income may be recognized on Form 6252.

Special condition if applicable

Enter the applicable code if necessary. The available codes are listed in the table that follows and in the fieldview.

Code Condition

1 Sale or exchange of stock

2 Involuntary conversion

3 Death of original seller

4 Non-tax avoidance transaction


If the non-tax avoidance exception applies to the disposition, enter the explanation as required by Form 6252 in the attached field. If there is data in the field, ExacTax marks the appropriate checkbox on the form and prints the statement with the return.


203

Note: If you enter information in the attached field and enter code 1 or 2 in the previous field, ExacTax marks two exception codes on Form 6252.

Selling price of property sold by related party Enter an amount in this field if the related party resells the property within two years of the original sale.


204

Do NOT enter the same assets here and on Form 4562 Disposal {55A}. Assets entered here will create a new asset that will bedepreciated based on the old asset type. If no new asset number is entered in field provided, the next number available will be used. Do notmix different asset types, such as building and land, in the same column or incorrect treatment may result. When an exchange involves 2 ormore rentals given up, Form {43B} must be used. Ownership % entered on Rent {31A} will be applied to all entries. Business use %entered on Rent {31A} will not be applied to any entries.

A RentC F 2106 4835 Inc

Asset number for new asset (use 1000 & higher)Description of new asset received

- OR- Transfer new asset to:

Asset

EXCHANGES

Disposal (Like-Kind Exchange)

Cash paid *

FMV of other property given up (uncommon)

COMMON

Adjusted basis of other property given up (uncommon)

Liabilities (including mortgages) given up (uncommon)

Exchange expenses incurred:

FMV of (Not like-kind) property received (uncommon)

Related Party Exchange:Related party nameAddress

Taxpayer identification numberRelationship to you

Special condition codeYou disposed of property received this year

ALL SYSTEMS6IDIS2 01 11/01/16

Date property was identifiedDate like-kind property was received

Treat entire basis as a current yr acquistion (Election 1.168(I)-6(I))

CityStateZip

Related party sold property received this year

Liabilities assumed (uncommon)

Date disposed (Must be entered - No various) (mm/dd/yy)

Method of disposition

Cash received *

Like-Kind

AllTransactions(Date Required)

* (Do NOT enterboth CashReceivedand Paid)

1) Other Property Given UP (G + H + A – E)

Like-Kind Exchange Worksheet:

2) Net Liabilities (E – G – H –A)3) Unused exchange expense (I - 2 + C + E)4) Total amount given up (L – M + 1 + 3)5) Unlike property received (C + E – I)6) Liabilities assumed (F – G – H – A)7) Total unlike property received (5 + 6)8) Total amount realized (7 + K)

55B

55B2016

ExacTax, Inc.

How to handle new asset created in the exchange:

Delete (Default)

1)2)3)4)5)6)7)8)

(D)

(A)(B)

(C)

(H)

(E)(F)(G)

(I)

(K)(L)

(M)

Explanation

Type of property:

(D = Death of original seller, I = Involuntary conv, N = Non-tax avoidence transaction)

1 = Force to Form 4797, long-term, 2 = Force to Form 4797 - Part II1245 = Trade or business property, 1250 = Real property,

ORSingle asset #

AProp

1

C F Rent


UNCOMMON

Total FMV of like-kind property received:Adjusted basis of original asset (Force):Section 121 exclusion (uncommon):

9) Realized Gain (8 – 4)10) Recognized Gain (Smaller of 5 or 9)11) Basis of property received (Amount from line 4)

9)10)11)

Not less than zero

Not less than zeroNot less than zero

Not less than zero

(J)FMV of non sec 1245 like-kind property received (include in total K below)

Installment obligation received

(mm/dd/yy)(mm/dd/yy)

1065 /1120

Description of exchange

Inc2106 4835


205

Form [55B] — Like-Kind Exchanges

Overview

Use Form 8824 to enter like-kind exchange information for Form 8824.

Form 8824 — Like-Kind Exchanges — General Information

Use this section to enter general information about the like-kind exchange.

Notes

Electronic filing: If you are filing this return electronically, there are data-entry guidelines you need to follow to prevent the return from being rejected.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, credits, and asset detail) for the activity. The

following table lists the available forms and the folders in which they are located.

Folder Form description

Business Schedule C

Rental Schedule E, Page 1

Farm Schedule F

FarmRent Form 4835

K1 P/S Schedule K1 S-corp / Partnership

K1 E/T Schedule K1 Trust / Estate

Itemized Schedule A, 2106, 8829

Because there are multiple forms available in the Itemized Deduction folder, you must enter the form information. The available forms that you can enter in the Form field are listed in the table that follows and in the fieldview.

Form code Form description

A Schedule A

2106 Form 2106

H-SchA Home office worksheet - Schedule A

H-2106 Home office worksheet - 2106

H-Misc Home office worksheet - Misc

Misc Miscellaneous

M Miscellaneous

Notes

You can leave the Form and Unit# fields blank in forms located in the Per Sale folder. The only form code available for these forms is M.

Use Form 8824, located in the Per Sale folder, to enter information about a sale that is not connected with a business unit activity.

Property given up


206

This description, which transfers automatically from the Form 51, is used as the unit description and reported on the form.

State

If you are processing a state return, enter the two-character postal code for the state to which this unit belongs. This code is used by the various state programs to help determine in- and out-of-state amounts.

Note: A postal code entry is required for proper state processing.

Property received

Enter the description of the property received. This description transfers from the Form 51 and is reported on the form.

Sale of auto asset

For employee business expense activities using supplemental business expense (SBE) allocation, mark this field if the sale is related to an auto asset. ExacTax uses this information to include the sale of the auto asset for basis, passive, and at-risk calculations when supplemental business expense

allocation is present in Form 2106. For all other activities, this field is optional.

Section 121 exclusion

Enter the amount of Section 121 exclusion for the property given up. The amount will be reported as "Section 121 exclusion" and will adjust the Form 8824 realized gain reported on line 19. This amount may also adjust amounts reported on lines 20 and 25. Please refer to the Form 8824

instructions for additional information.

For California returns, code 4 is not applicable for this form.

If "X", summary data entry…

Part I — Information on the Exchange

The dates in this section transfer to Part I of Form 8824.

Date…

Enter the date in MM/DD/YY format. Or, enter VARIOUS or 999999 to have ExacTax print "VARIOUS" for the date on the return. The date will be reported on Form 8824, Part I. ExacTax produces a diagnostic if the period between the transfer and identification dates exceeds 45 days or if the

period between the transfer and received dates exceeds 180 days.

Note: If ExacTax is unable to calculate a holding period (because, for example, a date field is blank or VARIOUS is entered in the Date like-kind property given up was acquired or Date property transferred to other party fields), ExacTax defaults to a short-term treatment. The asset

treatment can be changed by selecting a treatment in the Treatment field in this form.

Part III — Computation of Gain and Basis

Use this section to enter gain and basis calculation information.

Computation of gain and basis

The information entered in these fields will be reported Form 8824, Part III and will be used to calculate the realized gain or loss, recognized gain, and basis of like-kind property received.

Important! ExacTax does not automatically report the gain or loss recognized on non-like-kind property used in the exchange to the tax return. To report the gain or loss on the non-like-kind property used in the exchange, enter the exchange information for those items separately in the appropriate form based on the correct reporting of the exchange. The gain or loss recognized on non-like-kind exchange property is reported on Form

8824, line 14.


207

Fair market value of non-section 1245 property received

Enter the fair market value of Section 1245 property if the Section 1245 property received was given up in addition to the like-kind property. Section

1245 property is described in Internal Revenue Code Section 1245.

Adjusted basis of like-kind property given up, etc.

Enter the adjusted basis of like-kind property given up in the exchange. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded). Information on the adjusted basis of like-kind property given up in a pass-through entity

should be reported in the fields under the heading Adjusted basis of like-kind property from pass through entity.

Total potential ordinary income under recapture rules

Enter the total potential ordinary income under the recapture rules in this field. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded). Information on the total potential ordinary income under recapture rules is calculated based on entries in the Depreciation allowed or allowable excluding Section 179, Section 179 expense deduction passed through, and

Section 179 carryover.

Total potential unrecaptured section 1250 gain

Enter the total potential unrecaptured Section 1250 gain in this field. If exchange was made at a separate entity level and is being passed through to the taxpayer on a K-1, this field will be disabled (shaded).

Adjusted basis of like-kind property from pass through…

For exchanges at a separate entity level that are passed through to the taxpayer on the K-1, enter the cost or other basis of the property given up, the depreciation allowed or allowable excluding Section 179, the Section 179 expense deduction passed through, and the Section 179 carryover

passthrough in the applicable fields. If the exchange is not in the K-1 P/S folder, these fields will be disabled (shaded).


Use this section to enter related-party exchanges. ExacTax uses this information to answer the related-party questions on Form 8824. This data proformas for two years after the year of sale, unless either party has resold the like-kind property.

Note: ExacTax transfers gains to the appropriate form based on the data entered.

During this tax year…

Select code 1 Yes or 2 No in response to the question.

Note: Information entered in Form 8824 proformas for two years after the year of the exchange, unless either party has resold the like-kind property.

In that case, the deferred gain or loss is reported on the return in the year of disposition.

Special condition if applicable

Enter the applicable code if necessary. The available codes are listed in the table that follows and in the fieldview.

Code Condition

1 Death of either party

2 Involuntary conversion

3 Non-tax avoidance transaction


If the no tax avoidance exception applies to the disposition, enter your explanation as required by Form 8824 in the attached field. If you enter data in this field, ExacTax marks the appropriate checkbox on the form and prints the statement.


208

Note: If you enter information in the attached field and enter code 1 or 2 in the previous field, ExacTax marks two exception codes on Form 8824.

Exchange is prior year like-kind exchange

Enter X in this field if the exchange occurred in a prior year. Form 8824 is required to be filed two years after the year of exchange when the exchange is between related parties. Marking this field will ensure that Form 8824 is reported correctly in subsequent years.


209

AProperty 1

DO NOT use this form for personal casualty losses. Use Form 4684P {75A} for personal casualty losses.Use Form 4684B {43E} for manual business losses.

(Election 1.168(I)-6(I))

No ReplacementInformation

No ReplacementNo Replacement

FMV of non like-kind property received

Casualty/Theft - Business/Income Producing Properties (automatic)

Sale

Enter the Unit number that the asset belongs to. Asset must be included on a depreciation form in the return.

Type of Casualty/Theft:(Must check ONE type only)

Date disposed (Must be entered - No Various)

Property 2 Property 3Property 1

Adjusted basis of original assetInsurance reimbursement received

Reimbursement to pay off mortgages or liensExpenses incurred obtaining reimbursement

(Enter one transaction per column)

5IDIS3 01 10/26/15

(continued)

Page #

ALL SYSTEMS

All Transactions(Type and Date

Required)

Casualty/theft event description

Asset

55C

55C2015

ExacTax, Inc.

Reimbursement entitled to but not receivedGrants, gifts and other payments

Replacement

No Replacement

Coverage if not filing an insurance claimDeductible if not filing an insurance claimFMV before casualty/theft

FMV after casualty/theft

Replacement Replacement

Acquired:

Recognized gain/loss


New asset number for replacement asset

Cost if purchased

ReplacementInformation

(Must checkCasualty/Theft-

Replacement aboveto make entries in this

section)

Disaster area loss to be taken in previous tax yr

Description of new asset received

Realized gain/loss

Postpone gain


Real Property(Section 1250 only)

Multiply by applicable % (xx.xxx)

Additional depreciation after 1975

Additional depreciation 1970 – 75Section 291 (Corporations only)

Acquired Method: Purchased, Related party, or Received as reimb

(use 1000 & higher)

Recognized gain/loss


Disaster area loss to be taken in previous tax yr

Elect to postpone gain

Property Type (B=Business, I=Income, E=Employee)

Property Type (B=Business, I=Income, E=Employee)

(Must check Casualty/Theft-No Replacement above to

make entries in this section)

Treat entire basis as current year acquisition(Election 1.168(I)-6(I)) (Election 1.168(I)-6(I))

Postpone gain codes: N = None, U = Up to replacement, E = Entire

AProperty 2

A ASSET #Inc #4835 #2106 #Property 3

Only one asset may be entered per column for assets that are part of the same event, enter the same event description.

FMV after Casualty/Theft

ASSET #Inc #4835 #2106 #Rent #C # F #

Rent #C # F # ASSET #Inc #4835 #2106 #

Rent #C # F #

Enter asset number from Form 50, 51, 52 or 72


210

Form [55C] — Business Casualty / Theft Loss

Overview

Use Form [55c] to complete Form 4684, Casualties and Thefts. Enter information for each casualty or theft occurrence.

If there are more than three assets lost in the casualty or theft, add a second unit of Form 4684B for the fourth and additional assets. Enter the same number in the Casualty/Theft number field for assets lost in the same casualty or theft.

ExacTax uses the dates of acquisition and sale entered in this form to identify short-term and long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sale.

Asset transfer

Data entered on the asset form automatically transfers to the appropriate field(s) on this form. You can overrule the transferred amount by entering the appropriate amount in any field.

Form 4684 — General Information

Use this section of the form to complete general information about the casualty or theft.

Unit / Form

These fields contain information about the business unit activity. ExacTax uses this information to gather and coordinate information for the business unit activity. For example, these fields enable ExacTax to link information (such as income, loss, sales, and asset detail) to the activity. The following table lists the available forms and the folders in which they are located.

Folder Form description

Business Schedule C

Farm Schedule F

Farm Rental Form 4835

Itemized Deductions Schedule A

K1 1065, 1120S Schedule E, Page 2

Rent & Royalty Rent / Royalty

Business / Income Producing Properties

Use this section to complete Form 4684, Section B.

Description property…

Enter a description of each property. A property description is required for the calculation of the property’s corresponding fields in this form.


211

Asset number

The asset number will automatically transfer from the Form 51. The asset number will not transfer to the return, but will serve as a link to the data in the asset module.

Form 8829 home office number

The home office number will automatically transfer from the Form 51. The home office number will not transfer to the return, but will serve as a link to between Form 4684, Form 8829, and/or the Home Office Worksheet.

Property type

Enter 1 to indicate trade or business property, 2 to indicate income-producing property, or 3 to indicate employee property. This entry determines which column is used to report losses for the casualties or thefts in Part II of Section B.

Force holding period

ExacTax determines the short-term or long-term holding period based on the dates entered in the Date acquired and Date of casualty or theft fields. To change the holding period, enter 1 for short-term or 2 for long-term.

Note: If you enter Various in either date field, ExacTax defaults to short-term.

Gain reported on Form 4797, Page 2

Enter X if the gain on the casualty or theft was reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III, when there is a long-term gain from the casualty or theft of depreciable property. The casualty or theft also needs to be entered in Form Sale as well as in Form 4684B. Be sure to enter X in the Disposition was due to casualty/theft field in Form Sale to report the casualty or theft. If part or all of the gain must be recaptured, the capital portion of the gain will be reported on Form 4684, line 33, instead of Form 4684, line 34. The ordinary portion will be reported on Form 4797, line 13.


Enter X if you choose to postpone the entire gain on the casualty or theft, and either the replacement property was not acquired in the current year or only a portion of the replacement property was acquired in the current year. ExacTax proformas the asset information in Form 4684B to Form 4684PY in the following year.

Note: This field will be ignored if the Property acquired from related party field in the Replacement section of this form is marked.

Date acquired

Enter the date each property was acquired. Enter I or 999998 in the Date acquired field to designate an asset as inherited. ExacTax treats this as a long-term holding period.

Note: If you enter Various in the Date acquired field, ExacTax defaults to a short-term treatment. You may specify the holding period by using the Force holding period field.

Cost or adjusted basis

Enter the cost or adjusted basis before accumulated depreciation.


212


The accumulated depreciation amount in this field should include the amount of any section 179 deduction. This amount will be used by ExacTax to calculate the cost or adjusted basis of the property reported on Form 4684, Part I.

Total net reimbursement

Enter the insurance or other reimbursement expected or received that is related to each property. Include any coverage available even if a reimbursement claim is not filed.

FMV before / after loss

Enter the fair market value (FMV) of the properties before and after the loss.

Note: If the FMV after loss field is blank, ExacTax assumes that the casualty or theft totally destroyed this property. In that case, ExacTax calculates the loss without taking into account any decreases in fair market value. ExacTax allows an entry of zero in the FMV after loss field.

AMT gain / loss adjustment

Enter the alternative minimum tax gain or loss adjustment. ExacTax uses this amount when calculating the adjusted gain or loss reported on Form 6251.

Business / Income Producing Replacement Information

Use this section to enter replacement property acquired in the year of the casualty or theft.

Description replacement property

Enter a description of the replacement properties. ExacTax prints this information in a postponed gain statement attached to Form 4684.

Property acquired from related party

Enter X in this field if the replacement property was acquired from a related party. ExacTax will recognize the entire gain in full in the year of the casualty or theft.

Date acquired

Enter the date the replacement property was acquired. ExacTax prints this information in a postponed gain statement attached to Form 4684.

Note: If you enter Various in the Date acquired field, ExacTax defaults to a short-term treatment. You may specify the holding period by using the Force holding period field.

Cost of replacement property

Enter the cost of the replacement property. ExacTax prints this information in a postponed gain statement attached to Form 4684.


213

†Election[§ 3] Taxes not

entered elsewhere

IncomeType*

† Election

1 = Other exp (grantor)2 = Medical exp (grantor)3 = Utility expense (grantor)

6FDED 01 11/07/16

Form 4952 - Investment Interest Expense

Adjustmentsto Form 4952

amounts

Amount to include ininvestment income if not 100%

Treat all long-term capital gains and qualified dividends as investment income . . . . . . . . . . . . . . . . . . . . . . . . .

Net operating loss carryback (Amended Return Only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount [1]

Deduct Deductions and Investment Interest

FIDUCIARY

Description (50)#

[§ 1] Interest

[14]

Corpus(xxx.xxxx)

Description (35)# IncomeType*

Address (35)# Corpus(xxx.xxxx)

[§ 2] Seller financed interestAmount [2]Name (20) SSN

Amount [3]

InvestmentInterest

IncomeType*

Amount [5]Description (50)# Corpus(xxx.xxxx)

IncomeType*

[§ 5] Fiduciary fees

[§ 6] Attorney and accountant fee


IncomeType* Admin


IncomeType*Miscellaneous deductions

subject to 2% floor . . . . . . .

AGI for miscellaneous itemized deductions subject to 2% floor (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total [11]Description (36)#

Estate tax deduction . .

Exemption (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]

Amount [13]Description (36)# Code††Other deductions for allocation tograntors . . . . . . . . . . . . . . . . . . . . . . .

[20]

Gross income from investments . . . . . . . . . . . . . . . . . . . . . . . .Net gain from disposition of investments . . . . . . . . . . . . . . . . . .Net capital gain from disposition of investments . . . . . . . . . . . .

[18][19]

Long-term capital gains . . . . . . . . . . . . . . . . .Qualified dividends . . . . . . . . . . . . . . . . . . . .


IncomeType*

[§ 7] Other deductions notsubject to 2% floor

* Income Type Codes:INT = InterestUSI = US interestDIV = DividendsUSD = US dividendsQDIV = Qualified dividendsESBT = Electing small business trust

** Tax Type Code:1 = Other taxes2 = State/local tax3 = Property tax4 = RE withholding

PostalCode

PostalCode

STG = Short-term capital gainLTG = Long-term capital gain1231 = Section 1231 gainsNON = Nontaxable incomeTE = Tax-exempt income typeTAX = Taxable income types only

Overflow # 2016 70

ExacTax, Inc. 70

TaxType**

Corpus(xxx.xxxx)

Deduct sales taxes instead of state estimates and state withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment expenses (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[25]

††Code:

B = Claim on both Form 1041 & 706; amending return laterT = Claim on Form 1041; waive right to claim on Form 706

†Election

†Election

†Election

†Election

†Election

†Election

[21]

[§ 8]

[§11]

[§13]

[4]

[9]

AGI for electing small business trusts (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10]

[23][24]

[26][27]

ESBT Non-ESBT

Capital Gainsin IRD

Qualified Divsin IRD

[22][28]

Trustee fee charged per contract (Form 1041-QFT only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [16]

OTH = Other incomeORD = Ordinary businessRRE = Rental real estateORE = Other rental income

[15]Net operating loss carryback for electing small business trusts (Amended return only). . . . . . . . . . . . . . . . . . . . .

[17]

[29]


214

Form [70] - Deductions and Investment Interest

Overview

Use this form to enter information for deductions and the Form 4952 investment interest expense deduction.

Deductions

Enter the deduction amounts. Use the fields to enter multiple items and codes to properly classify the deductions. If you do not want the descriptions proforma’d and no special codes are needed, enter the amount directly on the input form. The following information describes how the entries in the fields affect the calculation of the federal and state tax returns.

Income Type: Enter a code to directly allocate the deduction to a particular income type.

Corpus Percent: Enter a percentage in XXX.XXXX format if some or all of an item is allocable to corpus rather than to income.


Amount: ExacTax calculates the indirect amount allocable to tax-exempt income (nontaxable income, tax-exempt interest, and tax-exempt dividends) on the Allocation of Deductions for Tax-Exempt Income Worksheets. The direct allocations to tax-exempt income and the indirect amount allocated are subtracted from the amounts in this column, and the remaining amount transfers to the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227.

Election: If you are claiming deductions on both Forms 706 and 1041 or waiving the right to claim expenses on Form 706, enter a code to generate one of the following elections.

Code Enter Header…

B Deduction for Estate Administration Expenses

T Waive the Right to Claim Expenses on Form 706 Note: All of the deductions with the same code will be listed in the applicable election.

Interest

Enter the amount of interest expense. Use the field provided to enter multiple items and codes to properly classify the deduction. If you do not want the descriptions proforma’d and special codes are not needed, enter the amount directly in the input form. The following information describes how the entries in the field affect the calculation of the federal and state tax returns.



Investment Interest: Enter X to transfer the interest amount to Form 4952, line 1.




215





Seller financed interest

Enter any seller-financed interest paid. The name, address, Social Security number, and federal amount print in a statement for Form 1041, Page 2, Other Information, Question 5. The following information describes how the entries in the field affect the calculation of the federal and state tax returns.








Taxes deduction: Not entered elsewhere

Enter any taxes withheld or paid that you have not entered elsewhere. The tax expense that prints on the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227 includes amounts in this field as well as the following:

State-estimated taxes on Form StPmt with dates in the current year. If you enter the state-estimated tax amount in the Total field, ExacTax assumes that 75 percent of the amount is deductible in the current year.

State taxes withheld from interest, dividends, and other income on Form Income in the Income folder.

State tax withheld and local tax withheld on Form 1099R, W2, or W2G in the Income folder.

State withholding entered in the Other withholding field on Form PayExt in the Payments folder.

Foreign taxes paid if entry in Report all foreign tax as a deduction field in the Form 1116 - Foreign Tax Credits section on Form OthCr in the Credits folder.

State withholding on Form K1-2 in the K1 1065, 1120S folder.

Trust paid state estimates on Form K1T-2 in the K1 1041 folder.

Notes


216

If you enter X in the Taxes deduction: Deduct sales taxes instead of state estimates and state withholding field on this form, ExacTax does not include state and local estimated taxes and withholding in the deduction for taxes. Enter the sales tax amounts in this field. If you enter 2 in the Tax Type field, ExacTax/1041 states treat the amount as state and local taxes for adjustment and deduction calculations.

Taxes are not allocated to tax-exempt income (nontaxable income, tax-exempt interest, and tax-exempt dividends). To directly allocate tax expense to tax-exempt income, enter TE or NON in the Income Type field. To indirectly allocate tax expense to tax-exempt income, enter X in the Allocate indirect tax expense to all income types field on Form Allocate in the Allocation folder.

The following information describes how the entries in the field affect the calculation of the federal and state tax returns.


Tax Type: Enter a code to identify the type of tax. This information is used to complete the Grantor / Agency Report, Form 1116, and some state products use this information to calculate state adjustment amounts.




Postal Code: Enter a postal code to identify the state where the tax was incurred. This information does not appear on the federal return; some state products use this information to calculate state adjustment amounts.





Taxes Deduction: Deduct sales taxes instead of state estimates and state withholding

Enter X to take a deduction for sales taxes instead of state and local income taxes. Enter the sales tax amount in the field for the Taxes deduction: Not entered elsewhere field. If you enter 2 in the Tax type field in the field for the Taxes deduction: Not entered elsewhere field for the sales tax amount, ExacTax/1041 states treat the amount as state and local taxes for adjustment and deduction calculations. If this field is marked, state withholding entered on Forms 1099R, W2, W2G, Income, PayExt, and K1-2 and state estimated tax payments entered on Forms StPmt and KIT-2 are not included in the deduction for taxes.

Other deductions not subject to 2% floor

Enter other deductions not subject to the two-percent AGI limitation. Use the field to enter multiple items and codes to properly classify the deductions. If you do not want the descriptions to proforma and no special codes are needed, enter the amount directly in the input form. The following information describes how the entries in the fields affect the calculation of the federal and state tax returns.


217



Admin: Enter X if an item is an administrative expense of the estate or trust. ExacTax includes amounts from items marked with X in the calculation of adjusted gross income for purposes of the two-percent floor on miscellaneous deductions, and modified adjusted gross income on Forms 4684 and 8582.







ExacTax adds the following items to the statement when printing.

Form 4684, line 18

Form 4684, line 32

Form 4684, line 38b

Portfolio deductions, entered on Form K1-2 in the K1 1065, 1120S folder

NOL deduction, entered on Forms Deduct in the Deductions folder and K1T-2 in the K1 1041 folder

Penalty for early withdrawal, entered on Form Income (in the field for the Interest income field) in the Income folder and Form K1-2 in the K1 1065, 1120S folder

Estate tax deductions, entered on Form K1T in the K1 1041 folder

Depreciation, entered in the Income folder

Adjusting gross income: Form 1041, 1041-QFT, 1040NR (Force)

Enter an amount to override the adjusted gross income that ExacTax calculates. ExacTax uses this amount in the calculation of two percent of AGI for expenses subject to the limitation and for the income limitation on Form 8903. ExacTax prints the calculation of AGI on the Adjusted Gross Income Worksheet and the limitation on the Allocation of Deductions for Tax-Exempt Income Worksheets, Page 2.

Adjusted gross income: Electing small business trusts (Force)

If the return is for an ESBT with non-S Corporation income, ExacTax calculates adjusted gross income and the limitation of two percent of AGI for expenses subject to the limitation separately for the ESBT and non-S Corporation income. Use this field to override the adjusted gross income calculated for the ESBT income. ExacTax prints the calculation of the separate AGI on the Adjusted Gross Income Worksheet.


218


The following information describes how entries in the field affect the calculation of the federal and state tax returns.

Description and Total: Enter information about the calculation of the estate tax deduction in these columns.

Capital Gains in IRD: Enter the amount of the total column that is attributable to capital gains received as income in respect to a decedent. ExacTax subtracts this amount from Schedule D, Part V, line 26.

Qualified Divs in IRD: Enter the amount of the total column that is attributable to qualified dividends received as income in respect to a decedent. ExacTax subtracts this amount from Form 1041, Page 1, line 2b(2).

Grantor trusts: Other deductions

Enter medical, utility, or other deduction information for grantor trusts or agency relationships. ExacTax allocates these amounts based on the income distribution percent entered in View > Beneficiary Information >Federal > Allocations and prints these amounts on the Grantor / Agency Report.

Net operating loss carryback for amended return: Form 1041, line 15b

If this is an amended return, enter the amount of net operating loss carryback from later years. ExacTax combines this amount with amounts entered in the 15 Year Carryover Items section on Form CO in the Carryovers & NOL folder and in the Loss Carryovers: Net operating field on Form K1T in the K1 1041 folder and prints the amount on the applicable line on Form 1041, 1041-QFT, 1040NR, or 5227.

Note: Enter net operating loss carryovers from previous years in the 15 Year Carryover Items section of Form CO in the Carryovers & NOL folder.

Net operating loss carryback for amended return: Electing small business trusts

If this is an amended return for an ESBT with non-S Corporation income, enter the amount of net operating loss carryback from later years. ExacTax combines this amount with the amounts entered in the 15 Year Carryover Items section on Form CO in the Carryovers & NOL folder and prints the amount on the applicable line of the Electing Small Business and Qualified Subchapter S Trust Worksheet.

Trustee fee charged per contract

If preparing a return for a qualified funeral trust, enter the amount of trustee fees that should be charged per contract. ExacTax multiplies this amount by the number of owners and includes the total on Form 1041-QFT, line 7.

Form 4952 - Investment Interest Expense

Adjustments to Form 4952 amounts: Gross income from investments

Enter the adjustment to Form 4952, line 4a for gross income from property held for investment. If the client is an ESBT with non-S Corporation income, enter the adjustment from the S Corporation part of the trust in the ESBT / QSST field and enter the adjustment from the remainder of the trust in the Other field. This information does not override the amount calculated by ExacTax; the information increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.

Note: If you enter ESBT (Return has only S corporation income) in the Type of entity field on Form 1041, ExacTax completes Form 4952 with amounts from the S Corporation. In this case, enter the adjustment in the Other field.

Adjustments to Form 4952 amounts: Net gain from disposition of investments


219

Enter the adjustment for any net gain from disposition of property held for investment. If the client is an ESBT with non-S Corporation income, enter the adjustment from the S Corporation part of the trust in the ESBT / QSST field and enter the adjustment from the remainder of the trust in the Other field. Your entry does not override the amount ExacTax calculates; the entry increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.


Adjustments to Form 4952 amounts: Net capital gain from disposition of investments

Enter the adjustment for any net capital gain from the disposition of property held for investment. If the client is an ESBT with non-S Corporation income, enter the adjustment from the S Corporation part of the trust in the ESBT / QSST field and enter the adjustment from the remainder of the trust in the Other field. This information does not override the amount calculated by ExacTax; the information increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.


Investment expenses (Force)

ExacTax calculates an amount for Form 4952, line 5 using amounts from Form K1-2 and expenses from royalty units of Form Rent. Enter an amount to override the calculated amount for investment expenses. If the client is an ESBT with non-S Corporation income, enter the override for the S Corporation part of the trust in the ESBT / QSST field and enter the override for the remainder of the trust in the Other field.

Note: If you enter ESBT (Return has only S corporation income) in the Type of entity field on Form 1041, ExacTax completes Form 4952 with amounts from the S Corporation. In this case, enter the expense in the Other field.

Treat all long-term capital gains and qualified dividends as investment income

Enter X to treat all long-term capital gains and qualified dividends as investment income.

Notes

If you enter X in the Treat all long-term capital gains and qualified dividends as investment income field and enter amounts in the Amount to include in investment income if not 100% fields, ExacTax includes 100 percent of long-term capital gains and qualified dividends in investment income.

Qualified dividend amounts included in investment income are not available to distribute to beneficiaries.

Amount to include in investment income if not 100%

Enter the dollar amounts of long-term capital gains and qualified dividends to treat as investment income. If all long-term gains and qualified dividends are treated as investment income, enter X in the Treat all long-term capital gains and qualified dividends as investment income field. If the client is an ESBT with non-S Corporation income, enter the amounts for the S Corporation part of the trust in the ESBT / QSST field and enter the amounts for the remainder of the trust in the Other field. ExacTax includes the amount of long-term capital gains and qualified dividends elected in this field as investment income on Form 4952.

Notes

If you enter X in the Treat all long-term capital gains and qualified dividends as investment income field and enter amounts in the Amount to include in investment income if not 100% fields, ExacTax includes 100 percent of long-term capital gains and qualified dividends in investment income.


220

Qualified dividend amounts included in investment income are not available to distribute to beneficiaries.

If you enter ESBT (Return has only S corporation income) in the Type of entity field on Form 1041, ExacTax completes Form 4952 with amounts from the S Corporation. In this case, enter the amounts in the Other field.


221

Amount

Charity Schedule A - Charitable Deduction and Distributions

6FCHAR 01 11/07/16 FIDUCIARY

Permanently set aside for charitable purposes from the current year . . . . . . . . . . . . . . [4]Allocable tax-exempt income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charitable Recipient(35)#[§ 2] Amounts Paid for Charity from Current Year Income

Enter a percent

Percentage

[5]Long-term capital gains included in current year income . . . . . . . . . . . . . . . . . . . . . . . . . [6] [7]LTCG paid/permanently set aside for charitable purposes. . . . . . . . . . . . . . . . . . . . . . . . . [8] [9]LTCG section 1202 exclusion in the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[10]Short-term capital gains included in current year income . . . . . . . . . . . . . . . . . . . . . . . . . [12]STCG paid/permanently set aside for charitable purposes . . . . . . . . . . . . . . . . . . . . . . . .

[11]

Overflow # 2016 71

ExacTax, Inc. 71

Street(35)

ContributionAmount

Date ofContribution

Section 642(c)(1)Election

#

ContributionAmount

Date ofContribution


#

ContributionAmount

Date ofContribution


#

ContributionAmount

Date ofContribution


City, State ZIP

City, State ZIP

City, State ZIP

City, State ZIP

Charitable Recipient(35) Street(35)



(xxx.xx)(xxx.xx)

(xxx.xx)

(xxx.xx)

[3](xxx.xx)

[13] [14]

[1](xxx.xx) or contribution amount below. Do not enter both. If both are entered, amounts are used.

Enter a percent or amount below. Do not enter both. If both are entered, amounts are used.


222

Form [71] - Charitable Deduction

Overview

Use this form to enter information for Form 1041, Page 2, Schedule A charitable deductions.

Schedule A - Charitable Deduction

Use this section to enter information for the charitable deduction calculation.

Paid for charitable purposes from current year income / Percentage

If you use the Percentage field, ExacTax applies the percentage entered to the current-year income and uses that amount in the calculation of the charitable contribution deduction.

Note: To allocate current-year income to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields, ExacTax uses the amount.

Paid for charitable purposes from current year income / Amount

Enter amounts paid to charitable organizations out of this year's income. A field is attached to allow you to list the contribution information. Enter ordinary and tax-exempt amounts only. Use the various Long-term capital gains and Short-term capital gains fields to enter capital gain amounts.

Notes

To allocate current-year income to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields, ExacTax uses the amount.

If you are treating a charitable contribution paid next year as paid in the current year, open the field and enter X in the Section 642(c)(1) Election column to generate an election statement to print with the return.

Permanently set aside for charitable purposes from current year income / Percentage

If you use the Percentage field, ExacTax applies the percentage entered to the current-year income and uses that amount in the calculation of the charitable contribution deduction.

Note: To allocate current-year income to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields, ExacTax uses the amount.

Permanently set aside for charitable purposes from current year income / Amount

Enter amounts permanently set aside from current-year income for charitable organizations. A field is attached to allow you to list the contribution information. Enter ordinary and tax-exempt amounts only. Use the various Long-term capital gains and Short-term capital gains fields to enter capital gain amounts.

Notes

To allocate current-year income to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields, ExacTax uses the amount.



223

Allocable tax-exempt income (Force)

ExacTax automatically calculates the amount of tax-exempt income allocable to charitable contributions. Use this field to override the calculated amount.

Capital gains / Percentage

If you use the Percentage fields, ExacTax applies the percentages entered to the applicable capital gain income and uses that amount in the calculation of the charitable contribution deduction. Capital gains included on Form 1041, Page 2, Schedule A, line 1 are also included in the calculation of accounting income.

To use the net capital gain amount when either the short-term or the long-term amount is a loss, enter percentages for both short-term and long-term gains.

Note: To allocate capital gains to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields for any one item, ExacTax uses the amount.

Capital gains / Amount

To allocate a certain amount of capital gain income to the calculation of the charitable contribution, enter that amount in the applicable income type field. A field is attached to allow you to list the contribution information. Capital gains included on Form 1041, Page 2, Schedule A, line 1 are also included in the calculation of accounting income.

Notes

To allocate capital gains to the charitable contribution deduction, use either the Percentage or Amount field, but not both. If you enter data in both fields for any one item, ExacTax uses the amount.


Long-term cap gains: Section 1202 exclusion in the current year

Enter the section 1202 exclusion amount allocable to the long-term capital gains set aside from current-year gross income.


224

Personal Casualty and Theft Loss4684P (2016)

Form 4684 - Personal Use Properties

A B C D

State postal code

Holding period (Force)Date acquiredDate of casualty or theftCost or basisInsurance or other reimbursementFair market value before lossFair market value after loss

BCD


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

4684P 72

2016 FIDUCIARY1/23/2017 8:18:06 AM


225

Form [72] - Personal Casualty and Theft Loss

Overview

Use this form to complete Form 4684, Casualties and Thefts, Page 1.

Form 4684 - Personal Use Properties

Use this section to complete Form 4684, Page 1, Section A.

State postal code

If you process a state return and the income or loss for this activity is considered source income or loss for that state, enter a postal code for proper state processing. If you leave this field blank, none of the income or loss for this activity will be considered source income or loss for that state.


Enter a description for each property. This information transfers to Form 4684, line 1.


ExacTax determines a short-term or long-term holding period based on the dates entered in the Date acquired and Date of casualty or theft fields. Enter I or 999998 in the Date acquired field to designate an asset as inherited; ExacTax treats this as a long-term holding period. Enter V or 999999 in the Date acquired field if the asset was acquired on various dates; ExacTax treats this as a short-term holding period. To change the holding period, enter 1 for short term, 2 for long term, or 3 to classify as 28-percent rate property.

Date acquired

Enter the date the client acquired each property. ExacTax transfers this information to Form 4684, line 1.


Enter the date of each casualty or theft. These dates do not transfer to the return; however, ExacTax uses the dates to determine the holding period of the gain or loss.

Cost or basis

Enter the basis of each property. This information transfers to Form 4684, line 2.




Enter the fair market value of the properties before the loss in these fields. ExacTax transfers this information to Form 4684, line 5.




226

Note: If you leave the Fair market value after loss field blank, ExacTax assumes that the casualty or theft totally destroyed the property and that the fair market value after the loss is zero. You can enter 0 (zero) if applicable.


227

Revenue Procedure 2009-20 (Ponzi)Ponzi (2016)

Computation of Deduction

Required Statements and Declarations

Force holding period (1 = Short‐term, 2 = Long‐term)

Tax years and dates filed for returns that do not satisfy the conditions of Revenue Procedure 2009‐20

Taxpayer identification number

City, state, zip codeAddress

Name

Does the taxpayer intend to pursue third‐party recovery? ( 1 = Yes, 2 = No)

Potential insurance or SIPC recoveryActual recovery

Withdrawals for all yearsIncome reported on prior years tax returns Subsequent investmentsInitial investment

Description


State

Foreign country code / descriptionForeign province or countyForeign postal code

Responsible individual or entity:

1 2

3

4

5

6

7

8

9

10

11

12

13

14

15 16 17

18 19

20

21

22

Ponzi 73

2016 FIDUCIARY1/23/2017 8:18:06 AM


228

Form [73] - Revenue Procedure 2009-20 (Ponzi)

Overview

Use this input form to calculate the Ponzi deduction. UltraTax uses this calculation to complete Form 4684, Page 3.



This field is not available for data entry. The field displays the unique casualty or theft number that has been assigned to each separate unit of Form Ponzi. This number does not transfer to the return.

Does the taxpayer intend to pursue third-party recovery?

Enter 1 if the taxpayer intends to pursue third-party recovery or 2 if the taxpayer does not intend to pursue third-party recovery. The entry in this field determines the percentage of qualified investment that is deductible on Section C, Page 3. If you enter 1 (pursuing third-party recovery), the percentage of qualified investment is 75 percent. If you enter 2 (not pursuing third-party recovery), the percentage of qualified investment is 95 percent. If you leave this field blank, ExacTax defaults to 1.


Name, Taxpayer identification number, and address of responsible individual or entity

Enter the name, address, and taxpayer identification number (TIN) of the individual or entity that conducted the specified fraudulent arrangement.

Tax years and dates filed for returns that do not satisfy the conditions of Revenue Procedure 2009-20

Enter the tax years and dates filed for any previously-filed returns or amended returns that did not satisfy the conditions of Revenue Procedure 2009-20. You can enter information directly in the field or in the field attached to the field.


229

Schedule B and Accounting IncomeDist (2016)

Income Distribution Deduction

Accounting Income

Tax‐exempt income included in total distributions (Force)Other amounts paid, credited, or distributed (required or discretionary)Income required to be distributed (Force)

Other long‐term capital gain (Force)

Short‐term capital gain (Force)100% of capital gains

Adjusted tax‐exempt interest (Force)

Section 1231 gain (Force)

Net accounting income (Force)

Additions ‐ items in accounting income not on returnSubtractions ‐ items on return not in accounting incomeAllocate ordinary gain or (loss) from Form 4797 to incomeDepletion percentage for accounting income purposes (Force)

Include income reported instead of distributions in accounting income (Pass‐through activities)

Deduction if less than $5 per grave siteNumber of gravesites

Cemetery perpetual care fund:

Includible in distributable net income per trust document:1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Dist 74

2016 FIDUCIARY1/23/2017 8:18:05 AM


230

Form [74] - Schedule B and Accounting Income

Overview

Use this form to enter information for Form 1041, Schedule B income distribution deduction and to enter adjustments for accounting income.

Income Distribution Deduction

ExacTax determines distributions for Form 1041, Page 2, Schedule B, line 9 using the information you enter on Form Allocate, in View > Beneficiary Information, and the amount calculated for accounting income. You do not have to complete any of the Schedule B input form fields on this form in order for ExacTax to complete Schedules B and K-1. Use these fields only to override the calculated amounts.

Adjusted tax-exempt interest (Force)

On the Allocation of Expenses by Income Type - Tax Basis Worksheet, ExacTax automatically calculates the adjusted tax-exempt interest for Form 1041, Schedule B, line 2. Use this field to override the calculated amount.

Includible in distributable net income per trust document: 100% of capital gains

Enter X to indicate that all capital gains, whether or not distributed, are attributable to income under the governing instrument or local law. If this field is blank, ExacTax limits the amount of capital gains on Form 1041, Page 2, Schedule B, line 3 to amounts distributed.

Includible in distributable net income per trust document: Short-term capital gain / Section 1231 gain / Other long-term capital gain (Force)

Enter amounts in these fields if only a portion of capital gains is attributable to income and this amount differs from the amount of capital gain distributed. Enter 0 (zero) if short-term, section 1231, or long-term capital gain is distributed but not includible in DNI.

Notes

If the amount of capital gains distributed to beneficiaries is equal to the amount of capital gains attributable to income, you do not need to enter amounts in these fields. Enter the distribution in the Capital gains / losses: Short-term and Long-term fields and the Section 1231 gain field in View > Beneficiary Information or mark the Allocate capital gains equally among all first tier beneficiaries checkbox on Form Allocate.

If you mark the 100% of capital gains includible in DNI per trust document field, ExacTax assumes that 100 percent of capital gains are attributable to income, regardless of any entry in these fields.

Income required to be distributed (Force)

ExacTax calculates the income required to be distributed based on information entered on Form Allocate and in View > Beneficiary Information. Use this field to override the calculated amount. ExacTax uses the amount you enter in this field as the amount of total distributions to first tier beneficiaries.

On non-final returns of estates and complex trusts, ExacTax allocates 100 percent of this amount to the Schedules K-1 of first-tier beneficiaries if this amount is less than distributable net income. To ensure correct Schedule K-1 allocations on these returns, the use of this field requires ordinary income allocations in View > Beneficiary Information totaling 100 percent.


231

On all final returns, ExacTax uses the amount as total distributions only. Income allocations to beneficiaries on Schedules K-1 are performed using distributable net income.

Other amounts paid, credited, or distributed (required or discretionary)

ExacTax can determine this amount using accounting income and information you enter for beneficiaries in View > Beneficiary Information. You do not have to complete this field for an amount to appear on Form 1041, Page 2, Schedule B, line 10. Note that an entry in this field is added to any allocation to second-tier beneficiaries.

Tax-exempt income included in total distributions (Force)

ExacTax automatically calculates the amount of tax-exempt income included on Form 1041, Page 2, Schedule B, line 12. Use this field to override the calculated amount.

Cemetery perpetual care fund

Enter the number of gravesites if the trust is a cemetery perpetual care fund.

Enter an amount in the Deduction if less than $5 per gravesite field only if the amount paid is less than $5 per gravesite. If the Deduction if less than $5 per gravesite field is blank, ExacTax multiplies the amount in the Number of gravesites field by $5 to calculate Form 1041, Page 1, line 18.

Accounting Income

ExacTax calculates accounting income based on information entered on other forms. Use these fields to adjust the calculated amount.


ExacTax automatically calculates accounting income on the Accounting Income and Distributable Net Income Detail Information Worksheet. Use this field to override the amount ExacTax calculates. If this is a simple trust or an estate, the forced amount does not transfer to Form 1041, Page 2, Schedule B, line 8.

Include income reported instead of distributions in accounting income

Enter X to include the income or losses reported on the Schedule K-1 from the pass-through entity in accounting income. If this field is blank, ExacTax includes only distributions from partnerships and S Corporations in accounting income; actual income or losses and deduction amounts reported on the Schedule K-1 from the pass-through entity are considered corpus. This field will proforma from year to year.

Additions - items in accounting income not on return

Enter items that are not reported on the return but should be included in accounting income. ExacTax prints this adjustment on the Accounting Income and Distributable Net Income Detail Information Worksheet.

Subtractions - items on return not in accounting income

Enter items that are reported on the return but should not be included in accounting income. ExacTax prints this adjustment on the Accounting Income and Distributable Net Income Detail Information Worksheet.

Allocate ordinary gain or (loss) from Form 4797 to income


232

Enter X to allocate ordinary gain or (loss) from Form 4797 to income, rather than to corpus. If you mark this field, ExacTax treats 100 percent of the ordinary gain or (loss) as income on the Accounting Income and Distributable Net Income - Detail Information Worksheet.

Depletion percentage for accounting income purposes (Force)

Enter the depletion percentage used for accounting income purposes. If this field is blank, ExacTax calculates depletion for accounting income purposes using the same percentage as for tax purposes.

Note: This field is applicable only if you are using the ExacTax/Oil & Gas module.


233

Assets

Liabilities

Net Assets

Fair Market Value

Balance Balance Sheet

6FBAL 01 11/07/16 FIDUCIARY

End of YearBeginning of Year

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Savings and temporary cash investments . . . . . . . . . . . . . . . . . . . . . .Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . .Receivables due from officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[1]

[10]

Notes and loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Land, buildings, equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Land, building, equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair Market ValueEnd of YearBeginning of Year

Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . .Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loans from officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Memo only Total Liabilities


Trust principal corpus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Undistributed income and profits (Force EOY) . . . . . . . . . . . . . . . . .Undistributed capital gains (Force EOY) . . . . . . . . . . . . . . . . . . . . . .Undistributed nontaxable income (Force EOY) . . . . . . . . . . . . . . . . .

# End of Year [65][§ 64] Mortgagesand other notes

payable

Description (29) Fair Market Value [66]Beginning of Year [64]

# End of Year [68]

[§ 67] Other liabilities

Description (29) Fair Market Value [69]Beginning of Year [67]

Memo only Total Net Assets

Memo only Total Assets

# End of YearDescription (29) Fair Market ValueBeginning of YearInvestments:

[§ 28] Government

[§ 31] Corp stock

[§ 34] Corp bonds

[28]

[31]

[34]

[32]

[29]

[35]

[30]

[33]

[36]

# End of Year [44]Description (29) Fair Market Value [45]Beginning of Year [43]Investments: (cont.)

[§ 43] Other

# End of Year [53]Description (29) Fair Market Value [54]Beginning of Year [52]

[§ 52] Other Assets

Overflow # 2016 75

ExacTax, Inc. 75

[4][7]

[13][16][19][22][25]

[37][40]

[2]

[11]

[5][8]

[14][17][20][23][26]

[38][41]

[3]

[12]

[6][9]

[15][18][21][24][27]

[39][42]

[46][49]

[47][50]

[48][51]

[55][58]

[56][59]

[57][60]

[61] [62] [63]

[70] [71][73] [74][75] [76][77] [78]


234

Form [75] - Balance Sheet

Overview

Use this form to complete Form 5227.

Assets

Use this section to enter asset information.

Assets: Beginning of Year / End of Year / Fair Market Value

Enter amounts to complete the asset portion of the balance sheet on Form 5227. Enter an amount in the Fair Market Value column for a charitable remainder unitrust only. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year column proformas automatically. If necessary, enter the beginning-of-year amounts.

Liabilities

Use this section to enter liability information.

Liabilities: Beginning of Year / End of Year / Fair Market Value

Enter amounts to complete the liability portion of the balance sheet on Form 5227. Enter an amount in the Fair Market Value column for a charitable remainder unitrust only. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year column proformas automatically. If necessary, enter the beginning-of-year amounts.

Net Assets

Use this section to enter net asset information.

Trust principal or corpus / Beginning of Year / End of Year

Enter amounts to complete the trust principal or corpus fields on Form 5227. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amounts.

Use the statement to describe adjustments made to original trust principal or corpus for additional assets added or adjusted.

Adjust for miscellaneous deductions 2% limitation

Enter X for ExacTax/1041 to automatically adjust trust principal or corpus for the amount of miscellaneous deductions not allowed as a deduction due to 2% limitation. This adjustment prints in the statement for Form 5227, Part IV, line 57.

Undistributed: Income and profits / Beginning of Year / End of Year (Force)

For a charitable remainder trust, ExacTax calculates the end-of-year undistributed amounts on Form 5227, Page 7, Schedule A, Part I. To override the amount for Form 5227, Page 3, line 58a, column (b) enter the amount of undistributed income in the End of Year (Force) field. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amount.

Undistributed: Capital gains / Beginning of Year / End of Year (Force)

For a charitable remainder trust, ExacTax calculates the end-of-year undistributed amounts on Form 5227, Page 7, Schedule A, Part I. To override the amount for Form 5227, Page 3, line 58b, column (b) enter the amount of undistributed capital gains in


235

the End of Year (Force) field. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amount.

Undistributed: Nontaxable income / Beginning of Year / End of Year (Force)

For a charitable remainder trust, ExacTax calculates the end-of-year undistributed amounts on Form 5227, Page 7, Schedule A, Part I. To override the amount for Form 5227, Page 3, line 58c, column (b) enter the amount of undistributed nontaxable income in the End of Year (Force) field. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amount.


236

Split Interest Charibable Trust Information

Amended return explanation . .

SIT

Other entity type . . . . . . [1]

6FSIT 01 11/07/16 FIDUCIARY

Trust has unrelated business taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V-A - Annuity Trusts:

Required distribution determined with reference to accounting income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2016 76A

ExacTax, Inc. 76A

Part V - Annuity and Unitrust Information

Fair market value of assets at end of tax year (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Initial fair market value of the property placed in the trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [22]Total annual annuity amounts for all recipients (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[23]

Part V-B - Unitrusts:Triggering event for change in method of payment

Fixed percentage to be paid to the recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(xxx.xxxx)

Total accrued distribution deficiencies from previous years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Unitrust distribution (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Initial fair market value of assets placed in the trust (final return) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[25]

Trust's accounting income for current year (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Explanation if trustee changed the method ofdetermining fair market value of assets

[§ 3]

[2]

[4]

[§ 24]

[§ 35]

Part II - Excluded Gross Income

Principal (Prior Year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income and accumulated income set aside (Prior Year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[32]

[29][30][31]

Charitable Purpose and Description of assetsPayee's Name and Address#[§ 19] Principal Distribution for Charitable Purposes (Current)

Date Income Distributed

Charitable Purpose and Description of assetsPayee's Name and Address#[§ 21] Income Distributions for Charitable Purposes (Current)

Date Income Distributed

[28]Short-term capital gain includible if not 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[27]

Long-term capital gain includible if not 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100% of capital gains includible in accounting income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[5][6]US interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[7][8][9]

[10]Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains/losses:Short-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11][12]

[14][15][16]

Part III - Distributions for Charitable Purposes

[18]

[20]

[34][33]

Unitrust distribution (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [26]

[17]

Dividends:Qualified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other ordinary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income:

Rental real estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [13]


237

Form [76A] - Split Interest Charitable Trust Information

Overview

Use this form to enter information to complete portions of Form 5227, Pages 1, 2, 4, 5, 6, and 7.

Form 5227 - General Information

Use this section to enter general information for Form 5227, Pages 1 and 6.

Other entity type description

If you enter 5 in the Split-interest trust type field on Form 1041, enter an explanation of the type of split-interest trust.

Fair market value of assets at end of tax year (Force)

ExacTax calculates the fair market value of assets at the end of year using the balance sheet information. Use this field to override the amount calculated when the fair market value reported on the balance sheet is not for end of year.

Amended return explanation

Enter an explanation for the amendments, and identify the lines and amounts being changed on the amended return. If you enter information in this field, ExacTax marks the Amended return box on Form 5227 and Amended K-1 box on Schedule K-1.

Trust has unrelated business taxable income

Enter X to indicate that the split-interest trust had unrelated business taxable income. ExacTax defaults to No if this field is blank.

Note: Form 4720 is available as a non-calculating form for reporting unrelated business taxable income.

Part II - Excluded Gross Income

Under regulations for section 1411, the ordering rules to distribute income have changed. ExacTax assumes that all current-year income on Form 5227 is investment income. Use the fields on this form to enter the portion of current-year income that should be excluded income.

Note: ExacTax allocates expenses proportionally between investment and excluded income by category based on how the expenses were allocated on the Allocation of Expenses by Income Type - Tax Basis Worksheet.

Part III - Distributions for Charitable Purposes

Use this section to enter general information for Form 5227, Part III.

Principal / Prior Year

If ExacTax/1041 was used in the prior year, this information automatically proformas. If necessary, enter the amount from the prior-year Form 5227, Page 2, Part III-A.

Principal / Current year

Enter the charitable purpose, payee’s name and address, and the amount of principal distributed in the field.


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Income and accumulated income set aside / Prior Year

If ExacTax/1041 was used in the prior year, this information automatically proformas. If necessary, enter the amount from the prior-year Form 5227, Page 2, Part III-B.

Income and accumulated income set aside / Current Year

Enter the charitable purpose, payee’s name and address, and the amount of accumulated income distributed in the current tax year in the field.

Part V - Annuity and Unitrust Information

Use this section to enter charitable remainder annuity trust and charitable remainder unitrust information.

Total annual annuity amounts for all recipients (For equal allocation)

ExacTax automatically calculates the total annual annuity amounts and completes the required statement for Form 5227, Page 4, Part V-A, line 61b based on the information in View > Beneficiary Information > Federal > Other Returns. Enter an amount in this field to override the ExacTax calculation. Entering an amount causes ExacTax to allocate the annuity amount evenly among the beneficiaries.

Triggering event for change in method of payment

Enter a description of the triggering event and other information required for Form 5227, Page 4, Part V-B, line 64. If there is data in this field, ExacTax marks the Yes checkbox on line 64.

Fixed percentage to be paid to the recipients

Enter the unitrust percentage for ExacTax to use when calculating the unitrust amount.

Required distribution determined with reference to accounting income

Enter X to indicate that the unitrust’s governing instrument provides for determining required distributions with reference to the unitrust’s accounting income. If this field is blank, ExacTax marks the No checkbox on Form 5227, Page 4, Part V-B, line 62 and does not complete lines 66a through 67b.

100% of capital gains includible in accounting income

Enter X to indicate that all capital gains are attributable to income under the governing instrument.

Short-term capital gain includible if not 100%

Enter the short-term capital gain amount that should be included in accounting income. If this field is blank and the 100% of capital gains includible in accounting income field is blank, then no short-term capital gains will be included in the calculation of Form 5227, Page 4, Part V-B, line 66a.

Long-term capital gain includible if not 100%

Enter the long-term capital gain amount that should be included in accounting income. If this field is blank and the 100% of capital gains includible in accounting income field is blank, then no long-term capital gains will be included in the calculation of Form 5227, Page 4, Part V-B, line 66a.


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Trust’s accounting income for current year (Force)

ExacTax calculates accounting income based on income and deduction information entered for the return. Use this field to override the amount calculated by ExacTax.

Total accrued distribution deficiencies from previous years

Enter the distribution deficiencies from previous years for a unitrust whose governing instrument provides for current distributions to make up prior-year deficiencies. If the trust has this provision but there are no prior-year deficiencies, enter 0 (zero). If this field is blank, ExacTax marks the No checkbox on Form 5227, Part V-B, line 63 and does not complete Form 5227, lines 67a and 67b. If there is an amount in this field, ExacTax marks the Yes checkbox on Form 5227, Part V-B, line 63 and does not complete Form 5227, line 66b.

Unitrust distribution (Force)

ExacTax automatically calculates the unitrust amount in one of the following three ways.

If you mark the Required distribution determined with reference to accounting income field, ExacTax calculates the unitrust amount as the lesser of trust accounting income or the unitrust amount and, in this case, completes Form 5227, lines 66a and 66b.

If you enter an amount in the Total accrued distribution deficiencies from previous years field, ExacTax calculates the unitrust amount to include the deficiency amount and, in this case, completes Form 5227, lines 66a, 67a, and 67b.

If both of these fields are blank, ExacTax calculates the unitrust amount on line 65b as the product of the unitrust fixed percentage times the FMV of net assets as calculated in Form 5227, Part IV. For the initial year of the trust, ExacTax prorates the unitrust amount based on the date in the Date created / decedent’s date of death field on Form 1041. For the final year of the trust, ExacTax prorates the unitrust amount based on the date in the Date of termination field on Form 1041. The result prints on Form 5227, line 68.

If there is more than one unitrust beneficiary, ExacTax allocates the unitrust amount among the beneficiaries using percentages entered in View > Beneficiary Information > Federal > Other Returns. If there are no percentages, ExacTax allocates the unitrust amount evenly among the beneficiaries. Use this field to force the amount for Form 5227, line 68.

Explanation if trustee changed the method of determining fair market value of assets

If there is data in this field, ExacTax marks the Yes checkbox on Form 5227, Part V-B, line 71.


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Split Interest Trust Information, Page 2SIT-2 (2016)

Part VI-A - Statements Regarding Activities

Part VI-B - Questions 75 and 76

Part VI-B - Questions 77 through 80

Does the trust satisfy the requirements of section 508(e)? (1 = Yes, 2 = No, 3 = N/A)Is this return only to report income and assets of a segregated amount? (1 = Yes, 2 = No, 3 = N/A)

Taxes on self‐dealing:Engage in the sale or leasing of property with a disqualified person? (1 = Yes, 2 = No, 3 = N/A)Have monetary dealings with a disqualified person? (1 = Yes, 2 = No, 3 = N/A)Furnish goods or services to (or accept from) a disqualified person? (1 = Yes, 2 = No, 3 = N/A)Pay compensation to or expenses of a disqualified person? (1 = Yes, 2 = No, 3 = N/A)Transfer any income or assets to (or for) a disqualified person? (1 = Yes, 2 = No, 3 = N/A)Agree to pay money or property to a government official? (1 = Yes, 2 = No, 3 = N/A)If "yes," did any of the acts fail to qualify under the exceptions? (1 = Yes, 2 = No, 3 = N/A)Relying on current notice regarding disaster assistanceWere any prior year acts not corrected before January 1? (1 = Yes, 2 = No, 3 = N/A)

Do the provisions of section 4947(b)(3)(A) or (B) apply? (1 = Yes, 2 = No, 3 = N/A)

Taxes on excess business holdings:Did the trust hold more than a 2% interest in any business enterprise? (1 = Yes, 2 = No, 3 = N/A)If "yes," were excess business holdings a result of a post‐'69 purchase or lapse of period? (1 = Yes, 2 = No, 3 = N/A)

Taxes on investments that jeopardize charitable purposes:Did the trust invest any amount that would jeopardize charitable purpose? (1 = Yes, 2 = No, 3 = N/A)Were prior‐year investments not removed from jeopardy before January 1? (1 = Yes, 2 = No, 3 = N/A)

Taxes on taxable and political expenditures:Carry on propaganda, or otherwise attempt to influence legislation? (1 = Yes, 2 = No, 3 = N/A)Influence the outcome of any public election? (1 = Yes, 2 = No, 3 = N/A)Provide a grant to an individual for travel, study, or similar purpose? (1 = Yes, 2 = No, 3 = N/A)Provide a grant to other than a charitable organization? (1 = Yes, 2 = No, 3 = N/A)Provide for any purpose other than stated on form? (1 = Yes, 2 = No, 3 = N/A)If "yes," did any transaction fail to qualify as described in the regulations? (1 = Yes, 2 = No, 3 = N/A)Relying on current notice regarding disaster assistanceExplanation if claiming exemption from tax because of responsibility for grant

Personal benefit contracts:Receive any funds to pay premiums on a personal benefit contract? (1 = Yes, 2 = No, 3 = N/A)Pay premiums on a personal benefit contract? (1 = Yes, 2 = No, 3 = N/A)

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Form [76B] - Split Interest Charitable Trust Statements

Overview

Use this form to enter information for Form 5227, Page 4, Part VI-A.

Part VI-A - Statements Regarding Activities

Does the trust satisfy the requirements of section 508(e)?

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the question. If this field is blank, ExacTax marks the Yes checkbox on Form 5227, Page 4, line 73.

Is this return only to report income and assets of a segregated amount?

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the question. If this field is blank, ExacTax marks the No checkbox on Form 5227, Page 4, line 74.

Part VI-B - Questions 75 and 76

Use this section to complete the statements regarding taxes on self-dealing.

Taxes on self-dealing

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the question. If the field for a particular question is blank, ExacTax marks the No checkbox for that item.

Do the provisions of section 4947(b)(3)(A) or (B) apply?

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the question. If this field is blank, ExacTax marks the No checkbox.

Part VI-B - Questions 77 through 80

Use this section to complete the statements regarding taxes and excess business holdings.

Taxes on excess business holdings

If section 4947(b)(3)(A) or (B) provisions apply, ExacTax marks the N/A checkbox and leaves the questions unanswered. Otherwise, ExacTax marks No to Questions 78a and 78b unless you make an entry in this field.

Taxes on investments that jeopardize charitable purposes

If section 4947(b)(3)(A) or (B) provisions apply, ExacTax marks the N/A checkbox and leaves the questions unanswered. Otherwise, ExacTax marks No to Questions 78a and 78b unless you make an entry in this field.

Taxes on taxable and political expenditures

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the question. If any of these fields are blank, ExacTax marks the No checkbox for that item.

Explanation if claiming exemption from tax because of responsibility for grant

In the field, explain if claiming exemption from tax because the trust maintained expenditure responsibility.


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Personal Benefit Contracts

Use this section to complete the statements regarding taxes on self-dealing, excess business holdings, political expenditures, and personal benefit contracts.

Personal benefit contracts

Enter 1 for Yes, 2 for No, or 3 for N/A as a response to the questions. If any of these fields are blank, ExacTax marks the No checkbox for that item on Form 5227, Page 5, line 80.


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Split Interest Trust Information, Page 3SIT-3 (2016)

Part VII, Section A & B

Part VII, Section C - Pooled Income Funds

Part VII, Section D - Charitable Remainder Trusts

Schedule A - Distributions, Assets, Donor Information

Section B ‐ Charitable Lead Trusts:

Income required to be paid to charitable remainder beneficiary for current year

Amount required to be paid to private beneficiaries for current year

Required distributions to remainder beneficiary that are undistributedAmount required to be distributed to satisfy remainder interestContributions received during current year

Payments required to be paid to charities for current yearExcess income required to be paid for charitable purpose

Making an election under Reg 1.1411‐10(g) with respect to a CFC or QEF

Reason final distributions not made according to trust instrumentTrust instrument amended during the year

Making an election under Reg 1.664‐2(a)(1)(i)(a)(2) or 1.664‐3(a)(1)(i)(g)(2)Charitable interests involve only cemeteries or war veterans' posts

Early termination agreement signed by all parties to the trustAssets and donor information

Reason Part II‐A does not agree with Part V‐A or Part V‐B

Reason return not final if expired before current year

Section A ‐ Split‐interest trust's income interests expired:Prior yearCurrent year

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Form [76C] - Split Interest Charitable Income

Overview

Use this form to enter information for Form 5227, Page 1, Part I.

Part VII, Section A & B

Section A - Split-interest trust’s income interests expired / Prior Year

Enter X if any of the split-interest trust’s income interests expired before the current year. ExacTax uses this entry to complete Form 5227, Page 6, Part VII, Section A, line 82.

Section A - Split-interest trust’s income interests expired / Current Year

Enter X if any of the split interest trust’s income interests expired during the year. ExacTax uses this entry to complete Form 5227, Page 6, Part VII, Section A, line 81.

Reason return not final if expired before current year

Enter the explanation if any of the split-interest trust’s income interests expired before the current year and this is not a final return.

Part VII, Section C - Pooled Income Funds

Use this section to enter information for pooled income funds.

Part VII, Section D - Charitable Remainder Trusts

Charitable interests involve only cemeteries or war veterans’ posts

Enter X to indicate that the charitable trust interests involve only cemeteries or war veterans’ posts. ExacTax uses this entry to complete Form 5227, Page 6, Part VII, Section D, line 90.

Making an election under Reg 1.664-2(a)(1)(i)(a)(2) or 1.664-3(a)(1)(i)(g)(2)

Enter X if electing to treat income generated from certain property distributions by the trust as occurring on the last day of the tax year. ExacTax uses this entry to complete Form 5227, Page 6, Part VII, Section D, line 91.

Trust instrument amended during the year

Enter X if the trust instrument was amended during the current tax year. ExacTax uses this entry to complete Form 5227, Page 6, Part VII, Section D, line 93.

Reason final distributions not made according to trust instrument

If this is a final return and there is no data in this field, ExacTax marks the Yes checkbox on Form 5227, Page 6, Part VII, Section D, line 94a.

Schedule A – Distributions, Assets, Donor Information


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Assets and donor information

If this is not an initial return and there is data in the FMV of Asset column of this field, ExacTax marks the Yes checkbox on Form 5227, Page 4, Part V-B, line 72 and Page 7, Part III. If ExacTax/1041 was used in the prior year, the donor name and address automatically proforma.


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Business CreditsCr (2016)

Form 3800 - General Business Credits

Form 5884 - Work Opportunity Credit

Form 6765 - Increasing Research Activities Credit

Form 8586 - Low-Income Housing Credit

Form 8826 - Disabled Access Credit

See Screen OthCr for additional Form 3800 information.

Prior year passive credit carryover:

Number of Forms 8609‐A attachedIdentification number(s) of building with a decreased basisCurrent year credit from Form(s) 8609‐A

This credit is available for allocation to beneficiaries

Before 1/1/08 After 12/31/07

Interest acquired before 1990Interest acquired after 1989

Average annual gross receipts

Applicable percentage of contract research expensesRental or lease costs of computersCost of suppliesWages for qualified servicesQualified organization base period amount

Basic research payments to qualified organizationsPrior year passive credit carryover

This credit is available for allocation to beneficiaries. See Screen OthCr for additional Form 6765 information.

Paid or incurred to energy consortia

Qualified research expense for prior years for the alternative simplified credit calculation:201520142013

Second year qualified wages of certified long‐term family assistance recipients

This credit is available for allocation to beneficiaries

Eligible access expendituresPrior year passive credit carryovers

Prior year passive credit carryovers

Qualified wages paid > = 400 hoursQualified wages paid < 400 hours

Current year:

Credit information

DescriptionUnit

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Form [80A] - Business Credits

Overview

Use this form to enter information to complete Forms 3800, 5884, 6765, 8586, 8826, and 8582-CR.

Form 3800 - General Business Credits

Unit / Form / Description

ExacTax transfers information from Form C, F, Income, or Rent to this section. You can modify the information in this section only by changing information on those forms.

Credit information

Enter the total amount of applicable credit you calculated on the necessary form. The following describes fields in this field and how to use them for processing the return.

Credit Form: Enter a code to identify the credit or select the code from the fieldview.

Description: ExacTax completes this field based on the entry in the Credit Form field.

Current Year Credit: Enter the total amount of applicable credit you calculated on the necessary form. The Form 8582-CR calculation uses the trust share of the current-year credit to determine the allowed and unallowed amounts for the current year. All the credits may be allocated to beneficiaries on a grantor trust or agency relationship. For other returns, the following credits may be allocated between the trust and beneficiaries based on information in the View > Beneficiary Information > Federal tab.

Form 3468, Investment

Form 5884, Work Opportunity

Form 6478, Biofuel Producer

Form 6765, Increasing Research Activities

Form 8586, Low-Income Housing

Form 8820, Orphan Drug

Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Form 8844, Empowerment Zone and Renewal Community Employment

Form 8845, Indian Employment

Form 8864, Biodiesel and Renewable Diesel Fuels

Form 8882, Employer-Provided Child Care Facilities and Services

Form 8912, Credit to Holders of Tax Credit Bonds

Form 8932, Employer Differential Wage Payments

Form 8941, Small Employer Health Insurance Premiums

PY Passive Carryover: If ExacTax/1041 was used in the prior year, this information automatically proformas. Otherwise, enter the amount of passive activity credit that was suspended in a prior year due to a limitation on Form


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8582-CR. The Form 8582-CR calculation uses this information to determine the allowed and unallowed amounts for the current year.

Form 5884 - Work Opportunity Credit

Current year: Qualified wages paid < 400 hours

Enter qualified wages paid to employees with less than 400 hours worked. ExacTax multiplies the amount entered by .25 to arrive at the amount for Form 5884, line 1a.

Current year: Qualified wages paid > = 400 hours

Enter qualified wages paid to employees with greater than or equal to 400 hours worked. ExacTax multiplies the amount entered by .40 to arrive at the amount for Form 5884, line 1b.

Current year: Second year qualified wages…

Enter second year qualified wages paid to employees certified as long-term family assistance recipients. ExacTax multiplies the amount entered by .50 to arrive at the amount for Form 5884, line 1c.

Form 6765 - Increasing Research Activities Credit

Prior year passive credit carryovers

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of the passive activity credit that was suspended in a prior year due to a limitation on Form 8582-CR. The Form 8582-CR calculation uses both the current-year credit and carryover information entered to determine the allowed and unallowed amounts for the current year.


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Credit for Prior Year Alternative Minimum Tax8801 (2016)

Prior Year Information

Form 8801 Worksheet

Tax‐exempt income included above, Schedule I, line 41

Overall capital loss, Schedule D, line 20

Capital losses on minimum tax basis, Schedule I, line 36Minimum tax basis, Schedule I, line 35Income to charity, Schedule I, line 34Corpus to charity, Schedule I, line 33

Total net gain included in income, Schedule I, line 32Adjusted tax‐exempt interest, Schedule I, line 31

Capital gains:

Minimum tax foreign tax credit on exclusion items

Line 55Line 56

Unallowed electric vehicle credit

Line 26 or Tax Worksheet, line 13Line 18b, column 2Tax Worksheet, line 10Line 27 or Tax Worksheet, line 14

Adjusted total income or (loss), Schedule I, line 1Net operating loss deduction, Schedule I, line 7

Exclusion itemsTax preference items

Form 1041, Schedule K‐1 exclusion itemsTotal alternative minimum tax net operating loss deduction available


Total distributions, Schedule I, line 40

Enter amounts from prior year

Schedule D:

ESBTOther

Other ESBT

Schedule I:

Schedule I:

Line 27 or Tax Worksheet, line 18

Enter minimum tax credit carryover on Screen CO‐2

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Form [81A] - Credit for Prior Year Alternative Minimum Tax

Overview

Use this form to enter information to complete Form 8801 and the Form 8801 Worksheet for Electing Small Business Trusts.

Prior Year Information

Minimum tax foreign tax credit on exclusion items

Enter the amount of the minimum tax foreign tax credit on exclusion items. ExacTax transfer this amount to Form 8801, line 12.

If the return is an ESBT with non-S Corporation income, enter the alternative minimum tax foreign tax credit on exclusion items from the S Corporation part of the trust in the ESBT field and enter the minimum tax foreign tax credit on exclusion items from the remainder of the trust in the Other field.

Schedule I: Line 55

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount of regular tax before credits as reported on the prior-year Schedule I. ExacTax transfers this amount to Form 8801, line 14.

If the return is an ESBT with non-S Corporation income, enter the regular tax before credits from the S Corporation part of the trust in the ESBT field and enter the regular tax before credits from the remainder of the trust in the Other field.

Schedule I: Line 56

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount of alternative minimum tax from the prior-year Schedule I. ExacTax transfers this amount to Form 8801, line 16.

If the return is an ESBT with non-S Corporation income, enter the alternative minimum tax from the S Corporation part of the trust in the ESBT field and enter the alternative minimum tax from the remainder of the trust in the Other field.

Unallowed electric vehicle credit

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount of any prior-year unallowed qualified vehicle credit. ExacTax transfers this amount to Form 8801, line 20.

If the return is an ESBT with non-S Corporation income, enter the prior-year unallowed qualified vehicle credit from the S Corporation part of the trust in the ESBT field and enter the prior-year unallowed qualified vehicle credit from the remainder of the trust in the Other field.

Schedule D: Line 26 or Tax Worksheet, line 13

If you used ExacTax/ 1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount from the prior-year Schedule D, line 26 or the Schedule D Tax Worksheet, line 13. ExacTax uses this information to complete Form 8801, Part III.

If the return is an ESBT with non-S Corporation income, enter the prior-year Schedule D Tax Worksheet, line 13 amount from the S Corporation part of the trust in the ESBT field and enter the prior-year Schedule D, line 26 or the Schedule D Tax Worksheet, line 13 amount from the remainder of the trust in the Other field.


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Schedule D: Line 18b, column 2

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount from the prior-year Schedule D, line 18b, column 2. ExacTax uses this information to complete Form 8801, Part III.

If the return is an ESBT with non-S Corporation income, enter the prior-year unrecaptured section 1250 gain from the S Corporation part of the trust in the ESBT field and enter the prior-year undistributed unrecaptured section 1250 gain from the remainder of the trust in the Other field.

Schedule D: Tax Worksheet, line 10

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount from the prior-year Schedule D Tax Worksheet, line 10. ExacTax uses this information to complete Form 8801, Part III.

If the return is an ESBT with non-S Corporation income, enter the prior-year Capital Gain Tax Worksheet - Electing Small Business Trust, line 10 amount from the S Corporation part of the trust in the ESBT field and enter the prior-year Schedule D Tax Worksheet, line 10 amount from the remainder of the trust in the Other field.

Schedule D: Line 27

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount from the prior-year Schedule D, line 27. ExacTax uses this information to complete Form 8801, Part III.

If the return is an ESBT with non-S Corporation income, enter the prior-year Capital Gain Tax Worksheet - Electing Small Business Trust, line 6 amount from the S Corporation part of the trust in the ESBT field and enter the prior-year Schedule D, line 27 amount from the remainder of the trust in the Other field.

Form 8801 Worksheet

Schedule I: Exclusion items

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the exclusion items from the prior-year Schedule I. Include interest, taxes, miscellaneous itemized deductions, and refund of taxes.

If the return is an ESBT with non-S Corporation income, enter the prior-year exclusion items from the S Corporation part of the trust in the ESBT field and enter the prior-year exclusion items from the remainder of the trust in the Other field.

Schedule I: Tax preference items

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the tax preference items from the prior-year Schedule I. These items are the tax-exempt interest from specified private activity bonds and depletion.

If the return is an ESBT with non-S Corporation income, enter the prior-year tax preference items from the S Corporation part of the trust in the ESBT field and enter the prior-year tax preference items from the remainder of the trust in the Other field.

Form 1041, Schedule K-1 exclusion items

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the amount received from other trusts and estates in the preceding year reported on all Schedules K-1, line 12d.


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Total alternative minimum tax net operating loss deduction available

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter the net operating loss deduction on an alternative minimum tax basis before the 90-percent limit.

If the return is an ESBT with non-S Corporation income, enter the net operating loss deduction from the S Corporation part of the trust in the ESBT field and enter the net operating loss deduction from the remainder of the trust in the Other field.

Tax-exempt income included above, Schedule I, line 41

If you used ExacTax/1041 in the prior year, the application automatically proformas this information. If necessary, enter tax-exempt income included on Schedule I, line 41 in the preceding year.


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Foreign Tax Credit1116 (2016)


Part I - Income or (Loss)

Part II - Taxes Paid or Accrued

Part III - Credit Calculation

Definitely related expensesPro rata share of:

Itemized or standard deductionsOther deductionsHome mortgage interestOther interest

Foreign source losses

Date foreign taxes paid or accruedIn foreign currency ‐ taxes withheld on:

DividendsRents and royaltiesInterest

In foreign currency ‐ other foreign taxes paid

In US dollars ‐ taxes withheld on:

See Screen OthCr for additional Form 1116 information.

AMT, if different

Taxes claimed (1 = Paid, 2 = Accrued)

Category of income (A = Passive income, B = General limitation income, C = Section 901(j) income, D = Income resourced by treaty, E = Lump‐sum distribution)

Description of income

Name of country

Gross income

DividendsRents and royaltiesInterest

In US dollars ‐ other foreign taxes paid

Reduction in foreign taxesAdjustments

Qualified dividendsShort‐term capital gain or (loss)Long‐term capital gain or (loss)

Foreign source:

Unit

Form

K1 Code

A

D/E/F

I/J/K

L/M

K1 Code

See Screen AMT for the simplified foreign tax credit limitation for AMT purposes.

K1 Code

N

Country code (Electronic filing only)

Mutual fund or other regulated investment company (RIC) income

Explanation of foreign currency

Enter foreign tax credit carryovers on Screen CO‐FTC

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Form [81B] - Foreign Tax Credit

Overview

Use this form to enter information to complete Form 1116, Foreign Tax Credit and the Foreign Tax Credit Worksheets.

Notes

To claim a deduction for foreign taxes rather than a credit, enter X in the Report all foreign tax as a deduction field on Form OthCr in the Credits folder.

If there is foreign source interest and/or dividends, you can enter the information required for Form 1116 at the same time you enter other income information on Form Income using the Interest income and/or Dividends fields.


Use this section to enter general information to complete Form 1116.

Category of income

Enter the code that represents the applicable category of income or use the fieldview to make the selection. ExacTax enters Code A, Passive income, if you enter information on Form Income. Code B, General limitation income, is the default if the field is blank.

Part I - Income / Loss

Use this section to enter foreign income and expense information for calculating the Form 1116, Page 1 Detail Worksheet. The fiduciary portion of the amounts on this worksheet are consolidated into one Form 1116 for each income category.

Name of country

Enter the name of the foreign country for Form 1116, Part I. This field is mandatory to complete Form 1116. If you entered information on Form Income, this field displays "Various".

Foreign source: Gross income

Enter the gross foreign income that corresponds to the country entered in the Name of country field. If you entered information on Form Income, the amount is displayed in this field. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Notes

Enter foreign source qualified dividends and gains included on Form 4952, line 4g. Do not include other foreign capital gain amounts entered on this form. Foreign capital gain adjustments calculated on the Foreign Tax Credit Worksheets, if applicable, adjusts the foreign gross income amount.

Enter 100 percent of the foreign gross income. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the foreign gross income between the estate or trust and its beneficiaries.


255

Foreign source: Qualified dividends

Enter foreign qualified dividends less the amount of foreign qualified dividends included on Form 4952, line 4g. Form 1116, line 1 is adjusted as necessary based on the Form 1116 instructions. Note that foreign qualified dividends are considered a portion of the ordinary dividends included in the Foreign source: Gross income field. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Note: Enter 100 percent of the foreign qualified dividends. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the foreign qualified dividends between the estate or trust and its beneficiaries.

Foreign source: Short-term… / Long-term capital gain / loss

Enter short-term and long-term foreign capital gains and losses to calculate the Foreign Tax Credit Worksheets. Enter long-term foreign capital gains less the amount for foreign source gains included on Form 4952, line 4g. Enter a loss as a negative number. ExacTax produces Worksheets A and B from the Form 1116 instructions for up to two categories of income. Form 1116, lines 1 and 5 are adjusted as necessary based on the results of these worksheets. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Note: Enter 100 percent of the foreign capital gain / loss. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the foreign capital gain / loss between the estate or trust and its beneficiaries.

Definitely related expenses

Enter deductions that relate directly to foreign gross income in this field. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Note: Enter 100 percent of the related expenses. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the related expenses between the estate or trust and its beneficiaries.

Pro rata share of: Itemized / standard deductions

ExacTax assumes that for the deductions that print on Form 1041, Page 1, lines 10 through 15b, only real estate taxes are allocable to foreign income. If this is not true, use this field to override the amount of itemized deductions that ExacTax calculates. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Notes

Enter 100 percent of the deductions. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the deductions between the estate or trust and its beneficiaries.

Because real estate taxes are an adjustment on Schedule I, ExacTax does not default an amount for alternative minimum tax purposes.

Pro rata share of: Other deductions


256

Enter the amount of other deductions allocable to the foreign gross income. ExacTax automatically calculates an AMT version of Form 1116 based on the information you enter. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Pro rata share of: Home mortgage interest

ExacTax does not include interest in its calculation of itemized / standard deductions. Enter the amount of home mortgage interest for Form 1116, line 4a to include interest in the calculation. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Pro rata share of: Other interest

ExacTax does not include interest expense in its calculation of itemized / standard deductions. Enter the amount of other interest for Form 1116, line 4b. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Foreign source losses

Enter the amount of foreign source losses (other than foreign source capital losses entered on this form) for Form 1116, line 5. If the amount should be different for alternative minimum tax purposes, enter the adjusted amount in the AMT, if different field.

Part II - Taxes Paid or Accrued

Use this section to complete Form 1116, Part II. ExacTax uses only the amounts entered in U.S. dollars to calculate the credit.

Date foreign taxes paid or accrued

Enter the date foreign taxes were paid or accrued using a MMDDYY format. Enter either V or a date of 999999 to print "Various" for the date.

Note: IRS Publication 1438 does not accept "Various" as a valid date entry for electronically filed returns. If you enter Various in the Date foreign taxes paid or accrued field, ExacTax uses the year-end date of the return for the electronic file.

In foreign currency …

In foreign currency denominations, enter the amount of taxes withheld on foreign dividend income, rents and royalties, and interest.

Note: Enter 100 percent of the taxes withheld in these fields. ExacTax uses entries made in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the taxes between the estate or trust and its beneficiaries.

In US dollars …

In U.S. dollars, enter the amount of taxes withheld on foreign dividend income, rents and royalties, and interest.

Notes

Enter 100 percent of the taxes withheld in these fields. ExacTax uses entries in the View > Beneficiary Information > Federal tab > Other Allocations group box to allocate the taxes between the estate or trust and its beneficiaries.

Because the category is not indicated, if taxes withheld shared data from a pass-through entity, the amount prints on the Rent and royalties field instead of the Dividends or Interest field.


257

Part III - Credit Calculation

Use this section to complete Form 1116, Part III.

Reduction in foreign taxes

Enter the description and amount of any reduction in foreign taxes the client is required to report on Form 1116, Part III for the category of income listed in the Form 1116, Foreign Tax Credit - General Information section.

Note: Enter only the estate’s or the trust’s portion of the reduction. ExacTax does not allocate this item between the fiduciary and the beneficiaries.

Adjustments

Enter the description and amount of any adjustments. This required information transfers to Form 1116, Part III for the category of income listed in the Form 1116, Foreign Tax Credit - General Information section.

Note: Enter only the estate’s or the trust’s portion of the adjustments. ExacTax does not allocate this item between the fiduciary and the beneficiaries.


258

Investment Tax Credit3468 (2016)

Rehabilitation Credits

Energy Credits

Other Investment Credits and Passive Carryovers

Description

Pre‐1936 buildingsCertified historic structures

Unused investment credit from cooperatives:

Prior year passive credit carryover:Part IIPart III

Basis of qualifying advanced coal project credit:

Advanced coal‐based generation property (Section 48A(d)(3)(B)(ii))

Basis of qualifying gasification project property:

Basis of property using solar illumination or solar energyBasis of property using geothermal or solar energy

Kilowatt capacity of fuel cell property acquired before October 4, 2008Basis of property acquired before October 4, 2008

Qualified fuel cell property:

Kilowatt capacity of microturbine propertyBasis of property installed during the tax year

Qualified microturbine property:

Unit

Form

Expenditures for:

Combined heat and power system property:Basis of property installed during the tax yearElectrical capacity if measured in megawattsElectrical capacity if measured in horsepower

Basis of geothermal heat pump systems

Advanced coal‐based generation property (Section 48A(d)(3)(B)(iii))

Integrated gasification combined cycle property (Section 48A(d)(3)(B)(i))

Property including sequestration equipmentOther property

Basis of qualified small wind energy property acquired:

Advanced energy project property

Basis of qualified investment credit facility property

Credit from electing large partnerships

Part III

After December 31, 2008After October 3, 2008

Basis of property acquired after October 3, 2008Kilowatt capacity of fuel cell property acquired after October 4, 2008

Basis of qualified investment in:

Part II

Basis of wind facility property

1

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34

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36

37

3468 81C

2016 FIDUCIARY1/23/2017 8:18:06 AM


259

Form [81C] - Investment Tax Credit

Overview

Use this form to enter information for the investment credit.

Rehabilitation Credits

Identification information

ExacTax transfers information from Form C, F, Income, or Rent to this section. You can modify the information in this section only by making changes on those forms.

Energy Credits

Basis of property using geothermal or solar energy / solar illumination or solar energy

ExacTax automatically transfers the basis of energy property acquired during the year from the Form 51. If you did not enter assets in the asset module, enter the amount in this field.

Other Investment Credits and Passive Carryovers

Prior year passive credit carryover

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the amount of the passive activity credit that was suspended in a prior year due to a limitation on Form 8582-CR.


260

Taxes Paid on Fuels Page 14136-1 (2016)

Gasoline

Aviation Gasoline

Undyed Diesel Fuel

Undyed Kerosene

Exported

Exported

Exported

Exported

Trains

Nontaxable use

Explanation of evidence of dyes

Other nontaxable useCommercial aviation (Other than foreign trade)

Other nontaxable useOn a farm for farming purposesOff‐highway business

RateType of Use

Type of Use Rate

Type of Use Rate # Gallons


On a farm for farming purposes

On a farm for farming purposes

# Gallons

Certain intercity and local buses

Nontaxable use taxed at .244



Nontaxable use taxed at .044 Nontaxable use taxed at .219

LUST tax on aviation fuels used in foreign trade

# Gallons

1 2

3 4

5 6 7

8 9

10 11

12 13 14

15 16

17 18

19

20 21 22

23 24

25 26

27 28

29 30

31

32 33 34

35 36

37 38

39 40

41 42 43

44 45 46

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261

Form [82A] - Taxes Paid on Fuels Page 1

Overview

Use this form to enter information to complete Form 4136, Page 1.

Rate

Enter the applicable rate per the form instructions for the period the credit is being claimed. The credit does not calculate unless both a rate and number of gallons are entered for a credit category.

# Gallons

Enter the number of whole gallons being claimed. The credit does not calculate unless both a rate and number of gallons are entered for a credit category.

Type of Use

Enter the type of use code for the fuel. The available codes appear in the fieldview.


Enter an explanation for evidence of visible dyes. If you enter information in this field, ExacTax marks the appropriate checkbox on Form 4136.


262


Kerosene Used in Aviation

Vendors of Undyed Diesel Fuel

Vendors of Undyed Kerosene

Vendors of Kerosene for Aviation


Registration number

Taxed at .219Taxed at .244

Nonexempt use in noncommercial aviationTaxed at .244Taxed at .219

Registration number



# GallonsRate

Rate # Gallons

State or local government

Registration number


State or local governmentSales from a blocked pump

To whom diesel fuel sold

To whom kerosene sold



RateType of Use

Type of Use Rate

LUST tax on aviation fuels

LUST tax on aviation fuels

# Gallons

# Gallons

Commercial aviation:

Nontaxable use:

Commercial aviation:

Other nontaxable uses:

1 2

3 4

5 6 7

8 9 10

11 12

13

14

15

16 17

18 19

20

21

22

23 24

25 26

27 28

29

30 31

32 33

34 35

36 37 38

39 40 41

42 43

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263

Form [82B] - Taxes Paid on Fuels Page 2

Overview


Rate


# Gallons


Type of Use


To whom diesel fuel sold

Enter customer information regarding the name and identification number of each farmer, custom harvester, or governmental unit to whom the diesel fuel was sold and the number of gallons sold to each.


Enter an explanation for evidence of visible dyes. If you enter information in these fields, ExacTax marks the appropriate checkboxes on Form 4136.

To whom kerosene sold

Enter customer information regarding the name and identification number of each farmer, custom harvester, or governmental unit to whom the kerosene was sold and the number of gallons sold to each.


264


Biodiesel or Renewable Diesel Mixture

Nontaxable Use of Alternative Fuel

Alternative Fuels

Biodiesel reseller statementRate # Gallons

Coal (Through the Fischer‐Tropsch process)Biomass

Natural (LNG)Derived from biomass

Liquid fuel derived from:

Liquefied gas:

Liquefied gas:

Liquid fuel derived from:

Derived from biomass

Compressed gas derived from biomass (GGE = 121 cu. ft.)

Registration number

Natural (LNG)

BiomassCoal (Through the Fischer‐Tropsch process)

Liquefied hydrogenCompressed natural gas (CNG) (GGE = 126.67 cu. ft.)P Series fuelsLiquefied petroleum gas (LPG)

Renewable diesel mixturesAgri‐biodiesel mixtures

# Gallons

# GallonsRateType of Use

Biodiesel (other than agri‐biodiesel) mixtures

Registration number

Liquefied petroleum gas (LPG)P Series fuelsCompressed natural gas (CNG) (GGE = 121 cu. ft.)Liquefied hydrogen

Rate

1

2

3 4

5 6

7 8

9 10 11

12 13 14

15 16 17

18 19 20

21 22 23

24 25 26

27 28 29

30 31 32

33

34 35

36 37

38 39

40 41

42 43

44 45

46 47

48 49

50 51

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265

Form [82C] - Taxes Paid on Fuels Page 3

Overview


Rate


# Gallons


Type of Use



266


Registered Credit Card Issuers

Diesel-Water Fuel

Exported Dyed Fuels

Nontaxable use of diesel‐water fuel emulsion:

Kerosene for use in aviation sold, use of state governmentKerosene sold, use of a state or local governmentDiesel fuel sold, use of a state or local government


# GallonsRate

Diesel‐water fuel emulsion informationRegistration number

Registration number

KeroseneDiesel fuel

Blender credit

Diesel‐water fuel emulsion blending:ExportedNontaxable use

Rate # Gallons1

2 3

4 5

6 7

8 9 10

11 12

13

14

15 16

17 18

19 20

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267

Form [82D] - Taxes Paid on Fuels Page 4

Overview


Rate

Enter the applicable rate per the form instructions for the period the credit is being claimed. ExacTax does not calculate the credit unless you enter both a rate and number of gallons for a credit category.

# Gallons

Enter the number of whole gallons being claimed. ExacTax does not calculate the credit unless you enter both a rate and number of gallons for a credit category.

Type of Use

Enter the type of use code for the fuel. The available codes are listed in the fieldview.

Diesel-water fuel emulsion information

Enter information regarding the water content, additive, and use of the fuel in the business.



268

4255

6FOTHCR 01 11/04/16

Investment Credit Recapture

[1]

FIDUCIARY

2016

ExacTax, Inc. 83

83

Bldg or EnergyProp Type

Property Type (40)#

[§ 1] Original investment credit information

General Information

Original (XX.XX)Credit Rate

CostBasis

Date inService

Date EndQualified Property

OthCrForm 1116 - Foreign Tax Credits

Form 3468-Investment Tax Credits

Election under section 47(d)(5) to take expenditures in year paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [8]

Form 3800-General Business Credits

Form 8582-CR-Election to Increase Basis of Credit Property

Name of activity disposed . . . . . . . . . . . . . . . .Description of credit property . . . . . . . . . . . . .Unallowed credit that reduced the basis in the property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[16]

[14][15]

Address (35)Lessor (35)#[§ 7] Election under section 48(d) to claim credit as a lessee

City(20) ZipState AmountDescription of Property(20)

Report all foreign tax as a deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Country of residence (if not United States). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[4][5]Gross income from all sources(Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[6]Reduction for international boycott operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Description (35)#[§ 4] Recapture of qualifying therapeutic discovery project grant

Grant Amount Received Grant Amount Allowed Excess to be Recaptured

Carryback

Additional Credit Information

[3][2]Allocate to income type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[9]

*Form 3800 - General Business Codes

3468A3468B5884647867658586A8586B8586C8586D8820882688348835A

- Investment credit, Part II- Investment credit, Part III- Work opportunity credit- Alcohol fuel credit- Research credit- Low inc housing pre 2008 (acq pre-90)- Low inc other credit post 2008- Low inc housing post 2007 (acq pre-90)- Low inc other post 2007- Orphan drug credit- Disabled access credit- Plug-in electric vehicle cr- Renewable electricity credit

8835B88448845884688648874888188828896890089068907

- Renew electric & ref coal cr- Empow zone/renew empl cr- Indian employment credit- Employer tips credit- Biodiesel fuels credit- New markets credit- Small employer pension plan cr- Employer child care credit- Low sulfur diesel fuel credit- Qual railroad track maint cr- Distilled spirits credit- Nonconventional source fuel cr

89088909891089118912892389318932893389368941PSHP

- Energy efficient home cr- Energy efficient appliance cr- Alternative motor vehicle refueling cr- Alt fuel vehicle refueling cr- Qualified tax credit bonds cr- Mine rescue team training cr- Agricultural chemicals sec cr- Employer diff wage pmt cr- Carbon dioxide credit- Plug-in elect drive motor cr- Small employer health ins cr- General cr from large p'ships

[9][§ 9]*Code

Form 6765-Research Activities Credit

Elect alternative simplified credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [10]

Elect reduced credit under section 280C(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [12]Fixed-base percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (xxx.xx) [11]

Description (50)#[§ 13] Deductions and capitalized expenses reduced by credit (Enter only if not electing the reduced credit)

Line No. Amount


269

Form [83] - Additional Credit Information

Overview

Use this form to enter additional credit information for Forms 1116, 3468, 3800, 6765, and 8582-CR.

Form 1116 - Foreign Tax Credits

Allocate to income type code / description

Enter a code to directly allocate foreign taxes to a specific category of income when the client claims the tax as a deduction instead of a credit or when the client includes the tax as an expense for accounting income purposes.

If you leave this field blank, ExacTax/1041 allocates the foreign tax expense indirectly to taxable income types, including capital gains to the extent that the gains are included in distributable net income if the Do not allocate indirect expenses against: Short-term gain / Long-term gains fields are blank on Form Allocate.

Country of residence (if not United States)

As a default, ExacTax prints "United States" on Form 1116, Page 1, line f. Use this field to enter different residence information.

Gross income from all sources (Force)

ExacTax calculates the gross income from all sources based on income amounts entered for the return and the detail prints in a not required statement for Form 1116, line 3e. Use this field to override the calculated amount.


270

Other Asset InformationOthAsset (2016)

Form 4562

Form 4797 Section 280F Deductions

Bonus Depreciation Elections

Allowable in prior years (Force)

Residential rental (27.5 year) property

Section 263A basis portion

Amortization, code section 167 ‐ computer software

25 year property20 year property15 year property10 year property7 year property5 year property3 year property

Nonresidential real (39 year) property

Recomputed depreciation (Force)

Elect out of bonus depreciation:

1

2

3

4

5

6

7

8

9

10

11

12

13

OthAsset 84

2016 FIDUCIARY1/23/2017 8:18:05 AM


271

Form [84] - Other Asset Information

Overview

Use this form to enter additional information for Form 4562 and Form 4797.

Form 4797 Section 280F Deductions

Allowable in prior years (Force) / Recomputed depreciation (Force)

The asset module calculates section 280F recapture amounts and transfers them to Form 4797, Part IV. If you are not using the asset input or you want to print an amount different from the calculated amount, enter the section 280F deductions in these fields.

Note: The recapture amount from the Form 51 or the amounts entered in these fields print only on Form 4797, Page 2. You must also enter the recapture amount as other income on the applicable activity form.


272

Tax Additional Taxes

6FTAX 01 11/07/16 FIDUCIARY

[2][3]

[5]

[1]

[6][7]

2016 86

ExacTax, Inc. 86

[4]

Low-income housing (Form 8611) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified electric vehilce (QEVCR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Indian employment (IECR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .New markets (NMCR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Employer-provided child care facilities (ECCFR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Alternative motor vehicle (AMVCR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Alternative fuel vehicle refueling property (ARPCR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[9][10]

[8]Household employment taxes (Schedule H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest on certain nondealer real property installment obligations (Section 453A(c)) . . . . . . . . . . . . . . . . . . . . . . . .Accumulation distribution of trusts (Form 4970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest under look-back method for long-term contracts (Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest under look-back method for income forecast method (Form 8866) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest from certain constructive ownership transactions (Section 1260(b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Qualified plans and other tax-favored accounts (Form 5329) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[11][12][13][14]

Credit Recaptures

Additional Taxes


273

Form [86] - Additional Taxes

Overview

Use this form to enter other taxes for Form 1041, Page 2, Schedule G.

Credit Recaptures

Low-income housing (Form 8611)

Enter the amount of credit recapture from Form 8611. This amount can be allocated between the trust and beneficiaries based on information on Form Allocate or in the View > Beneficiary Information > Federal tab. The trust’s portion of this credit recapture transfers to Form 1041, Page 2, Schedule G, line 5; any portion allocated to beneficiaries is reported on Schedule K-1 or the Grantor / Agency Report.

Qualified electric vehicle (QEVCR)

Enter the amount of credit recapture from the Qualified Electric Vehicle Credit originally claimed on Form 8834. ExacTax transfers the amount to Form 1041, Page 2, Schedule G, line 5. This credit can be allocated only to beneficiaries on a grantor trust.

Indian employment (IECR)

Enter the amount of credit recapture from the Indian Employment Credit originally claimed on Form 8845. This amount can be allocated between the trust and beneficiaries based on information on Form Allocate or in the View > Beneficiary Information > Federal tab. The trust’s portion of this credit recapture transfers to Form 1041, Page 2, Schedule G, line 5. Any portion allocated to beneficiaries is reported on Schedule K-1 or on the Grantor / Agency Report.

New markets (NMCR)

Enter the amount of credit recapture from the New Markets Credit originally claimed on Form 8874. ExacTax transfers the amount to Form 1041, Page 2, Schedule G, line 5. This credit can be allocated only to beneficiaries on a grantor trust.

Employer-provided child care facilities (ECCFR)

Enter the amount of credit recapture from the Employer-provided Child Care Facilities Credit originally claimed on Form 8882. The trust’s portion of this credit recapture transfers to Form 1041, Page 2, Schedule G, line 5. Any portion allocated to beneficiaries is reported on Schedule K-1 or the Grantor / Agency Report.

Alternative motor vehicle (AMVCR)

Enter the amount of credit recapture from the Alternative Motor Vehicle Credit originally claimed on Form 8910. ExacTax transfers the amount to Form 1041, Page 2, Schedule G, line 5. This credit can be allocated only to beneficiaries on a grantor trust.

Alternative fuel vehicle refueling property (ARPCR)

Enter the amount of credit recapture from the Alternative Fuel Vehicle Refueling Property Credit originally claimed on Form 8911. ExacTax transfers the amount to Form 1041, Page 2, Schedule G, line 5. This credit can be allocated only to beneficiaries on a grantor trust.


274

Additional Taxes

Household employment taxes (Schedule H)

Enter the amount of household employment taxes that was calculated on Schedule H. This amount transfers to Form 1041 or a statement attached to Page 2, Schedule G, line 6.

Note: Schedule H is available as a non-calculating form.

Interest on certain nondealer real property installment obligations (Section 453A(c))

Enter the amount of interest due under section 453A(c). ExacTax prints "Section 453A(c) interest" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.

Accumulation distribution of trusts (Form 4970)

Enter the amount of tax from the accumulation distribution of trusts that was received on Form 4970 from another trust. ExacTax prints "From Form 4970" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.

Note: Form 4970 is available as a non-calculating form.

Interest under look-back method for: Long-term contracts (Form 8697)

Enter the amount of interest due under the look-back method of section 460(b)(2) that was reported to the trust on Form 8697. ExacTax prints "From Form 8697" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.


Interest under look-back method for: Income forecast method (Form 8866)

Enter the amount of interest due under the look-back method of section 167(g)(2) that was reported to the trust on Form 8866. ExacTax prints "From Form 8866" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.


Interest from certain constructive ownership transactions (Section 1260(b))

Enter the amount of interest due under section 1260(b) on any deferral of gain from certain constructive ownership transactions. ExacTax prints "1260(b)" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.

Qualified plans and other tax-favored accounts (Form 5329)

Enter the amount of excise tax that was calculated on Form 5329. ExacTax prints "From Form 5329" and the amount on Form 1041 or on a statement attached to Page 2, Schedule G, line 7.



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Alternative Minimum TaxAMT (2016)

Schedule I - Adjustments and Preference Items

Schedule D - Items Recalculated for AMT

Elect simplified foreign tax credit limitationAlternative minimum tax foreign tax credit (Force)

Short‐termLong‐term (including all components)28% rate

Partnerships or S corporationsREITs or mutual fundsSale of partnership

Schedule I, line 58 (Schedule D, line 26 or Worksheet, line 13) (Force)

Unrecaptured section 1250 gain worksheet adjustments:

Other estates and trustsElecting large partnershipsDisposition of property (Force)Post '86 depreciation adjustment (Force)Passive activities (Force)Loss limitationsCirculation costsLong‐term contractsMining costsResearch and experimental costsIncome from certain installment salesIntangible drilling costsOther adjustmentsAlternative minimum tax net operating loss carryback (Force)Adjusted tax‐exempt interest (Force)

Alternative minimum tax worksheet, gain or loss adjustment:

Line 26 recalculation:

Certain home mortgage interestTax refunds (Force)DepletionInterest from specified private activity bonds (Force)Qualified small business stock (Force)Incentive stock options

Schedule I, line 60 (Schedule D, line 26 or Worksheet, line 10) (Force)

Qualified dividend

Other adjustments

ESBTOther

Adjust fiduciary portion of qualified dividends based on AMT income distribution deduction

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276

Form [87A] - Alternative Minimum Tax

Overview

Use this form to enter information to complete Schedule I.

Schedule I - Adjustments and Preference Items

Tax refunds (Force)

Enter any refunds received in the current year for state, local, or foreign real property taxes; state or local personal property taxes; and state, local, or foreign income taxes reported on Form 1041, line 11. If you leave this field blank, ExacTax completes Schedule I, line 5 with amounts entered in the Other income field on Form Income with state use code 2.

Interest from specified private activity bonds (Force)

ExacTax automatically calculates the amount of net interest from specified private activity bonds. This calculation prints on the Schedule I, Adjusted Tax-Exempt Interest Worksheet. Use this field to override the amount for line 8.

Qualified small business stock (Force)

Use this field to override the adjustment for the section 1202 exclusion. ExacTax calculates this amount from the section 1202 exclusion on Schedule D. This amount transfers to Schedule I, line 9.

Other estates and trusts

Enter the adjustment from other estates and trusts. ExacTax combines this amount with information entered in the Adjustment for minimum tax purposes field in nonpassive units of Form K1T-2 and transfers the amount to Schedule I, line 11.

Disposition of property (Force)

ExacTax completes Schedule D on a regular tax basis, as well as on an alternative minimum tax basis. ExacTax reports the difference between the gains or loss calculated using these two methods on the bottom of the Schedule D - Recomputed for Alternative Minimum Tax Worksheet and on Schedule I, line 13. Use this field to override the amount on line 13.

Post ’86 depreciation adjustment (Force)

The asset module calculates the post-1986 preference amount and allocates the amount attributable to passive activities to Schedule I, line 15, Passive activities, and the balance to line 14. ExacTax calculates line 14 from this field and from information entered in nonpassive units of Forms C-2, F-2, K1-3, and Rent-2. Use this field to override the amount on line 14.

Passive activities (Force)

ExacTax completes Form 8582 on a regular tax basis as well as on an alternative minimum tax basis. ExacTax reports the difference between the income or loss calculated using these two methods on Schedule I, line 15. Use this field to override the amount on line 15.

Circulation costs

Enter the adjustment for circulation costs. ExacTax combines this amount with information entered in nonpassive units of Forms C-2, F-2, K1-3, and Rent-2 and transfers the amount to Schedule I, line 17.


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Long-term contracts

Enter the adjustment for long-term contracts. ExacTax combines this amount with information entered in nonpassive units of Form K1-3 and transfers the amount to Schedule I, line 18.

Mining costs

Enter the adjustments for mining costs. ExacTax combines this amount with information entered in nonpassive units of Forms C-2, F-2, K1-3, and Rent-2 and transfers the amount to Schedule I, line 19.

Research and experimental costs

Enter the adjustment for research and experimental costs. ExacTax combines this amount with information entered in nonpassive units of Forms C-2, F-2, K1-3, and Rent-2 and transfers the amount to Schedule I, line 20.

Intangible drilling costs

Enter the adjustment for intangible drilling costs. ExacTax combines this amount with information entered in nonpassive units of Forms C-2, F-2, K1-3, and Rent-2 and calculated by the ExacTax/Oil & Gas module and transfers the amount to Schedule I, line 22.

Other adjustments

Enter other adjustments. ExacTax combines this amount with amounts entered elsewhere, including amounts entered in the Amortization field of the Alternative Minimum Tax Items section in nonpassive units of Form K1T-2 and transfers the amount to Schedule I, line 23.

Alternative minimum tax net operating loss carryback (Force)

If this is an amended return, enter the amount of AMT net operating loss carryback from later years. If you leave this field blank, ExacTax uses the amount from the Net operating loss carryback field on Form Deduct to calculate the current deduction.

Note: Enter net operating loss carryovers from previous years in the 15 Year Carryover Items section on Form CO in the Carryovers & NOL folder.

Adjusted tax-exempt interest (Force)

ExacTax automatically calculates the amount of adjusted tax-exempt interest. The calculation prints on the Schedule I, Adjusted Tax-Exempt Interest Worksheet. Use this field to override the amount for line 31.

Elect simplified foreign tax credit limitation

Enter X to elect the simplified foreign tax credit limitation. This election is a global election for this return and is applicable to all units of Form 1116. If you enter X in this field, ExacTax uses regular tax income for Form 1116, Part I instead of recalculating the foreign source income for the AMT version of Form 1116. For more information regarding data entry for the foreign tax credit when making this election, see Taking foreign taxes paid as a deduction or credit.

Alternative minimum tax foreign tax credit (Force)

ExacTax automatically calculates the amount of AMT foreign tax credit. This amount transfers to Schedule I, line 53. Use this field to override the calculated amount.


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Schedule D - Items Recalculated for AMT

Alternative minimum tax worksheet, gain or loss adjustment: Short-term

If the return is an ESBT with non-S Corporation income, enter the amount of the net short-term capital gain /loss adjustment for AMT purposes in the ESBT field and enter the amount of the net short-term capital gain / loss adjustment for AMT purposes for the remainder of the trust in the Other field. ExacTax prints these amounts on the Schedule D - Recomputed for Alternative Minimum Tax Worksheet.

Alternative minimum tax worksheet, gain or loss adjustment: Long-term (including all components)

If the return is an ESBT with non-S Corporation income, enter the amount of the total net long-term capital gain or loss adjustment for AMT purposes in the ESBT field and enter the amount of the total net long-term capital gain or loss adjustment for AMT purposes for the remainder of the trust in the Other field. ExacTax prints these amounts on the Schedule D - Recomputed for Alternative Minimum Tax Worksheet.

Alternative minimum tax worksheet, gain or loss adjustment: 28% rate

If the return is an ESBT with non-S Corporation income, enter the amount of the 28-percent rate net capital gain or loss adjustment for AMT purposes in the ESBT field and enter the amount of the 28-percent rate net capital gain or loss adjustment for AMT purposes for the remainder of the trust in the Other field. ExacTax prints these amounts in the AMT column of the Schedule D Unrecaptured Section 1250 Gain Worksheet.

Alternative minimum tax worksheet, gain or loss adjustment: Qualified dividend

If the return is an ESBT with non-S Corporation income, enter the amount of the total qualified dividend adjustment for AMT purposes in the ESBT field and enter the amount of the total qualified dividend adjustment for AMT purposes for the remainder of the trust in the Other field.

Line 26 recalculation: Schedule I, line 58… (Force)

ExacTax/1041 calculates an amount for Schedule D, line 26 or the Capital Gain Tax Worksheet, line 13 refigured for AMT. The calculation prints on the Schedule D AMT Worksheet. Use this field to override the amount ExacTax/1041 calculates for Schedule I, line 58.

Line 26 recalculation: Schedule I, line 60… (Force)

ExacTax/1041 calculates an amount for Schedule D, line 26 or the Capital Gain Tax Worksheet, line 10 refigured for AMT. The calculation prints on the Schedule D AMT Worksheet. Use this field to override the amount ExacTax/1041 calculates for Schedule I, line 60.


279

Section 645 Election8855 (2016)

Form 8855

Qualified Revocable Trust Information

Date of executor's appointment

Amended election

Name of trust

Name of trusteeAddressCity, state, zip code

Type of entity prior to election (1 = Domestic estate, 2 = Domestic trust, 3 = Foreign estate, 4 = Foreign trust )

Name of decedent

Employer identification numberName of trust

Name of trusteeAddressCity, state, zip code

Employer identification number

Election made in prior year

Name, continued

Name, continued

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Form [88] - Section 645 Election

Overview


Form 8855

Use this section to enter general information about the entity making the election.

Election made in prior year

Enter X if the election was made in the prior year and you want the box marked on Form 1041, Page 1, Item G without Form 8855 printing in the current year.

Qualified Revocable Trust Information

Use this section to complete Form 8855, Part III.


Enter the trust’s Employer Identification Number (EIN). ExacTax uses this information for data sharing.

Trust information

Enter each trust’s name, trustee name, and address. Note that if the data sharing feature is enabled, ExacTax completes these fields based on the Employer Identification Number (EIN) if you have entered information for this trust for another client.


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Two Year Comparison2Year (2016)

Income

Deductions

Taxes and Payments

Other Information

Form 5227 Information

Estates / trustsInterest incomeOrdinary dividends

Other income

Interest Other deductions, not 2%Taxes Miscellaneous deductionsFiduciary fees Income distribution deductionCharitable deduction Estate tax deductionAttorney and accountant Exemption

Tax on taxable income Estimated tax paymentsAlternative minimum tax Tax withheldForeign tax credit Other paymentsOther taxes Estimated tax penaltyOther credits Other penalties

Qualified dividendsAdjusted tax exempt interestDistributable net incomeAccounting income

Distributions

Ordinary incomeCapital gain or (loss)Nontaxable income

Enter amounts from 2015 form

Partnerships / S corporations

Business income or (loss) Farm income or (loss)Capital gain or (loss) Ordinary gain or (loss)Rent, royalty, farm rental

Undistributed:

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Form [89] - Two Year Comparison

Overview

Use this form to enter information to complete the Two Year Comparison Worksheet. Enter information from the prior year’s tax form.

Income

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, enter the prior-year amounts. ExacTax completes the column for the current year on the worksheet based on amounts in the return and calculates the difference.

Deductions


Taxes and Payments


Other Information


Form 5227 Information



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Only use this form to enter text for a box that says "See Form Exp" or "Explain". Enter the form, unit (if applicable) and [§ #] zipbox that each explanation applies to. Continue the explanation on succeeding lines until complete. Begin a new explanation byentering a new form, unit and box.

45InstPY 1

1040

Universal Explanation

6IUNVEXP 01 11/01/16

Description (74)

Overflow 2016

Form Unit § Box

The explanation above is continued on the next page

73 This is an example of how to enter a general footnote. If your explanation runs outof space or you want multiple lines, then just continue on the next line.

You may enter explanations for more than one form on the same page.

ExacTax, Inc. 90ALL SYSTEMS

1

90Only use this form to enter text for a box that says "See Form Exp". Enter the form, unit (if applicable) and zip boxthat each explanation applies to. Continue the explanation on succeeding lines until complete. Begin a newexplanation by entering a new form, unit and box.

EXP


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Form [90] – Universal Explanation and General Footnotes

Overview Use Form 90 to enter text for general footnotes and for other text areas that do not have a designated space to enter the text on the input form. Text can not be entered for every zip box on every form. To enter text, the label of the zip box on the target form must read “Enter explanation” or “See Form [90]”. Each entry on Form 90 must specify the input form and zip number that the text is to be keyed in.

Universal Explanations Input Form 1, #63 General Footnotes: To create a general footnote, enter “1040” in the Form, ‘1’ in the Unit and ‘63’ in the Box. Enter text for as many lines as you need. A separate supporting schedule titled “General Footnotes” will be printed at the end of the return. This statement will also be included as part of the electronic file when e-filing is used.

All other explanations and text entries: If a zip box on an input form says “Enter explanation” or “See Form [90]” then Form [90] may be used to enter the text. For each line you must first enter the form name from the left-hand corner of the input form. This is not the ExacTax form number. Enter the Unit Number of the form, if applicable, and the zip box to be entered.

Collate each Form [90] behind the form that the text is to be entered on. For example, when creating a general footnote, collate the Form [90] directly behind Form [1].


285

Net Operating Loss ComputationNOL (2016)

General Information

Net Operating Loss

ESBTESBT Alternative minimum tax


Other ESBTRegular Alternative Minimum Tax

Adjustments to business:

Business state and local:

Capital lossesCapital gains

Adjustments to nonbusiness:

Elect to relinquish carryback of NOL incurred during the current tax year (Election automatically prints)

Business capital loss carryoverRefundsTaxes paid

Adjustments to taxable income

IncomeDeductionsCapital gainsCapital losses

Method used to figure prior year taxNet operating loss causes release of foreign tax credit or other tax creditCarryback includes loss or credit from registered tax shelterPetition filed in Tax Court for year(s) to which carryback appliesDate permission granted for accounting period changeIf unused credit created by another carryback, enter tax year end of first carrybackUnused general business credit

Net operating loss (Force):

Carryback period code / description

Alternative Minimum TaxRegular

Adjustment fields are for the NOL Worksheets and Form 1045 Schedule A computations only

NOL deduction statement (ELF only)

Regular

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286

Form [91A] - Net Operating Loss Computation

Overview

Use this form to enter information to calculate a current-year net operating loss for Form 1045 or to carry forward to a future year.

General Information

Use this section to enter information to complete the General Information section of Form 1045, Page 1.

NOL deduction statement

Enter an explanation in the field detailing how the Net Operating Loss occurred.

Carryback period code / description

Enter the carryback period or use the fieldview to make the selection. This entry is required for ExacTax to calculate Form 1045.

Note: If the NOL consists of a combination of regular, eligible, or farming losses, enter the longest carryback period in this field.

To calculate a four-year or five-year carryback of a farming loss, you must have two units of Form NOL-2 in the Carryovers & NOL folder. In the first unit, enter information for the third, second, and first preceding tax years. In the second unit, enter information for the fifth and fourth preceding tax years.

Elect to relinquish carryback of NOL incurred during the current tax year

If this field is marked, ExacTax prints the election to relinquish the NOL carryback.

To relinquish a farming loss carryback, select NOL Carryback for Farming Loss in the Elections: Number field on Form Elect.

Net operating loss (Force)

Enter an amount to override the calculated amount for the current-year net operating loss.

Unused general business credit

Enter an amount for the unused general business credit.

Note: Also, enter the amount of general business credit used in carryback years on Form CO in the Carryovers & NOL folder to calculate the correct general business credit carryover to next year.

Petition filed in Tax Court for year(s) to which carryback applies

Enter X if a petition has been filed. If you leave this field blank, ExacTax defaults to No for Form 1045, line 7.

Carryback includes loss or credit from registered tax shelter

Enter X if the carryback includes a tax shelter amount. If you leave this field blank, ExacTax defaults to No for Form 1045, line 8.


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Net operating loss causes release of foreign tax credit or other tax credit

Enter X if the NOL causes the release of a credit or credits. If you leave this field blank, ExacTax defaults to No for Form 1045, line 9.

Method used to figure prior year tax

In the field, enter an explanation of the method used. Enter the prior-year income tax amounts in the Income tax fields on Form NOL-2.

Net Operating Loss

Use this section to enter information to calculate the current-year net operating loss and the net operating loss deduction. Entries in this section adjust both the Net Operating Loss Worksheet 1 and Form 1045, Schedule A.

Adjustments to nonbusiness and business items

Enter the adjustment amount. Your entry does not override the amount ExacTax calculates; it increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.

Adjustments to taxable income

Enter the amount to adjust the calculated current-year taxable income for the NOL Worksheet 2. Your entry does not override the amount ExacTax calculates; it increases or decreases the calculation as appropriate. ExacTax uses this field to calculate only the NOL worksheet and not Form 1045.

Business portion of state / local: Taxes paid

Enter the amount of state and local tax expense attributable to business income. This amount reduces the calculated amount of nonbusiness deductions on Form 1045, Schedule A, line 6.

Business portion of state / local: Refunds

Enter the amount of state and local tax refunds attributable to business income. This amount reduces the calculated amount of nonbusiness income on Form 1045, Schedule A, line 7.

Business capital loss carryover

Enter the amount of business capital loss carryovers. Enter this amount as a positive number. This amount reduces the calculated amount of business capital losses on Form 1045, Schedule A, line 2.


288

Net Operating Loss CarryoversNOL-2 (2016)

Computation of Decrease in Tax

Schedule B - NOL Carryover

NOL Carryover - Electing Small Business Trust

Exemption

3rd Preceding Tax Year 2nd Preceding Tax Year 1st Preceding Tax Year

Taxable incomeCharitable deductionSection 1202 exclusion

Adjustments to adjusted gross incomeAdjustments to itemized deductions

Domestic production activities deduction

Alternative minimum tax:Taxable income

Adjustments to itemized deductionsAdjustments to adjusted gross income

Adjustments to adjusted gross incomeAdjustments to itemized deductions

Income distribution deductionTaxable income

Alternative minimum tax:


Adjustments to itemized deductionsAdjustments to adjusted gross income

Section 1202 exclusionNet capital loss deductionIncome distribution deductionCharitable deductionTaxable income (Force)

Claim of right adjustment

Taxes

CreditsGBCAlt min taxIncome taxExemptionsDeductionsAGI

Tax year ended

1st Preceding Tax Year2nd Preceding Tax Year3rd Preceding Tax Year

CarrybackCarrybackCarrybackCarrybackCarrybackCarrybackAfterBeforeAfterBeforeAfterBefore

1st Preceding Tax Year2nd Preceding Tax Year3rd Preceding Tax Year

NII tax

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289

Form [91B] - Net Operating Loss Carryovers

Overview

Use this form to enter information to adjust the current-year net operating loss and to calculate Form 1045, Schedule B, NOL carryover.

Prior-year returns

ExacTax cannot recalculate the prior-year tax returns. Therefore, complete the following steps before you complete Form NOL-2.

1. Obtain copies of the original returns for years to which you are carrying information back.

2. Recalculate the prior year’s tax returns that are affected by the carryback. In other words, if there is a current-year NOL and you are carrying the NOL back to preceding tax years, recalculate the prior-year returns, taking the carryback into consideration.

3. Use the original returns and the recalculated returns to complete Form NOL-2.

Notes

Form NOL-2 allows multiple units. When the NOL carryback eliminates or reduces a general business credit in any earlier year, you may be able to transfer back the released credit three more years. If you carry back the unused credit to tax years before the three years preceding the current tax year, a second Form 1045 is required.

To calculate a five-year carryback of a farming loss, you must have two units of Form NOL-2. In the first unit, enter information for the third, second, and first preceding tax years. In the second unit, enter information for the fifth and fourth preceding year information.

If you use an amended Form 1041 instead of Form 1045 to request a refund, you can use Form 1045, Schedules A and B as attachments to Form 1041.

Computation of Decrease in Tax

Use this section to enter information to complete the corresponding section of Form 1045, Page 1.

Tax year ended

ExacTax defaults to the three tax year ends preceding the current year. To change the calculated date, enter a date in these fields.

Note: If filing the Form 1045 to carry back a general business credit released by the previous carryback of a net operating loss, enter the year to which the credit is being carried.

Income tax

Enter the income tax before and after the carryback. Use the field for the Method used to figure prior year tax field on Form NOL to explain the method used to figure the tax.

Credits

Use the field to identify the credits for line 20.


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If a nonrefundable credit was limited to a tentative minimum tax in a preceding tax year, enter the limited credit amount in this field.

Taxes

Use the field to identify the other taxes for line 24.

Schedule B - NOL Carryover

Use this section to enter information to complete Form 1045, Schedule B.

Adjustments to itemized deductions

If miscellaneous deductions subject to the two-percent limitation were taken for any of the tax years to which the loss is carried back, use these fields to enter any adjustment to the deduction amount allowed.

NOL Carryover - Electing Small Business Trust

Use this section to enter information to complete the Form 1045 Worksheet for Electing Small Business and Qualified Subchapter S Trust.

Adjustments to itemized deductions

If miscellaneous deductions subject to the two-percent limitation were taken for any of the tax years to which the loss is carried back, use these fields to enter any adjustment to the deduction amount allowed.


291

Power of Attorney and Tax Information AuthorizationPOA (2016)

General Information

Representative Information

Tax Matters Information

Acts Authorized or Deleted

Power of attorney / Tax information authorization (1 = Form 2848, 2 = Form 8821, 3 = Both)

IRS Service Center for power of attorneySend copies of notices to representative(s) for Form 2848 (Blank = 1st rep, 1 = 2nd rep, 2 = 1st and 2nd reps, 3 = No reps)

Send no notices to Form 8821 appointee

Representative or appointee information

Specific use not recorded on Centralized Authorization File (CAF)Authorized acts:

Disclosure to third partiesSubstitute or add representativeSigning a return (Use code 1, 2, or 3 if signing as a representative. Use code 4, 5, or 6 if signing as an agent.)

OtherDeletions to acts authorized for Form 2848Prior power of attorney still in effect

Type of Tax Tax Form Number Year(s) or Period(s) Specific Tax MattersForm 8821 Only

Representative information can be added under Setup > System/Office Configuration >Preparers

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292

Form [92] - Power of Attorney and Tax Information Authorization

Overview

Use this form to enter information for power of attorney and tax information authorization. ExacTax uses this information to complete Forms 2848 and 8821.

General Information

Use this section to enter general form information and information about authorized acts.

Power of attorney / Tax information authorization

Use this field to select Form 2848, 8821, or both. If you leave this field blank, neither form prints. This field is mandatory for printing the selected forms.

IRS Service Center for power of attorney

The state postal code entered in Form 1041 is used to determine the appropriate POA Service Center to which you should send Form 2848 and 8821.

Representative / Information

Use the field in this section to enter information about the representatives or appointees receiving the authorization.

Tax Matters Information

Use this section to enter information about the tax matters to list on the form.

Type of Tax / Tax Form Number / Year(s) or Period(s)

Enter information about the particular tax matters. ExacTax uses this information to complete Form 2848, line 3 or Form 8821, line 3, columns (a) through (c).

Form 8821 Only Specific Tax Matters

Enter information about specific tax matters. ExacTax uses this information to complete Form 8821, line 3, column (d).

Specific use not recorded on Centralized Authorization File (CAF)

Enter X if the power of attorney or authorization is for a specific use not recorded on CAF. ExacTax uses this information to complete Form 2848, line 4 or Form 8821, line 4.

Authorized acts

Enter X for all applicable authorized acts. ExacTax uses this information to complete Form 2848, line 5. Note that these fields are not applicable to Form 8821.

Deletions to act authorized for Form 2848

Enter any specific deletions to the acts listed on Form 2848, line 5.


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Prior power of attorney still in effect

Enter X if prior powers of attorney or authorizations are not being revoked. ExacTax uses this information to complete Form 2848, line 6 or Form 8821, line 6.


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Asset Acquisition Statement8594 (2016)

General Information

Original Statement of Assets Transferred

Supplemental Statement

Identification number

Complete only if amending original or previously filed statement due to increase or decrease in consideration

Other party's:

Reason(s) for increase or decreaseClass VI and VIIClass VClass IVClass IIIClass IIClass I

of Sales PriceRedetermined Allocation

as Previously ReportedAllocation of Sales Price

Return form number original Form 8594 filed with, if different from currentTax year original Form 8594 filed

Buyer and seller agreement entered into and maximum amount of consideration paidIf yes, aggregate FMV for each class agreed upon in sales contract (1 = Yes, 2 = No)Purchaser and seller provided allocation of sales price (1 = Yes, 2 = No)Class VI and VIIClass VClass IVClass IIIClass IIClass I

Sales PriceAllocation of

Market ValueAggregate Fair

Total sales price (Force)Date of sale

City, state, zip codeAddressName

Identifier (1 = Purchaser, 2 = Seller)


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Form [93] - Asset Acquisition Statement

Overview


General Information

Enter information in this section to complete Form 8594, Part I.

Identifier

Enter 1 for Purchaser or 2 for Seller. You must enter information in this field to calculate Form 8594.

Total sales price (Force)

ExacTax automatically calculates the total sales price based on entries in the Allocation of Sales Price fields in the Original Statement of Assets Transferred section. Enter an amount to override the calculated amount.

Original Statement of Assets Transferred

Enter information in this section to complete Form 8594, Part II.

Aggregate Fair Market Value

Use these fields to enter the aggregate fair market value of the assets transferred. ExacTax transfers these amounts to Form 8594, Page 1, line 4, Aggregate fair market value.

Allocation of Sales Price

Use these fields to enter the allocation of sales price value of the assets transferred. ExacTax transfers these amounts to Form 8594, Page 1, line 4, Allocation of sales price. ExacTax uses the total of these fields as the total sales price for Form 8594, Page 1, Part I, line 3.

Purchaser and seller provided allocation of sales price

Enter 1 for Yes, 2 for No, or select the code from the fieldview. If you leave this field blank, ExacTax marks Yes on Form 8594, Page 1, Part I, line 5.

If yes, aggregate FMV for each class agreed upon in sales contract

Enter 1 for Yes, 2 for No, or select the code from the fieldview. If you leave this field blank, ExacTax marks Yes on Form 8594, Page 1, Part I, line 5.

Buyer and seller agreement entered into and maximum amount of consideration paid

Specify the type of agreement and consideration paid or to be paid under the agreement if the purchaser also purchases a license or covenant not to compete, or enters into a lease agreement, employment contract, management contract, or similar arrangement with the seller.


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Supplemental Statement

Enter information in this section to complete Form 8594, Part III only if you are amending an original or previously filed statement.

Tax year original Form 8594 filed

Enter the tax year from the originally filed Form 8594. If you leave this field blank, ExacTax defaults to the current tax form being filed.

Allocation of Sales Price as Previously Reported

Use these fields to enter the allocation of sales price as previously reported for Part III. ExacTax calculates the increase or decrease based on the amounts you entered in these fields and the amounts you entered in the Redetermined Allocation Sales Price fields.

Redetermined Allocation of Sales Price

Use these fields to enter the redetermined allocation of sales price for Part III. ExacTax calculates the increase or decrease based on the amounts you entered in these fields and the previously reported sales price, which is entered in the Allocation of Sales Price as Previously Reported fields.


297

Domestic Production Activities8903 (2016)

Form 8903

Form W‐2 wages

Allocable cost of goods sold

Form W‐2 wages from pass‐through entities

Qualified production activities income from pass‐through entitiesDirectly allocable deductions, expenses, or losses

Domestic production gross receipts

Domestic production activities deduction from cooperatives

TotalOil‐Related Activities

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298

Form [94] - Domestic Production Activities

Overview

Use this form to enter information for Form 8903, Domestic Production Activities Deduction.

Domestic production amounts

Enter domestic production activity information from pass-through activities on Form K1-2 in the K1 1065, 1120S folder and Form K1T-2 in the K1 1041 folder. Use these fields to enter the domestic production activity information from other activities.


299

Amended ReturnAmend (2016)

General Information

Underpayment penalty on original returnRefund shown on original return

Paid with original return

Explanation of changes (Press F1 for important information if amending IL, MA, MN, or PA)

Amounts as previously reported:

Overpayment applied on original return

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300

Form [95A] - Amended Return

Overview

Use this form to describe changes to the return and enter any amounts previously reported to the IRS.

General Information

Explanation of changes

Enter an explanation for the amendments and identify the lines and amounts being changed on the amended return. If you enter information in this field, ExacTax marks the amended return checkbox on Form 1041, Form 1041-QFT, Schedule K-1, and the Grantor / Agency Report, displays "Amended Return" on the top of Form 1041-A, and "AMENDED" on the top of Form 1040NR. To indicate Form 5227 is amended, enter the explanation in the Amended return explanation field on Form SIT in the Split-Interest folder.

If you are amending a return for Illinois, Massachusetts, Minnesota, or Pennsylvania, you must enter X in the Transfer original information field on Form Amend for the applicable state before you change any information at the federal level so ExacTax will complete the fields with the original information.


Amounts as previously reported: Paid with original return

Enter the amount of tax paid on the original return. If there is information entered in the Explanation of changes field, the paid amount is included in the payments line on the applicable Form 1041, 1041-QFT, or 1040NR.

Amounts as previously reported: Overpayment applied on original return

Enter the amount of overpayment applied on the original return. If there is information entered in the Explanation of changes field, the overpayment applied reduces the payments line on the applicable Form 1041, 1041-QFT, or 1040NR.

Amounts as previously reported: Refund shown on original return

Enter the amount of refund shown on the original return. If there is information entered in the Explanation of changes field, the refund amount reduces the payments line on the applicable Form 1041, 1041-QFT, or 1040NR.

Amounts as previously reported: Underpayment penalty on original return

Enter the underpayment penalty paid with the original return. If there is information entered in the Explanation of changes field, the penalty amount is included on Form 1041, 1041-QFT, or 1040NR and Form 2210 or Form 2210-F, as applicable, does not calculate or print.


301

Consent to Disclose, Use Tax ReturnConsent (2016)

Taxpayer Consent

Date consent will expire if other than one yearRecipient(s) of tax return information:

Specific uses of tax return information:

Consent received from taxpayer

Options entered here will be used to produce a Consent letter that will print with the tax return only. To select the Taxpayer Consentletter to print globally for all clients, choose Setup > 1041 Fiduciary > Federal > Other Return Options, Consent tab. Enable eSignaturefor a nominal per envelope fee at Setup > Office Configuration > eSignature tab. To print the Taxpayer Consent letter with theOrganizer, use Screen OrgCon in the Organizer folder. Thomson Reuters recommends seeking counsel from your own legal advisorfor the specific requirements regarding IRC Section 7216.

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302

Form [95C] - Consent to Disclose, Use Tax Return

Overview Note: If consent to disclose or consent to use information has been entered on this form for a client, this information supersedes the information in the Setup > 1041 Fiduciary > Other Return Options > Consent tab.

Taxpayer Consent

Use this section to enter information to prepare the Consent to Disclosure and/or Use Tax Information.

Date consent will expire if other than one year

Enter the date the consent will expire. All consents are written with an expiration date of one year from the date printed if no expiration date is specified. If you leave this field blank, the letter will indicate the consent is good for one year.

Recipient(s) of tax return information

Indicate up to four specific recipients of the tax information for the taxpayer. An option to affirmatively select the recipient prints on the consent form.

Specific uses of tax return information

Indicate up to four specific uses of the tax information for the taxpayer. An option to affirmatively select each use prints on the consent form.

Consent received from taxpayer

Mark this checkbox if the taxpayer returned the consent letter. This field is used in a data mining search.


303

Change of Address - Business8822B (2016)

Address Information

Foreign postal codeForeign province or countyForeign country code / description



*If different from Screen 1041

Form 8822‐B service center (Based on the old mailing address)

4 = New mailing address and new business location

3 = New business location

2 = Old mailing address

1 = New mailing address

Treat mailing address on Screen 1041 as:

Title of owner, officer or representative *Print fiduciary phone number on Form 8822‐B

New business location:

New mailing address:

Old mailing address:

SSN, ITIN or EINName *Treat fiduciary name on Screen 1041 as new responsible party

New responsible party:

City, state, zip codeStreet address *

Street address *City, state, zip code

City, state, zip codeStreet address *

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304

Form [95D] - Change of Address - Business

Overview

Use this form to report a change of address.

Address Information

Treat mailing address on Form 1041 as

The code options instruct ExacTax/1041 how to treat the mailing address on Form 1041. Enter one of the options listed in the table or select an option from the fieldview.

Code Result

1 New mailing address. Use this option if the mailing address on Form 1041 is the new mailing address. Complete the fields for the old mailing address on this form and leave the fields for new mailing address blank.

2 Old mailing address. Use this option if the mailing address on Form 1041 is the old mailing address. Complete the fields for the new mailing address on this form and leave the fields for the old mailing address blank.

3 New business location. Use this option if the mailing address on Form 1041 is the new business location. Leave the fields for the new business location on this form blank.

4 New mailing address and new business location. Use this option if the mailing address on Form 1041 is both the new mailing address and the new business location. Complete the fields for the old mailing address on this form and leave the fields for the new mailing address and the new business location blank

Form 8822-B service center

ExacTax/1041 automatically determines the appropriate service center where Form 8822-B should be mailed. This determination is based on the state postal code from the old mailing address entered on this form or on Form 1041.

If you do not enter a postal code on Form 1041 or on Form 8822B, or if a service center is not entered in this field, ExacTax/1041 does not print a service center address in the Form 8822-B filing instructions.

Old mailing address

Complete these fields if you entered the new mailing address on Form 1041. If the old mailing address is entered on Form 1041, leave these fields blank.

New mailing address

Complete these fields if you entered the old mailing address on Form 1041. If the new mailing address is entered on Form 1041, leave these fields blank.

New business location

Complete these fields to report a new business location if the location is different from the mailing address on Form 1041. If your business location changed and the new mailing address is entered on Form 1041, leave these fields blank.

New responsible party: Treat fiduciary name on form 1041 as new responsible party

Enter X if the fiduciary name and identification number on Form 1041 is to be used as the new responsible party.


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New responsible party: Name and EIN

Enter the name and identification number of the new responsible party if the name and number differ from the information on Form 1041.

Title of owner, officer or representative

Enter the title of the owner, officer, or representative of the person who signs the form. If you leave this field blank, ExacTax/1041 defaults to the Fiduciary title field on Form 1041.


306

Report of Foreign Bank Accounts114 (2016)

FinCEN Form 114 - General Information

FinCEN Form 114 - Amended or Late

Amended or late filed formExplanation for late filed form (For late code Z, Other)

Complete Parts II and III if more than 25 foreign accounts

Number of foreign accounts if 25 or more (Parts II and III are not completed if 25 or more accounts)

If not US, filer's country code / description

Title of filer

Use Screen OthInfo to answer Form 1041, Page 2, Other Information, Question 3

FinCEN Form 114a signature status(Links to Utilities > Electronic Filing Status)FinCEN Form 114 has already been filedAccount owner is filing FinCEN Form 114 (Suppress creation of the e‐file)

If amending or late filing FinCEN Form 114, select the appropriate code and enter an explanation in the statement below

BSA identifier (Confirmation number required to amend a previously electronically filed form)

Mexico state code / description (Use only when screen Screen 1041 address is in Mexico)

Signature date (Mandatory)

Other documentation (specify)

Foreign country code / descriptionIdentification number

Foreign identification:

Number of accounts filer has signature authority over, if 25 or more (Force) (Part IV)

Extended (For filing instructions)

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307

Form [95F] - Report of Foreign Bank Accounts

Overview

Use this form to enter information for the original and amended versions of Forms 114 and 114a.

FinCen Form 114 - General Information

Use this section to complete the original or amended version of Forms 114 and 114a.

Number of foreign accounts if 25 or more

ExacTax automatically counts the number of Forms 114 with code 1 or code 2 in the Information on financial account field to determine the number of accounts in which the partnership holds a financial interest. Enter a number in this field to force the number that ExacTax calculates or if there are 25 or more accounts and you did not enter the account information in Form 114-2. If there are 25 or more accounts, ExacTax marks Yes for Form 114, Part I, line 14 and enters the total number of accounts.

Note: If the number of foreign accounts is 25 or more, ExacTax does not complete Form 114, Part II and Part III. Enter X in the Complete Parts II and III if more than 25 foreign accounts field to complete Form 114, Part II and Part III even when not required.

Complete Parts II and III if more than 25 foreign accounts

ExacTax does not complete Form 114, Part II or Part III when the filer has a financial interest in 25 or more foreign accounts. Enter X in this field to complete Form 114, Part II and Part III when not required.

FinCEN Form 114a e-file authorization has already been signed and returned

Mark this field if the Form 114a electronic file authorization has already been signed and returned.

FinCEN Form 114 has already been filed

Mark this field if Form 114 has already been electronically filed.

Explanation for late filed form

Use the field to enter the reason for the late filed return. ExacTax prepares and prints the amended Form 114.

BSA identifier

This confirmation number is required when you amend form 114.


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Report of Foreign Bank Accounts, Page 2114-2 (2016)

Financial Account Information

Joint Accounts or No Interest

Filer's title with this owner

Principal joint owner or account owner:Taxpayer identification number

Number of joint owners for this account

City, state, zip codeMailing address

Information on financial accounts (2 = Part II, Owned separately, 3 = Part III, Owned jointly, 4 = Part IV, Authority but no financial interest)

Foreign country code / description


City, state, zip codeAddressMiddle initial

Last name or organization name


Financial institution where account is held:Account number or other designation

Maximum value of account

Other type (specify)Type of Account (1 = Bank, 2 = Securities, 3 = Other)

Mexico state code / description (use only when Screen 1041 fiduciary address is in Mexico)

Mexico state code / description (use only when Screen 1041 fiduciary address is in Mexico)

Foreign postal code

Foreign postal code

Name

First name

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309

Form [95G] - Report of Foreign Bank Accounts, Page 2

Overview

Use this form to complete the original and amended Form114, Pages 1 and 2, Part II; Page 3; and Page 4. This is a multiple-unit input form.

Financial Account Information

Use this section to enter financial account information for the original filing of Form 114. Use a separate form for each foreign account.

Information on financial accounts

Enter 1 for Owned separately, 2 for Owned jointly, or 3 for No financial interest. When the filer has a financial interest in 25 or more foreign accounts, Part II or III are not required. Mark the checkbox on Form 114 to complete Part II or III when there are more than 25 accounts.

Maximum value of account

Enter the maximum value of the account during the calendar year. If this field is blank, ExacTax prints "value unknown" on Form 114. ExacTax does not complete Form 114 if the maximum value of all accounts is known and the value is less than or equal to $10,000.

Type of Account

Enter 1 for Bank, 2 for Securities, or 3 for Other. If you enter 3, enter the description in the Other (specify) field.

Other type (specify)

If you entered 3 in the Type of Account field, enter the description of the other type of foreign account.

Joint Accounts or No Interest

Use this section to enter financial account information for the filing of Form 114. Use a separate form for each foreign account.

Number of joint owners for this account

If you entered 2 in the Information on financial accounts field, enter the number of joint owners of the foreign account. ExacTax uses this information to complete Form 114, Page 3, Part III, line 24.

Filer’s title with this owner

If you entered 3 in the Information on financial accounts field, enter the filer’s title with this foreign account. ExacTax uses this information to complete Form 114, Page 4, Part IV, line 43.


310

Small Employer Health Insurance Premiums8941 (2016)

Form 8941 Credit

Employee and insurance coverage informationTotal number of full‐time equivalent employeesTotal wages paid by employer (Amount will automatically be rounded to the next lowest $1000)

Total health insurance premiums paid by employerState tax credit or premium subsidies paid for health insurance premiumsTotal number of employees for whom insurance premiums were paidTotal number of full‐time equivalent employees (Based on number of employees for whom insurance premiums were paid)

Credit from cooperatives

EIN used to report employment taxes (if different than EIN entered on Screen 1041)Qualify for an exception to the SHOP Marketplace requirement (Certain employers in IA, WA and WI ‐ see Form 8941 instructions)

Marketplace identifier (If premiums paid through a SHOP Marketplace)

Credit claimed in tax year 2014 (1 = Yes, 2 = No)

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311

Form [95I] - Small Employer Health Insurance Premiums (1041)

Overview

Use this form to enter information for Form 8941, Credit for Small Employer Health Insurance Premiums.

Form 8941 Credit

Credit claimed in tax year 2014

Per the form instructions, the small employer health insurance premiums credit may only be claimed for two years. ExacTax/1041 can determine if the credit was claimed in 2015. Enter 1 for Yes or 2 for No if the credit was claimed in 2014. If this field is blank or a code of 1 was entered and Form 8941 was filed in 2015, the credit will not calculate in 2016.

Employee and insurance coverage information

Use this field to enter information regarding the number of employees for which the employer has paid health insurance premiums.

Insurance Type: Enter a code to designate the type of insurance coverage, or leave this field blank if the employees have no insurance coverage

State: Enter the state in this column where the employees work.

County Business is Located: Select the county from the fieldview based on the postal code entered in the State field.

Total # of Employees: Enter the number of employees.

% Paid by Employer: Enter the percentage of health insurance that was paid by the employer on behalf of the employees.

Average Premiums for State: ExacTax completes this column when a state has been selected, and the Insurance Type is 1 or 2. This figure represents the average premiums of the state small group market. ExacTax uses the amount in this field to calculate Form 8941, line 5. There are separate rates for employee-only coverage and family coverage. See Internal Revenue Ruling 2010-13 for more information.

Average premiums (Force): ExacTax completes the average premiums for state small group market. Use this field to change the calculated amount.

Total: ExacTax calculates the total average premiums for state small group market for the total number of employees.

Total wages paid by employer

Enter the total wages paid by the employer. ExacTax calculates the average annual wages paid by dividing the total wages paid by the employer by the total number of full-time equivalent employees. ExacTax prints this amount on Form 8941, line 3.

Total number of full-time equivalent employees

Enter the number of full-time equivalent employees based on the number of employees for whom insurance premiums were paid. ExacTax prints this amount on Form 8941, line 14.

Note: This number may be different than the number of full-time equivalent employees reported on Form 8941, line 2.


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General Business Credit CarryoverCO-GBC (2016)

Carryover Information

20152014

20112010200920082007200620052004200320022001

20132012

Credit carryover applies to (Each credit carryover must be entered on a separate unit)

1997199819992000

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313

Form [95J] - General Business Credit Carryover

Overview

Use this form to enter general business credit carryovers.

Carryover Information

Year carryovers

If ExacTax/1041 was used in the prior year, this information proformas automatically. Otherwise, if any of the general business credits from a prior year were carried back to an earlier year, enter only the amount available for carryforward. Enter carryforwards already used as negative amounts for the year in which the loss was used. For example, if a general business credit of $1,000 was generated in 2011, $300 of the credit was carried back to prior years and $500 of the remaining amount was used in 2012, enter 700 ($1,000 minus $300) in the 2011 field and enter -500 in the 2012 field.


314

Tax Projection WorksheetTPW (2016)

Income

Deductions

Next year items that will not default to current year are marked with an asterisk (*)

Ordinary dividendsInterest income

Qualified dividends

Short‐term capital gain or (loss) *Long‐term capital gain or (loss) *

28% rate gain *Unrecaptured section 1250 gain *

Schedule E income or (loss)

Schedule C income or (loss)

Schedule F income or (loss)Ordinary gain or (loss) *Other income

InterestTaxesFiduciary feesCharitable deductionAttorney and accountantOther deductions, not 2%

Miscellaneous deductions

Included in income distribution deduction:

Estate tax deduction *Exemption

Other ESBT

ESBTOther

Print Tax Projection Worksheet

Qualified dividends *Short‐term capital gains *Long‐term capital gains *

Income distribution deduction *

Included in other deductions:Administrative deductions

Net operating loss

Included in long‐term capital gain or (loss):


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Form [95K] - Tax Projection Worksheet

Overview

Use this form to enter information you expect to be different for the return next year. ExacTax uses this data to create the Tax Projection Worksheet based on current tax law and next year’s tax law differences. Enter only the items that you expect to be different for the coming tax year. If you do not expect any of the amounts to be different for the coming tax year, the current-year amounts automatically transfer to the next year.

Notes

Items marked with an asterisk (*) do not automatically transfer to the next year column of the worksheet.

If the return is an ESBT with non-S Corporation income, enter amounts for the S Corporation part of the trust in the Electing Small Business Trust (ESBT) fields and enter amounts for the remainder of the trust in the Other fields. All other types of trusts and estates should use only the Other fields.

Income

Print Tax Projection Worksheet

ExacTax automatically prints the worksheet if there is any information entered on this form. Enter X to print the worksheet without entering income, deductions, taxes, or payments.

Qualified dividends

Enter the amount of qualified dividends that are eligible for a lower tax rate than other ordinary income. To calculate the Tax Project Worksheet tax, the amount of qualified dividends must also be included in the Ordinary dividends field.

Long-term capital gain or (loss)

Enter the total long-term capital gain or loss the client expects for the next year. ExacTax uses this information to calculate any net capital gain to be taxed using the maximum capital gain rates. The amount you enter should include the net 28-percent capital gain or loss and the unrecaptured section 1250 gain.


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Tax Projection Worksheet, Page 2TPW-2 (2016)

Taxes and PaymentsNext year items that will not default to current year are marked with an asterisk (*)

Charitable deduction *Expenses allocable to investment income *Modifications to income *

Net investment income tax (Form 8960):

Other payments *Tax withheldEstimated tax payments (Force) *Other credits

Other taxes *Foreign tax creditAlternative minimum tax *Tax (Force) *

Distributions to beneficiaries *

Not subject to tax

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Form [95L] - Tax Projection Worksheet, Page 2

Overview

Use this form to enter information you expect to be different for the return next year. ExacTax uses this data to create the Tax Projection Worksheet based on current tax law and next year’s tax law differences. Enter only the items that you expect to be different for the coming tax year. If you do not expect any of the amounts to be different for the coming tax year, the current-year amounts automatically transfer to the next year.

Note: Items marked with an asterisk (*) do not automatically transfer to the next year column of the worksheet.

Taxes and Payments

Tax (Force)

ExacTax automatically calculates the 2014 tax using the 2014 tax rate schedules, including the tax on capital gains. Use this field to override the calculated amount.

Estimated tax payments (Force)

ExacTax uses the estimates calculated for 2014 instead of the current-year estimated tax amounts. Use this field to override the calculated amount.


318

Application to Adopt, Change or Retain Tax Year1128 (2016)

General Information

Automatic Approval Request

Ruling Request

Name of applicantApplicant's identifying numberContact person name, if not fiduciaryContact person telephone numberContact person fax numberApproval is requested to (A = Adopt, C = Change, R = Retain)

Date requested for tax year endDate the present tax year ends (If changing a tax year)First return or short period return will be filed for: (If changing or adopting)

Tax year beginningTax year ending

Explanation because present tax year differs from current financial reporting yearMethod of accounting (1 = Cash, 2 = Accrual, 3 = Other)Other method of accountingNature of the applicant's business or principal source of income

Revenue procedure under which request is filedRequesting a change and is not precluded from automatic approval rules? (1 = Yes, 2 = No)Requesting to change to its required tax year? (1 = Yes, 2 = No)

Information if under examination before an appeals office or a Federal court Changed annual accounting period within the past 48 months? (1 = Yes, 2 = No)Explanation for not attaching a copy of the letter rulingInformation if application has been withdrawn, not perfected, denied, or not implementedLegal basis supporting business purposeBasis of business purpose for natural business year test (A = Annual, S = Seasonal, P = 25% gross receipts)Gross receipts detail supporting the natural business year test

Immediately preceding the year of change:Short period1st preceding year2nd preceding year3rd preceding year

Amount of deferral resulting from changeInformation if a US shareholder in a CFCExplanation if CFC is not concurrently changing its tax yearInformation if a US shareholder in a PFICElecting to treat the PFIC as a qualified electing fund under section 1295? (1 = Yes, 2 = No)Information if member of a partnership, trust, estate, S corporation, IC‐DISC, or FSCPartnership will concurrently change its tax year to conform? (1 = Yes, 2 = No)Form 1128 has been filed for such partnership? (1 = Yes, 2 = No)

Adjusted Total Income Distribution Deduction

Explanation of request(s) currently pending with the IRS National OfficeForm 2848, Power of Attorney and Declaration of Representative, attached? (1 = Yes, 2 = No)Conference of right is requested if the IRS proposes to disapprove the application? (1 = Yes, 2 = No)User fee attached to this application

Extended due date, if extended (For filing instructions)

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Form [95M] - Application to Adopt, Change or Retain Tax Year

Overview

Use this form to adopt or retain a tax year.

Ruling Request

User fee attached to this application

Enter the amount of user fee attached to this application. The user fees are published in Rev. Proc. 2007-1 or in an annual update. The annual updates are published as revenue procedures in the Internal Revenue Bulletin, which you can access at irs.gov.


320

Statement of Specified Foreign Financial Assets8938 (2016)

General Information

Tax Items Attributable to Assets

Excepted Foreign Financial Assets

Foreign deposit and custodial accounts:InterestDividendsRoyaltiesOther incomeGains or (losses)DeductionsCredits

Other foreign assets:InterestDividendsRoyaltiesOther incomeGains or (losses)DeductionsCredits

Specified foreign financial assets reported on: (indicate the number of forms filed)

Form 3520Form 3520‐AForm 5471Form 8621Form 8865

Amount Form / Line Schedule / Line

Specified person(s) who are current beneficiaries of the trust

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Form [96A] - Statement of Specified Foreign Financial Assets

Overview

Use this form to enter information to complete Form 8938, Statement of Specified Foreign Financial Assets, Part III and Part IV.

General Information

Specified person(s) who are current beneficiaries of the trust

Select the beneficiaries that you want to print on Form 8938, Line 4. If only one name is selected, the beneficiary name and tax identification number prints on the form. If more than one beneficiary is selected, the information prints in a statement with the return.

Tax Items Attributable to Assets

Foreign deposit and custodial accounts

Leave these fields blank if Part V, line 3d is marked for all accounts reported on Form 8938, which indicates that no tax items are attributable to any of the Part V accounts. If tax items (income, gain or loss, deductions, or credits) are attributable to accounts reported in Part V, then sum all foreign deposit and custodial accounts reported on Form 8938, Part V, and enter the totals for each applicable tax item in the corresponding amount field. Enter the schedule, form, or return and the line number on which the amount was reported.

Other foreign assets

Leave these fields blank if Part VI, line 3d is marked for all assets reported on Form 8938, which indicates that no tax items are attributable to any of the Part VI assets. If tax items (income, gain or loss, deductions, or credits) are attributable to assets reported in Part VI, then sum all foreign assets reported on Form 8938, Part VI, and enter the totals for each applicable tax item in the corresponding amount field. Enter the schedule, form, or return and the line number on which the amount was reported.

Excepted Foreign Financial Assets

Specified foreign financial assets reported on

If specified foreign financial assets were reported on one of these forms, indicate the number of forms filed. ExacTax/1041 marks the applicable boxes on Form 8938, Page 1, Part IV when any of these fields contain a number.

Note: You may not need to include the assets reported on these forms on Form 8938. See the Form 8938 IRS instructions for details.


322

Statement of Specified Foreign Financial Assets, Page 28938-2 (2016)

Foreign Deposit and Custodial Accounts

Other Foreign Assets

Type of account (D = Deposit, C = Custodial)Account number or other designationAccount opened during the tax yearAccount closed during the tax yearNo tax item reported in Part III with respect to this accountMaximum value of the account during the tax yearForeign currency exchange rate used, if any:

Foreign currency in which account is maintainedExchange rate used to convert to US dollars (xxxxxxx.xxxx)Exchange rate source (if not US Treasury Financial Management Service)

Financial institution where account is maintained:

NameAddress

Description of assetAsset identifying number or other designationDate asset acquired (if during the tax year)

Date asset disposed (if during the tax year)

No tax item reported in Part III with respect to this assetMaximum value of the asset during the tax yearForeign currency exchange rate used, if any:

Foreign currency in which asset is denominatedExchange rate used to convert to US dollars (xxxxxxx.xxxx)Exchange rate source (if not US Treasury Financial Management Service)

Stock or interest in a foreign entity:Type of entity (P = Partnership, C = Corporation, T = Trust, E = Estate)

NameAddressCity, state, zip code

Issuer or counterparty information

Foreign country code / descriptionCity, state, zip code


Foreign postal codeForeign province or county

Global intermediary identification number

Global intermediary identification number

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Form [96B] - Statement of Specified Foreign Financial Assets, Page 2

Overview

Use this form to enter information to complete Form 8938, Statement of Specified Foreign Financial Assets, Part V and Part VI.

Foreign Deposit and Custodial Accounts

Account number or other designation

Enter the account number of the account. If there is no account number, enter other specific identifying information. If more than one account exists, add as many units of Form 8938-2 as necessary to enter additional accounts and the related account information. Additional accounts print on additional units of Form 8938, Page 3, and ExacTax marks "If you have continuation statements, check here" at the top of Form 8938, Page 1.

Account closed during the tax year

Enter X if the account was closed during the year. If this field is marked for the account, ExacTax will not proforma this information next year.

Maximum value of the account during the tax year

This field is mandatory for each account. You must include the maximum value of the entire account for which an interest is held.

Other Foreign Assets

Description of asset

Enter the foreign financial asset description. For stocks or securities, include the class or issue of the stocks or securities. If more than one asset exists, add as many units of Form 8938-2 as necessary to enter additional assets and the related asset information. Additional assets print on Form 8938, Page 3, and ExacTax marks "If you have attached continuation statements, check here" at the top of Form 8938, Page 1.

Note: You may not have to report specified foreign financial assets on Form 8938 if the assets were reported on Form 3520, 3520-A, 5471, 8621, 8865, or 8891. If you do not have to do so, skip this data entry section and complete the Excepted Foreign Financial Assets section on Form 8938. See the Form 8938 IRS instructions for details.

Date asset disposed

Enter a date if the asset was disposed during the year. If a date is entered in this field, ExacTax will not proforma this information next year.

Maximum value of the asset during the tax year

This field is mandatory for each asset. You must include the maximum value of the entire asset for which an interest is held.

Issuer or counterparty information

If the asset is not stock of a foreign entity or an interest in a foreign entity, enter the applicable issuer or counterparty information in this field. Otherwise, if the asset is stock of a foreign entity or an interest in a foreign entity, enter the foreign entity type, name, and address in the Stock or interest in a foreign entity fields.


324

Reportable Transaction Disclosure Statement8886 (2016)

Reportable Transaction Information

Published guidance numberTransaction of interest

Description of expected tax treatment and expected tax benefit

Other

Absence of adjustments to basisDeferral

Tax credits

Adjustments to basisNonrecognition of gainExclusions from gross incomeOrdinary lossCapital lossDeductions

Type of tax benefit or consequence:

Participated through another entity

Name of reportable transactionUnit


Promoters or soliciting parties to whom fees were paid with regard to the transaction

LossContractual protectionConfidentialListed

Type of reportable transaction:Reportable transaction or tax shelter registration number (If applicable)

Enter each reportable transaction on a separate Screen 8886

Initial year participated in transactionProtective disclosureInitial year filer (Separate filing of transaction required)

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Form [96C] - Reportable Transaction Disclosure Statement

Overview

Use this form to enter information to complete Form 8886. Enter each reportable transaction in a separate form.

Reportable Transaction Information

Use this section to enter information for Form 8886, Page 1.

Name of reportable transaction

Enter the name, if any, by which the transaction is known or commonly referred to. If no name exists, enter a short identifying description of the transaction that distinguishes it from other reportable transactions.

Note: This is a mandatory entry to calculate and print Form 8886.

Initial year filer

Enter X to indicate this transaction is being reported for the first time to the IRS. If this field is marked, Form 8886 is required to be filed separately, and the Form 8886 filing instructions and tax authority slipsheet will print.

Published guidance number

Enter the published guidance number if the transaction is a "listed transaction", "transaction of interest", or substantially similar and identify the notice, revenue ruling, or regulation that identified the transaction.

Participated through another entity

In the field, enter the name, type of entity, and EIN of the entity if the transaction was invested through another entity.

Promoters or soliciting parties

In the field, enter each individual’s name and address, to whom a fee was paid with regard to the transaction if that person promoted, solicited, or recommended participation in the transaction, or provided tax advice related to the transaction.

Description of expected tax treatment...

In the field, describe the amount and nature of the expected tax treatment and benefits generated by the transaction for all affected years.


326

Reportable Transaction - Entities Involved in Transaction8886-2 (2016)

Entity Involved in Transaction



Identifying number

City, state, zip codeAddressName

Type of entity (1 = Tax‐exempt, 2 = Foreign, 3 = Related)

Description of involvement

Name of reportable transactionUnit

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Form [96D] - Reportable Transaction - Entities Involved in Transaction Overview

Use this form to enter information to complete Form 8886, Page 2. Enter each entity involved in the reportable transaction in a separate Form 8886-2.

Entity Involved in Transaction

Use this section to complete Form 8886, Page 2, line 8.

Unit

Select the reportable transaction that the entity was involved in from the fieldview. Each entity involved in the reportable transaction should be entered on a separate unit of Form 8886-2.

Name of reportable transaction

ExacTax/1041 automatically updates the name of the reportable transaction once a unit has been selected. The name of the reportable transaction in this form must match one of the reportable transactions entered in Form 8886.


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Disclosure Statements8275 (2016)

General Information

Parts I & II

Form or ScheduleLine no.Amount




Form or ScheduleLine no.AmountAmount

Line no.Form or Schedule

Part II Detailed Explanation

Description of itemsItem or group of itemsReg., Rev. Rul., etc.

Line 6:Reg., Rev. Rul., etc.Item or group of itemsDescription of items


Line 5:

Reg., Rev. Rul., etc.Item or group of itemsDescription of items


Reg., Rev. Rul., etc.

Line 4:



Line 3:

Item or group of itemsDescription of items


Line 2:



Line 1:

Delete on proforma for next year

Foreign entity information:Type of disclosure statement (1 = Disclosure statement; 2 = Regulation disclosure statement)

Information for pass‐through entity:

IRS Service CenterTax year beginning and ending

Identifying number

Foreign postal codeForeign province or stateForeign country code / descriptionCity, state, zip codeAddress

Name

Reference ID numberEmployer identification numberName of foreign entity

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Form [96E] - Disclosure Statements Overview

Use this form to complete Form 8275 or Form 8275-R. This is a multiple unit input form. Add additional units when more than six lines are needed or when a combination of Form 8275 and Form 8275-R are needed.

Note: In order to conform to IRS MeF specifications, ExacTax does not generate page 2 of Form 8275 and Form 8275-R. Instead, a statement is generated when necessary with additional detail.

General Information

Use this section to enter foreign entity and pass-through information, if applicable.

Type of disclosure statement

Enter 1 to complete Form 8275 or 2 to complete Form 8275-R. This field is mandatory.

Foreign entity information

Enter the name, EIN, and reference ID number, if applicable.

Information about pass-through entity

Enter the name, EIN, address information, tax year information, and IRS service center where the return was filed for pass-through entity, if applicable.

Parts I & II

Use this section to complete Parts I and II of the form.


Enter detailed explanation for Part II. If the explanation is too long to fit on the form, ExacTax will generate a statement.


330

Trust Accumulation of Charitable Amounts1041A (2016)

Form 1041-A - Charitable Distributions Information

Balance Sheet - Assets

Balance Sheet - Liabilities

Balance Sheet - Net Assets

Distributions of principal for charitable purposes:

Distributions of income for charitable purposes:

During current yearIn prior years

Accumulated income from current yearAccumulated income set aside in prior tax years

Charitable deduction itemized by purpose

Other assetsOther building and equipment accumulated depreciationOther land, buildings, equipment

OtherBuildings and equipment accumulated depreciationLand, buildings, equipmentCorporate bondsCorporate stockGovernment

Investments:Prepaid expensesInventoriesNotes receivable allowance for doubtful accountsNotes and loans receivableAccounts receivable allowance for doubtful accountsAccounts receivableSavings and temporary cash investmentsCash

Beginning of Year End of Year

Accounts payable and accrued expensesMortgages and other notes payableOther liabilities

Trust principal or corpusUndistributed income and profits



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Form [97] - Trust Accumulation of Charitable Amounts

Overview

Use this form to complete Form 1041-A.

Form 1041-A - Charitable Distributions Information

Use this section to complete Form 1041-A, Page 1, Parts II and III


Itemize the Form 1041-A, line 12 amount by charitable purpose, including payee's name and address.

Distributions of income for charitable purposes: Accumulated income set aside in prior tax years

If ExacTax/1041 was used in the prior year, this information proformas automatically. If necessary, enter the amount from the prior-year Form 1041-A, Part II.

Distributions of income for charitable purposes: Accumulated income from current year

Enter the Payee's Name and Address, Date, Charitable Purpose and Description of Assets, and Income Distributed in the current tax year in the field.

Distributions of principal for charitable purposes: In prior years

If ExacTax/1041 was used in the prior year, this information proformas automatically. If necessary, enter the amount from the prior-year Form 1041-A, Part III.

Distributions of principal for charitable purposes: During current year

Enter the Payee's Name and Address, Date, Charitable Purpose and Description of Assets, and Income Distributed in the current tax year in the field.

Balance Sheet - Assets

Enter amounts in this section to complete the asset portion of the balance sheet on Form 1041-A, Page 2. If ExacTax/1041 was used in the prior year, the information in the Beginning of the Year column proformas automatically. If necessary, enter the beginning-of-year amounts.

Balance Sheet - Liabilities

Enter amounts in this section to complete the liability portion of the balance sheet on Form 1041-A. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year column proformas automatically. If necessary, enter the beginning-of-year amounts.

Balance Sheet - Net Assets

Enter amounts to complete the trust principal or corpus and undistributed income fields on Form 1041-A. If ExacTax/1041 was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amounts.


332

Nonresident Alien Return1040NR (2016)

General Information

Income Not Effectively Connected

Capital Gains and Losses Not Effectively Connected

Office not in US (for return due date)Address outside US for refund checkAddress, continuedTransportation incomeUS Tax withheld:

Partnerships under section 1446 (Form 8805)Partnerships under section 1446 (Form 1042‐S)Dispositions of US real property interests (Form 8288‐A)Dispositions of US real property interests (Form 1042‐S)

Country of residence code / descriptionLatest US income tax return filed and yearMake a distribution or loan to a US person or receive a contribution from a US person (1 = Yes, 2 = No)

Information if claiming benefits of a US income tax treatySubject to foreign tax on income entitled to treaty benefits? (1 = Yes, 2 = No)Claiming treaty benefits pursuant to a Competent Authority determination? (1 = Yes, 2 = No)

Other tax rate 1 (xx.x)

Other tax rate 2 (xx.x)

US corporate dividendsForeign corporate dividendsMortgage interestInterest paid by foreign corporationsOther interestIndustrial royalties (patents, trademarks, etc.)Motion picture or TV copyright royaltiesOther royalties (copyrights, recording, publishing, etc.)Real property income and natural resources royaltiesPensions and annuitiesSocial security benefitsResidents of Canada:

Gambling winningsGambling lossesNet gambling income taxed at Other tax rate 1

Gambling winnings (residents of other countries) (losses not allowed)Other income

Sales or exchanges of capital assetsCapital gain tax rate

Schedule OI:

Income US Tax WH

Proceeds Cost/Basis

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Form [98] - Nonresident Alien Return

Overview

Use this form to enter information to complete Form 1040NR, U.S. Nonresident Alien Income Tax Return.

Notes

On Form 1041 in the Estate / Trust information section, enter X in the Prepare Form 1040 NR field for ExacTax to prepare Form 1040NR instead of Form 1041.

Use forms in the Income, Deductions, and activity folders to enter income and deductions for the return.

Enter beneficiary name, address, and allocation information in View > Beneficiary Information to prepare Schedule K-1 equivalents for the beneficiaries.

General Information

Use this section to enter general information that ExacTax uses when processing the nonresident alien return.

Office not in US

Enter X for ExacTax/1041 to use the 15th day of the sixth month instead of the 15th day of the fourth month after year end for the due date of the return.

Transportation income

Enter the U.S. source gross transportation income that is not effectively connected with a U.S. trade or business. ExacTax automatically calculates the four percent tax for Form 1040NR, Page 2.

Income Not Effectively Connected

Use this section to enter information reported on Form 1040NR, Page 4, Section NEC - Tax on income Not Effectively Connected With a U.S. Trade or Business. ExacTax only reports income amounts entered in this section on Page 4 of the return. ExacTax reports withholding amounts entered here in the 1040NR, Page 2, Payments section. Enter income amounts that are effectively connected with a U.S. trade or business in the applicable input forms. For example, enter dividend income from assets effectively connected with a U.S. trade or business on Form Income.

Other tax rate...

If any of the not effectively connected income is subject to a tax rate other than ten percent, 15 percent, or 30 percent, enter the other percentage in the field(s) provided.

Income, U.S. Tax WH

Income not effectively connected with a U.S. trade or business is generally taxed at 30 percent. ExacTax applies the 30 percent tax rate to income amounts entered directly in the input form instead of in the field. If the income is subject to a different rate due to a treaty or other reasons, enter the information in the applicable field. The fields within the field are described as follows.


334

Tax Rate: The tax rate codes available in the field are listed in the table that follows and in the fieldview.

Code Result

10.0 10%

15.0 15%

30.0 30%

Tax1 Other Tax Rate 1

Tax2 Other Tax Rate 2

Description: Enter the description of the income not effectively connected with a U.S. trade or business.

Taxable Amount: Enter the amount of income not effectively connected with a U.S. trade or business. This amount is reported in the applicable line and column on Page 4 of the return (Schedule NEC).

U.S. Federal WH: Enter the U.S. federal tax withheld on the income. The column total is reported on the applicable line of Form 1040NR, Page 2, along with other federal income tax withheld on income not effectively connected with a U.S. trade or business.

Capital Gains and Losses Not Effectively Connected

Use this section to enter information regarding gains or losses from the sale or exchange of capital assets not effectively connected with a U.S. trade or business. ExacTax reports these amounts on Form 1040NR, Page 4, lines 9, 16, 17, and 18.


335

Return of Foreign Trust with US Owner3520A (2016)

Form 3520-A General Information

US Agent Information

Trustee Information

Excepted specified foreign financial assets are reported on this formReference ID number

Appointed by foreign trust? (1 = Yes, 2 = No)Same as fiduciaryNameIdentification numberStreet addressCity or townState or provinceZIP or postal codeCountry code / descriptionAttach US agent authorization formAttaching copy of:

Summary of all agreements (1 = Yes, 2 = No, 3 = Attached previously)Trust instrument (1 = Yes, 2 = No, 3 = Attached previously)Memoranda or letters of wishes (1 = Yes, 2 = No, 3 = Attached previously)Subsequent variances to original trust documents (1 = Yes, 2 = No, 3 = Attached previously)Other trust documents (1 = Yes, 2 = No, 3 = Attached previously)

Country code / descriptionZIP or postal codeState or provinceCity or townStreet addressIdentification numberNameSame as fiduciary

Transfer of property to another person

Explanation of facts and law establishing foreign trust ownershipAgree that IRS or US beneficiary can inspect trust's records? (1 = Yes, 2 = No)Entity of foreign trust owner (1 = Individual, 2 = Partnership, 3 = Corporation)

Year Attached

Signature dateTitle

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336

Form [99A] - Return of Foreign Trust with US Owner

Overview

Use this form to enter information for Form 3520-A.

US Agent Information

US Agent: Appointed by foreign trust?

Enter 1 if the foreign trust has entered into a binding contract with a U.S. person that allows them to act as the trust's authorized U.S. agent. Information on the U.S. agent must be entered in the name and address fields if different than the fiduciary.

Enter 2 if no such agreement has been established by the time Form 3520-A is being filed. Complete the following fields as required.

Summary of all agreements

Trust instrument

Memoranda or letters of wishes

Subsequent variances to original trust documents

Other trust documents

US Agent: Attach US agent authorization form

Enter X to print the Authorization of Agent with the form. In order to authorize a U.S. person to act as an agent, the trust and agent must enter into a binding agreement substantially in this format.


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Foreign Trust Balance Sheet3520A-2 (2016)

Foreign Trust Assets

Foreign Trust Liabilities and Net Worth

CashAccounts receivableMortgages and notes receivableInventoriesGovernment obligationsOther marketable securitiesOther nonmarketable securitiesDepreciable (depletable) assetsAccumulated depreciation (depletion)Real propertyOther assets

Accounts payableContributions, gifts, grants payableMortgages and notes payableOther liabilitiesContributions to trust corpusAccumulated trust incomeOther



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Form [99B] - Foreign Trust Balance Sheet

Overview

Use this form to enter balance sheet information for Form 3520-A.

Foreign Trust Assets

Enter amounts in this section to complete the asset portion of the balance sheet on Form 3520-A, Page 2.

Foreign Trust Liabilities and Net Worth

Enter amounts in this section to complete the liability and net worth portions of the balance sheet on Form 3520-A, Page 2.


339

Transactions with Foreign Trusts, Receipt of Foreign Gifts3520 (2016)


Initial returnInitial return (extension filed)Final returnAmended returnExcepted specified foreign financial assets are reported on this formReason(s) for filing:

Transferred money or other property to a foreign trust or reported a qualified obligationOwner of all or any portion of a foreign trustReceived a distribution, loan, or uncompensated use of property from a foreign trustReceived certain gifts or bequests from a foreign person

Foreign trust:NameEmployer identification numberReference ID numberStreet addressCity or townState or provinceZIP or foreign postal codeCountry code / description

US Agent:Appointed by foreign trust? (1 ‐ Yes, 2 = No)Same as fiduciary

Attach US agent authorization form

NameIdentification numberStreet addressCity or townState or provinceZIP or postal codeCountry code / description

US Decedent:Name

Tax identification number of decedent

EIN of estate

Street addressCity or townState or provinceZIP or postal codeCountry code / description

Made transfer to a foreign trust by reason of deathTreated as owner of foreign trust immediately prior to deathAssets of foreign trust were included in estate

Transaction descriptionUnit

Date of death

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Form [99C] - Transactions with Foreign Trusts, Receipt of Foreign Gifts

Overview

Use this form to enter information about transactions with foreign trusts.


Use this section to enter information about the trust and U.S. agent.

Reason(s) for filing: Transferred money or other property

Enter X to complete Form 3520, Part I.

Reason(s) for filing: Owner of all or any portion

Enter X to complete Form 3520, Part II.

Reason(s) for filing: Received a distribution

Enter X to complete Form 3520, Part III.

Reason(s) for filing: Received certain gifts or bequests

Enter X to complete Form 3520, Part IV.



Enter 2 if no such agreement has been established by the time Form 3520 is being filed. Complete the following fields, as required.

Beneficiaries

Other persons with trust powers


Trust instrument



Trustees




341

Form 3520-2 - Foreign Trust Transfers and Obligations

Use this form to enter information for Form 3520, Pages 2 and 3.

Form 3520-3 - Foreign Trust Distributions and Gifts

Use this form to enter information for Form 3520, Pages 4, 5, and 6.


342

Foreign Trust Transfers and Obligations3520-2 (2016)

Part I - Transfers to a Foreign Trust

Schedule A - Obligations of a Related Trust

Schedule B - Gratuitous Transfers

Schedule C - Qualified Obligations

Unit

Transaction description

Trust creator:Name

Street addressCity or townState or provinceZip or postal codeCountry code / descriptionID number

Date trust was created

Country where trust was created code / descriptionCountry whose law governs trust code / description

Foreign trust owners informationTransfer a completed gift or bequest? (1 = Yes, 2 = No)Any part of income or corpus of trust benefit any US beneficiary? (1 = Yes, 2 = No)Could trust be revised or amended to benefit a US beneficiary? (1 = Yes, 2 = No)Filer continue to be treated as owner of transferred asset(s) after transfer? (1 = Yes, 2 = No)

Transfer property to related foreign trust in exchange for obligation of the trust? (1 = Yes, 2 = No)Qualified obligations informationAgree to extend assessment period to 3 years after maturity date of qualified obligation? (1 = Yes, 2 = No)

Transfers to trust were less than FMV or no consideration received

Attaching copy of:Sale document (1 = Yes, 2 = No, 3 = Attached previously)Loan document (1 = Yes, 2 = No, 3 = Attached previously)Subsequent variances to original sale or loan documents (1 = Yes, 2 = No, 3 = Attached previously)

If no US agent was appointed:Beneficiary informationTrustee informationOther persons with trust powers

Attaching copy of:Summary of all agreements (1 = Yes, 2 = No, 3 = Attached previously)Trust instrument (1 = Yes, 2 = No, 3 = Attached previously)Memoranda or letters of wishes (1 = Yes, 2 = No, 3 = Attached previously)Subsequent variances to original trust documents (1 = Yes, 2 = No, 3 = Attached previously)Trust financial statements (1 = Yes, 2 = No, 3 = Attached previously)Other trust documents (1 = Yes, 2 = No, 3 = Attached previously)

Year Attached

Year Attached

Qualified obligations outstanding of related foreign trust held in current tax yearDescription of any changes in terms of qualified obligation

Name, continued

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Form [99D] - Foreign Trust Transfers and Obligations

Overview

Use this form to enter information about transactions with foreign trusts.














Beneficiaries



Trust instrument



Trustees




344

Foreign Trust Distributions and Gifts3520-3 (2016)

Part II - US Owner of a Foreign Trust

Part III - Distributions

Part III - Schedules A, B, and C

Part IV

Transaction descriptionUnit

Foreign trust owners informationCountry where trust was created code / descriptionCountry whose law governs trust code / descriptionDate trust was createdDid foreign trust file Form 3520‐A? (1 = Yes, 2 = No)Gross value of portion of foreign trust treated as owning

Cash or FMV of property received from foreign trustLoans from related foreign trustAgree to extend assessment period to 3 years after maturity date of qualified obligation? (1 = Yes, 2 = No)Qualified obligations outstanding held by foreign trust in current tax yearDescription of any changes in terms of qualified obligationForeign Grantor Trust Beneficiary Statement received? (1 = Yes, 2 = No, 3 = N/A)Foreign Nongrantor Trust Beneficiary Statement received? (1 = Yes, 2 = No, 3 = N/A)

Use actual calculation of trust distributions? (1 = Yes, 2 = No)Schedule A ‐ Default calculation:

Number of years the trust has been a foreign trustExplanation of basis for number of years trust has been a foreign trustTotal distributions received from foreign trust during 3 preceding tax years

Schedule B ‐ Actual calculation of trust distributions:

Schedule C ‐ Calculation of interest charge:Tax on total accumulation distribution from Form 4970Combined interest rate imposed on total accumulation distribution (Force)

Gifts or bequests received from nonresident alien or foreign estate in excess of $5000 (If more than $100,000 total received)

Gifts received from foreign corporation or foreign partnership (If more than $15,601 total received)

Foreign donor acting as nominee or intermediary for any other person

Ordinary incomeQualified dividendsAccumulated distributionTax‐exempt portion of accumulated distributionNet short‐term capital gainNet long‐term capital gain28% rate gainUnrecaptured section 1250 gainTrust corpusOther description / amountAggregate undistributed net incomeWeighted undistributed net income

1

2

3

4 5

6 7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31 32

33

34

35

36

37

38

39

3520-3 99E

2016 FIDUCIARY1/23/2017 8:18:07 AM


345

Form [99E] - Foreign Trust Distributions and Gifts

Overview

Use this form to enter information for Form 3520, Pages 4, 5, and 6.














Beneficiaries



Trust instrument



Trustees




346

Amount

Other Information

CA General Information

6FCAGEN 01 11/03/16

CAGen

FIDUCIARY

Decedent a nonresident of California

#Paid on original return . . . . . . . . . . . . . . . . . . . . . . . . . . [§ 30]

Amount [30]

General footnote Sch. K-1/Grantor Report [§ 12]

General footnote [§ 11]

Decedent’s spouse:

Refund shown on original return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Social security number . . . . . . . . . . . . . .

First name . . . . . . . . . . . . . . . . . . . . . . .

Fair market value of decedent's assets Within CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fair market value of decedent's assets Outside CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Date of court order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)

Amended return explanation (74)

Amended Return Information

[§ 29]

Overflow #

CA1

2016

ExacTax, Inc.

CA1

Code# Description (49)

[§ 13] Voluntary contributions

1 = Alzheimer’s Fund3 = Endangered Species5 = California Breast Cancer Fund6 = California Firefighters’ Memorial Fund7 = Emergency Food Fund8 = CA Peace Officers Foundation Fund10 = CA Sea Otter Fund13 = CA Cancer Research Fund

1922242530313233

= Child Victims of Human Trafficking Fund= School Supplies for Homeless Children Fund= Protect Our Coast & Oceans= Keep Arts in School Fund= State Childrens Trust Fund for the Prevention of Child Abuse= Prevention of Animal Homelessness and Creulty Fund= Revive the Salton Sea Fund.= California Domestic Violence Victims Fund.

Codes

Federal ID#Have beneficial interest in a trust orgrantor of another trust . . . . . . . . . . . [§ 26]

Trust Name (35)

Trustee changes. . . . . . . . . [§ 4]

Grantor or creator of trust:Name (35) . . . . . . . . . . . . . . . . . . . . . . . . [14]

Address (35) . . . . . . . . . . . . . . . . . . . . . . .

City (20), state and zip code . . . . . . . . . . .

FTB Serial Number (30)

Authorize FTB to discuss return with preparer (1 = Yes, 2 = No)

[7]

[33]Underpayment penalty on original return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[15]

[16]

[20]

[19]

[32]

[24][23]

[17] [18]

Estate or trust defferred income from the disposition of assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [27]

[6]

Bankruptcy estate - tax from Form 540 . . . .

Amended return (If different from federal). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = yes, 2 = No) [28]

[21]

[25]

Overpayment applied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [31]

Special processing [§ 9]

Fiduciary name & title (Force)[2]

Last name . [22]

#Explanation of changes. . . [§ 29]

Amended returnLine number Previous return Explanation

Disaster explanation (EF only) [§ 10]

Name of estate or trust (Force)[1]


347

Form [CA1] - California General, Other Information, Amended Return

Overview

Use this form to complete Forms 541, 541-ES, 3526, and 743 and to enter additional information for California forms.

General Information

ExacTax/1041-CA uses the information entered here to complete Forms 541, 541-ES, 743, and 3563.

Name of estate or trust (Force)

Enter the estate or trust name to print on the California forms. If this field is blank, ExacTax/1041-CA prints the Estate / trust name from federal Form 1041.

Fiduciary name and title (Force)

Enter the fiduciary name and title for Form 541-ES and Form 3563. If this field is blank, ExacTax/1041-CA prints the fiduciary name from federal Form 1041.

Fiduciary information

Fiduciary information transfers automatically from federal Form 1041. If the client is a trust, ExacTax/1041-CA completes Form 541, Schedule G and Schedule K-1, line E using the entry in the State field to determine the residency of the trustee(s). If the code is not CA and the trustee is a resident, enter 1 in the California Resident field. If the code is CA and the trustee is a nonresident, enter 2 in the California Resident field.

Trustee changes

If a trustee ceased to serve the trust during any portion of the taxable year, changed residence, or began serving the trust during the taxable year, enter the name of the particular trustee, the relevant dates, and a description of the event.

Authorize FTB to discuss return with preparer

Use this field if the state authorization to discuss is different from the federal. Enter 1 to indicate that the Franchise Tax Board is authorized to discuss the return with the preparer or 2 to indicate that it is not. If you leave this field blank, ExacTax/1041-CA assumes the authorization is the same as the federal.

Bankruptcy estate - tax from Form 540

Enter the amount of tax calculated on Form 540 for the bankruptcy estate. ExacTax/1041-CA assumes Form 540 has already been completed and Form 541 is prepared only as a transmittal for that return.

Online account view access authorization

Use this field to generate Form 743. Enter 1 to print the firm name and address in Form 743, Part 3. Enter 2 to print the preparer’s name and the firm address.

Special processing

Enter special processing information. The information prints at the top of Form 541, Page 1.


348

Disaster explanation

For electronically filed returns, enter an explanation to include in the electronic record to alert the California Franchise Tax Board that the return requires special handling due to a disaster. Information in this field does not print with a paper-filed return.

General footnote

Enter notes to add to Form 541. Do not use this dialog to attach notes to the Schedules K-1 or Grantor / Agency Report. These notes may be entered as additional information in View > Beneficiary Information > California tab or in the General footnote Schedule K-1 and Grantor / Agency Report field.

General footnote Schedule K-1 and Grantor / Agency Report

Enter information to appear on every beneficiary’s Schedule K-1 or Grantor / Agency Report in this field. If there is information for a specific beneficiary but not all beneficiaries, enter the information in the dialog attached to the specific beneficiary’s Additional Information field in View > Beneficiary Information > California tab.

Other Information

Use this section to complete the Other Information section of Form 541, Page 2.

Voluntary contributions

Enter any voluntary contributions to complete Form 541, Page 2, Voluntary Contributions.

Grantor or creator of trust: Name / … / City, state, zip code

Enter the name and address of the grantor or creator of the trust. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Decedent nonresident of California / … / Date of court order

Enter information about the decedent and spouse. If information is entered and the return is for a trust rather than an estate, the information is ignored. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Have beneficial interest in a trust or grantor of another trust

Enter the trust name(s) and federal identification number(s) if the trust has a beneficial interest in a trust or is a grantor of another trust. ExacTax/1041-CA uses the information to complete Form 541, Page 2, Other Information, question 8.

Amended Return Information

Use this section to enter amended return information.

Amended return

Use this field if the amended return status is different at the state from at the federal. Enter 1 to indicate the return is amended. Enter 2 to indicate the return is not amended. If you leave this field blank, ExacTax/1041-CA assumes the status is the same as the federal.

Explanation of changes


349

To default to the explanation entered on federal Form Amend, choose Setup > 1041 Fiduciary > Federal tab > Other Return Options > Default to federal amended return explanation of changes. Otherwise, use the field to enter an explanation for the amended return.

Original return information: Paid

If completing an amended return, enter the amount paid with the original return. This amount prints on Form 541, Page 1, line 30.

Original return information: Overpayment applied

If preparing an amended return, enter the amount of overpayment applied on the original return. This amount is included as a subtraction in the calculation of Form 541, Page 1, line 30.

Original return information: Refund shown

If completing an amended return, enter the amount of the refund on the original return. This amount is included as a subtraction in the calculation of Form 541, Page 1, line 30.

Original return information: Underpayment penalty

Enter the underpayment penalty paid with the original return. The amount entered in this field appears on Form 541, Page 2, line 42, and Form 5805 or 5805F, as applicable, does not calculate or print.


350

Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expense Attributable to Source Income

Schedule D-1 Additional Information

Sales PriceDescription (24)# CA Basis[§ 1] Capital gains/loss

Type† Date Acquired Date Sold

Adj Code††

CAIncome CA Capital Gains and Net Income

6FCAINC 01 11/03/16 FIDUCIARY

Section 280F Recapture:

Deduction taken in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deduction that would have been allowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use fields to override ExacTax calculated amounts as shown on CA Allocation of Expenses by Income Type Worksheet

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net Income

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rental real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ordinary business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA Source (Force)California Law (Force)

Use fields to override ExacTax calculated amounts as shown on CA Allocation of Expenses by Income Type Worksheet

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fiduciary fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Attorney and accountant fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other deductions not subject to 2% floor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA Source (Force)California Law (Force)

Miscellaneous deductions subject to 2% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow #

CA2

2016

ExacTax, Inc.

CA2

ADJ to Gain/Loss

Sales PriceDescription (24)# CA BasisType† Date Acquired Date Sold

[25][24][23][22]

[10]

[31][30][29][28]

[27][26]

[17][16][15][14][13][12]

Short-term capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [19]

[18]

[21][20]

ADJ to Gain/Loss

PostalCode

PostalCode

Adj Code††

†† Adj Codes:N = Received 1099-B or 1099-S as a nominee for actual ownerD = Accrued market discount in boxc 1gQ = Sold or exchanged qualified small business stockX = Excluded gain or DC Zone assets or qualified community assetsR = Postponed gain (QSB rollover, empowerment zone, etc.)W = Nondeductible loss from a wash saleL = Nondeductible loss other than wash saleE = Selling expenses or option premiums not on 1099-B or 1099-SM = Multiple transactions reported on a single rowO = Adjustment not explained with any other code

EW = Code E (Selling expenses) and W (Nondeductible loss from wash saleMN = Code M and N (Received 1099 as nominee for actual owner)MD = Code M and D (Accrued market discount)MX = Code M and X (Excluded gain DC Zone/Qualified community assets)MR = Code M and R (Postponed gain on rollover (QSB, Public traded, etc.))MW = Code M and W (Nondeductible loss from wash sale)ML = Code M and L (Nondeductible loss other than wash sale)ME = Code M and E (Sell expenses/Option premium not on 1099)MO = Code M and O (Adjustment not explained with any other code)

† Type:B = BusinessC = CollectiblesM = Money MarketN = Non-businessV = 1202 gain 100% excludableX = 1202 gain 50% excludableY = 1202 gain 75% excludableZ = 1202 gain 60% excludable

[11]

[37][36][35][34]

[33][32]

[39][38]

Short-term . . . . . . . . .Long-term . . . . . . . . .

ESBT CA SourceESBT CA Law

[8][9]

[6][7]

Other CA SourceOther CA Law

[4][5]

[2][3]

Alternative minimumtax adjustment


351

Form [CA2] - California Capital Gains and Net Income

Overview

Use this form to complete Form 541, Page 1, and Schedules D, D-1, and P; and to override amounts calculated on the Allocation of Expenses by Income Type Worksheets.

Capital Gains and Losses

Use this section to complete Schedule D.

Capital gains / losses

Information in the field transfers from the Capital gains / losses dialog on federal Form Income. If the California data differs from the federal data, delete the data (if you don’t want the amount on the state return at all) or enter the state amount in the appropriate column. ExacTax displays the new data in black. ExacTax will not overwrite the new data with subsequent federal-to-state transfers.

Generally, any changes made to the federal field are automatically reflected in the state dialog. However, items that are deleted at the state level are not re-transferred; items added at the state level are not overwritten by subsequent transfers; and information in columns that do not exist at the federal level is not deleted by subsequent transfers.

Alternative minimum tax adjustment: Short-term

Enter the short-term adjustment for the Schedule D for AMT Worksheet, line 1 if it differs from the federal amount. If this field is blank, ExacTax/1041-CA defaults to the federal amount.

If the return is an ESBT with non-S Corporation income, enter the amount of the net short-term capital gain /loss adjustment for AMT purposes in the ESBT field and enter the amount of the net short-term capital gain / loss adjustment for AMT purposes for the remainder of the trust in the Other field.

Alternative minimum tax adjustment: Long-term

Enter the long-term adjustment for the Schedule D for AMT Worksheet, line 1 if it differs from the federal amount. If this field is blank, ExacTax/1041-CA defaults to the federal amount.

If the return is an ESBT with non-S Corporation income, enter the amount of the net long-term capital gain /loss adjustment for AMT purposes in the ESBT field and enter the amount of the net long-term capital gain / loss adjustment for AMT purposes for the remainder of the trust in the Other field.

Alternative minimum tax adjustment: California Source

Enter the instate source short-term or long-term adjustment if it differs from the total source amount. If this field is blank, ExacTax/1041-CA defaults to the total source amount.

If the return is an ESBT with non-S Corporation income, enter the amount of the net capital gain /loss adjustment for AMT purposes in the ESBT field and enter the amount of the net capital gain / loss adjustment for AMT purposes for the remainder of the trust in the Other field.

Schedule D-1 Additional Information

Use this section to enter section 280F recovery recapture amounts for Schedule D-1, Part IV.


352

Net Income

Information entered in this section is used to calculate Schedule K-1 and the Allocation of Expenses by Income Type Worksheets.

Interest / … / Long-term capital gains

ExacTax/1041-CA automatically determines the amount of California Law and California Source net income from information entered at the federal level and prints the income amounts on the Allocation of Expenses by Income Type Worksheets. Enter amounts to override the calculations.

Expenses Attributable to Source Income

Information entered in this section is used to calculate Schedule K-1 and the Allocation of Expenses by Income Type Worksheets.

Interest / … / Miscellaneous deductions subject to 2% floor

ExacTax/1041-CA automatically determines the amount of California Law and California Source expenses based on the proportion of California income to total income on the Allocation of Expenses by Income Type Worksheets. Enter amounts to override the calculations.


353

CA Deductions

Schedule B - Income Distribution Deduction

CADeduct

6FCADED 01 11/03/16 FIDUCIARY

Net accounting income (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustment to:

Gross income from investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[6]Net gain from disposition of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment expenses (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nontaxable installment sale gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overflow #

CA3

2016

ExacTax, Inc.

CA3

Capital gains to include in investment income if not 100% (Force) . . . . . . . . . . . . . . . . . .

Net capital gain from disposition of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains include in distributable net income, if different from federal: (Force)

# Beneficiary Name (50) Amount

[§ 21] Computation of income distribution deduction for pooled income fund

[14]

[17][16]

[5][4]

Net operating loss carryback (Force) (Amended return only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [1]

Investment Interest Expense

AGI for miscellaneous itemized deductions subject to 2% floor (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [2]

AGI for electing small business trusts (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [3]

ESBT/QSSTOther

[9][10][11][12][13]

[7][8]

[15]

Other amounts paid, credited, or distributed (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[18][19]

Tax-exempt income included in total distributions (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]

Income required to be distributed (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


354

Form [CA3] - California Deductions

Overview

Use this form to complete Form 541, Pages 1 and 3, and Form 3526.

Deductions

Use this section to enter information for net operating loss carrybacks and miscellaneous itemized deductions.

Net operating loss carryback (Force)

If this is an amended return, enter the amount of net operating loss carryback from later years. ExacTax/1041-CA combines this amount with amounts entered in the Net Operating Loss section of Form CACO and in the Loss carryovers: Net operating field on Form CAK1T and prints it on Form 541, line 15a.

Note: Enter net operating loss carryovers from previous years in the Net Operating Loss section of Form CACO.

AGI for miscellaneous itemized deductions subject to 2% floor (Force)

Enter an amount to override the adjusted gross income that ExacTax calculates. ExacTax/1041-CA uses this amount in the calculation of two percent of AGI for expenses subject to the limitation on Form 541, line 15b. If this field is left blank, ExacTax/1041-CA uses the amount calculated or forced for federal Form 1041.

AGI for electing small business trusts (Force)

If the return is for an ESBT with non-S Corporation income, ExacTax/1041-CA calculates adjusted gross income and the limitation of two percent of AGI for expenses subject to the limitation separately for the ESBT and non-S Corporation income. Use this field to override the adjusted gross income calculated for the ESBT income. If this field is left blank, ExacTax/1041-CA uses the amount calculated or forced for the federal return.

Investment Interest Expense

Use this section to enter information for investment interest expense.

Adjustments to Form 3526 amounts: Gross income from investments

Enter the adjustment to Form 3526, line 4a for gross income from property held for investment. If the client is an ESBT with non-S Corporation income, enter the adjustment from the S Corporation part of the trust in the ESBT / QSST field and enter the adjustment from the remainder of the trust in the Other field. Your entry does not override the amount ExacTax calculates; it increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.

Note: If you select ESBT (Return has only S corporation income) in the Type of entity field on federal Form 1041, ExacTax/1041-CA completes Form 3526 with amounts from the S Corporation. In this case, enter the adjustment in the Other field.

Adjustments to Form 3526 amounts: Net gain from disposition of investments

Enter the adjustment for any net gain from disposition of property held for investment. If the client is electing small business trust with non-S Corporation income, enter the amounts for the S Corporation part of the trust in the ESBT / QSST field and enter the amounts for the remainder of the trust in the Other field. Your entry does not override the amount ExacTax calculates; it increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.


355


Adjustments to Form 3526 amounts: Net capital gain from disposition of investments

Enter the adjustment for any net capital gain from the disposition of property held for investment. If the client is an electing small business trust with non-S Corporation income, enter the amounts for the S Corporation part of the trust in the ESBT / QSST field and enter the amounts for the remainder of the trust in the Other field. Your entry does not override the amount ExacTax calculates; it increases or decreases the calculation as appropriate. ExacTax treats negative entries as subtractions.


Investment expenses (Force)

ExacTax/1041-CA calculates an amount for Form 3526, line 5 using amounts from Form CAK1-2 and expenses from royalty units of Form CARent. Enter an amount to override the calculation for investment expenses. If the client is an electing small business trust with non-S Corporation income, enter the amounts for the S Corporation part of the trust in the ESBT / QSST field and enter the amounts for the remainder of the trust in the Other field.


Capital gains to include in investment income if not 100% (Force)

Enter the amount of long-term capital gains to be treated as investment income, if less than the maximum. If this field is blank, ExacTax/1041-CA uses the maximum amount allowable. If the client is an electing small business trust with non-S Corporation income, enter the amounts for the S Corporation part of the trust in the ESBT / QSST field and enter the amounts for the remainder of the trust in the Other field. ExacTax/1041-CA includes the amount of long-term capital gains elected here as investment income on Form 3526, line 4e.

Notes

This treatment differs from that used in ExacTax/1041.

If you select ESBT (Return has only S corporation income) in the Type of entity field on federal Form 1041, ExacTax/1041-CA completes Form 3526 with amounts from the S Corporation. In this case, enter the adjustment in the Other field.

Schedule B - Income Distribution Deduction

Use this section to enter information for Form 541, Page 3, Schedule B.

Nontaxable installment sale gain

Enter any nontaxable gain from installment sales of small business stock sold prior to October 1, 1987 and included in distributable net income. This amount is added to adjusted tax-exempt interest on Schedule B, line 2.

Capital gain includible in distributable net income, if different from federal


356

If the Includible in distributable net income per trust document: 100% of capital gains field is marked on federal Form Dist, ExacTax/1041-CA uses that information for California. If only a portion of short-term and / or long-term capital gains is includible on Schedule B, line 3, enter that amount in these fields. If both fields are blank, ExacTax/1041-CA uses the amount of capital gain included on federal Schedule B, line 3.


If the return is a complex trust, ExacTax/1041-CA prints federal accounting income on Form 541, Page 3, Schedule B, line 8. Use this field to override the amount.

Income required to be distributed (Force) / Other amounts paid, credited, or distributed (Force)

ExacTax/1041-CA automatically calculates the distribution amounts on Form 541, Page 3, Schedule B, lines 9 and 10 using the beneficiary share of net income amounts on the Allocation of Expenses by Income Type Worksheets. Use these fields to override the calculated amounts.

Tax-exempt income included in total distributions (Force)

ExacTax/1041-CA automatically calculates the amount of tax-exempt income included on Form 541, Page 3, Schedule B, line 11.

Computation of income distribution deduction for pooled income fund

Information in the field transfers from the Pooled income funds: Computation of income distribution deduction dialog on federal Form Allocate. If the California data differs from the federal data, delete the data (if you don’t want the amount on the state return at all) or enter the state amount in the Amount column. ExacTax displays the new data in black. ExacTax will not overwrite the new data with subsequent federal-to-state transfers.

For a pooled income fund, ExacTax/1041-CA calculates an income distribution deduction amount but does not complete Schedule B.



357

Form 541-A - General Information and Charitable Deduction

Federal Amount

CAChar CA Schedule A - Charitable Deduction

6FCACHAR 01 11/03/16 FIDUCIARY

[9]Required to file Form 990-T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Description (50)#[§ 8] Explanation of differences from 1041-A

State Amount

Accumulated income set aside in prior tax years (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allocable tax-exempt income (Force). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 541-A or 541-B - Charitable Deduction (All fields default to federal amounts)

AmountCharitable Purpose, Name and Address (59)#[§ 10] Charitable deduction itemized by purpose

#[§ 12] Accumulated income set aside in prior tax years distributed in current year

Principal distributed in prior years (Force) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payee's Name and Address (30)

Overflow #

CA4

2016

ExacTax, Inc.

CA4

Principal Distributed#[§ 1] Paid for charitable purpuses from current year income

Street

Amount

City, State, Zip Date of Cont.Charitable Recipient(35)

Principal Distributed#[§ 2] Permanently set aside for charity from current year income

Date of Cont.Charitable Recipient(35)

Principal Distributed#[§ 4] Long-term capital gains included in current year income


Principal Distributed#[§ 5] Long-term capital gains paid permanently set aside for charitable purposes


Principal Distributed#[§ 6] Short-term capital gains included in current year income


Principal Distributed#[§ 7] Short-term capital gains paid or permanently set aside for charitable purposes


Date Income DistributedCharitable Purpose Description of Assets (30)

[3]

[11]

[13]

Street City, State, Zip





# Payee's Name and Address (30) Date Income DistributedCharitable Purpose Description of Assets (30)

[§ 14] Principal distributed during current year

Amount

Amount

Amount

Amount

Amount

Form 541-A or 541-B - Balance Sheet

[16]

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [18]Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [20]Nontaxalbe income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [22]

[17][19][21]

Undistributed:Trust principal or corpus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[15]



358

Form [CA4] - California Charitable Returns

Overview

Use this form to complete Form 541, Page 2, Schedule A, Form 541-A, and Form 541-B.

Schedule A - Charitable Deduction

Use this section to enter California amounts for Form 541, Schedule A if they differ from the federal amounts.

Paid for charitable purpose from current year income

Charitable information transfers automatically from federal Form Charity. If the California data differs from the federal data, delete the data (if you don’t want the amount on the state return at all) or enter the state amount in the Contribution Amount column. ExacTax displays the new data in black. ExacTax will not overwrite the new data with subsequent federal-to-state transfers.


Permanently set aside for charity from current year income



Allocable tax-exempt income (Force)

ExacTax/1041-CA adjusts the amount on Schedule A, line 2 for differences between federal and state law regarding tax-exempt income. Enter an amount to override the calculation.

Long-term / Short-term capital gains: Included in current year income / Paid or permanently set aside for charitable purposes


If these fields are blank, and percentages are entered on federal Form Charity for these items, ExacTax/1041-CA calculates the amount on Schedule A, line 4 using the percentages and California short and / or long-term capital gain amounts.



359

Form 541-A - General Information and Charitable Deduction

Use this section to enter information to answer the questions listed on Form 541-A, Page 1.

Explanation of differences from 1041-A

Enter an explanation of the differences between any of the amounts shown on this return and the corresponding amounts reported on federal Form 1041-A.

Required to file Form 990-T

Enter X if the trust is required to file federal Form 990-T. ExacTax/1041-CA uses this information to complete Form 541-A, question 7.


Information in the field transfers from the Charitable deduction itemized by purpose dialog on federal Form 1041A. If the California data differs from the federal data, delete the data (if you don’t want the amount on the state return at all) or enter the state amount in the Amount column. ExacTax displays the new data in black. ExacTax will not overwrite the new data with subsequent federal-to-state transfers.


Form 541-A or 541-B - Distributions

Use this section to enter California amounts for Form 541-A, Parts II and III, or Form 541-B, Part IV, if they differ from the federal amounts.

Accumulated income set aside for charitable purposes: In prior tax years (Force)

Enter the amount for Form 541-A, line 16 or Form 541-B, line 33a if it differs from the federal amount. If this field is blank, ExacTax/1041-CA defaults to the federal amount.

Accumulated income set aside for charitable purposes: In prior tax years distributed in current year

Information in the field transfers from the Distributions of income for charitable purposes: Accumulated income set aside in prior tax years dialog on federal Form 1041A or the Income and accumulated income set aside field on federal Form SIT. This information may be edited for California purposes.


Distributions of principal for charitable purposes: In prior years (Force)

Enter the amount for Form 541-A, line 22 or Form 541-B, line 30 if it differs from the federal amount. If this field is blank, ExacTax/1041-CA defaults to the federal amount.

Distributions of principal for charitable purposes: During current year


360

Information in the field transfers from the Distributions of principal for charitable purposes: During current year dialog on federal Form 1041A or the Principal field on federal Form SIT. This information may be edited for California purposes.


Form 541-A or 541-B - Balance Sheet

Use this section to enter California amounts for Form 541-B, Part V.

Trust principal or corpus / Nontaxable income: Beginning of Year

Enter amounts to complete the beginning of year net asset fields on Form 541-B. If ExacTax/1041-CA was used in the prior year, the information in the Beginning of Year field proformas automatically. If necessary, enter the beginning-of-year amounts. If you leave these fields blank, ExacTax/1041-CA defaults to the federal amounts.

Trust principal or corpus: End of Year

Enter the end of year trust principal or corpus amount. If you leave this field blank, ExacTax/1041-CA defaults to the federal amount.

Undistributed: End of Year

For a charitable remainder trust, ExacTax calculates the end-of-year undistributed amounts on Form 541-B, Page 6, Schedule A, Part I. To override the amounts for Form 541-B, Page 4, line 58, column (b) enter the amount of undistributed income in these fields.


361

California EstimatesCAEst (2016)

Overpayment

Form 541-ES


Amount for code 2


Amounts for code 6:


Taxable income

Credits


WithholdingNumber of vouchers desired next year, if other than four


Taxes

3rd payment4th payment

1st payment2nd payment

Amounts for next year's payments made:

2nd payment1st payment

4th payment3rd payment

Amounts for code 5 or 9:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

CAEst CA5A

2016 FIDUCIARY1/23/2017 8:17:13 AM


362

Form [CA5A] - California Estimates

Overview

Use this form to complete Forms 541, 541-QFT, and 541-ES.

Overpayment

To have ExacTax/1041-CA calculate next year’s estimated tax liability and required payments, enter 2, 3, 4, 5, 6, or 7 in the Application of current year overpayment field, or make an entry in the Next year declaration field.


The code options available are the same as those in ExacTax/1041. They instruct ExacTax/1041-CA how to apply any current-year overpayment. The entry affects what prints on Form 541, Page 2 of the return and the calculation of estimated tax payments for next year. The overpayment options are listed in the fieldview and in the following table.

Code Description

1 Refund 100 percent of the overpayment. This is the default option.

2 Apply 100 percent of the overpayment to next year’s estimates; refund excess. This option applies the overpayment to each estimate in full until the overpayment is exhausted or until all estimated payments are made, in which case the excess is refunded.

3 Apply to first estimate of next year; refund excess.

4 Apply equally to each estimate; refund excess. This option divides the total overpayment by the number of next year payments desired, applies this amount to each estimate, and refunds any excess overpayment.

5 Apply the portion of the overpayment shown in the Amount for code 5 or 8 field to the estimates until the amount is exhausted or all payments are made, in which case the excess is refunded.

6 Apply to first and second estimates of next year; refund excess.

7 Apply 100 percent of this overpayment to next year’s estimates; provide no refund.

8 Apply amount specified below in the Amount for code 5 or 8 field. If this code is entered and the Next year declaration field is blank, estimates do not calculate.


Enter the amount of overpayment for ExacTax/1041-CA to use in the calculation of estimates.

Form 541-ES

To have ExacTax/1041-CA calculate the estimated tax liability and the required payments for next year, enter option 2 through 7 in the Application of current year overpayment field in the previous section, or make an entry in the Next year declaration field.

Notes

Estimates are not prepared for grantor and agency trusts unless code 5 or 9 is entered in the Next year declaration field.

ExacTax/1041-CA calculates safe harbor estimates at 110% of current year tax for returns with federal taxable income over $150,000 only when code 1, 3, or 8 is entered in the Next year declaration field.


363


The codes used are the same as those in ExacTax/1041. They tell ExacTax/1041-CA which method to use to determine the amount of the estimated tax for next year. If code 2 through 7 is entered in the Application of current year overpayment field in the previous section, ExacTax/1041-CA defaults to option 1 in the Next year declaration field. If both fields are blank, ExacTax/1041-CA does not generate estimate vouchers or estimate filing instruction information. The options for the Next year declaration field are listed in the fieldview and in the following table.

Code Description

1 Use the current-year income tax liability. This is the default if option 2, 3, 4, 5, 6, or 7 is entered in the Application of current year overpayment field.


2 Use the current-year income tax liability plus the adjustment in the Amount for code 2 field. If this option is selected, also enter an adjustment to the current-year tax liability in the Amount for code 2 field. If the adjustment represents a decrease, enter a negative amount.

3 Use the current-year income tax liability even if the total liability falls below the minimum amount required to make estimated payments.

5 Use amounts entered below. If this code is selected, also enter amounts in the Amounts for code 5 or 9 or Amounts for next year’s payments made fields.

Note: These amounts are adjusted by any overpayment applied.

6 Use the current-year amounts plus the adjustments in the Amounts for code 6 fields. If this code is selected, also enter adjustments to the current-year amounts in the Amounts for code 6 fields. If the adjustment represents a decrease, enter a negative amount.

8 Use next year’s tax rates to calculate liability. Select this code to calculate next year’s estimates when tax rates change from year to year. If you select this code and the rates for the next year have not changed, estimates are calculated as if you selected code 1.


9 Use amounts entered below. If this code is selected, also enter amounts in the Amounts for code 5 or 9 or Amounts for next year’s payments made fields.

Note: These amounts are not adjusted by any overpayment.

Amount for code 2

Enter an adjustment amount for ExacTax/1041-CA to use in the calculation of estimates if 2 is selected for the Next year declaration field. If the adjustment represents a decrease, enter it as a negative amount.

Amounts for code 5 or 9: 1st - 4th payment

Use these fields to specify the estimate amounts for each quarter.

If you enter code 5 in the Next year declaration field, enter the desired quarterly payments in these fields. These amounts adjust by the overpayment applied, if applicable and print on the vouchers.

If you enter code 9 in the Next year declaration field, enter the desired quarterly payments in these fields. ExacTax/1041-CA prints these amounts on the vouchers without adjustment.


364

Amounts for next year’s payments made: 1st - 4th payment

Use these fields to enter any estimated payments already made toward the next year.

If you enter code 1, 2, 3, 6, or 8 in the Next year declaration field, enter the amounts paid for each next year estimate. These amounts and the overpayment applied are subtracted from the calculated quarterly estimated tax liability to determine the voucher amounts.

Amounts for code 6

Enter adjustment amounts if code 6 is entered in the Next year declaration field. If an adjustment represents a decrease, enter it as a negative amount.

Number of vouchers desired next year, if other than four

Enter a code to specify fewer than four vouchers. The options for the number of vouchers are listed in the fieldview and in the following table. The overpayment and amounts already paid toward next year estimates are applied to each voucher based on the overpayment code and the quarter in which the amounts were paid.

Code Description

3 The last three vouchers are generated. Any unpaid balance from the first estimate is included in the second estimate voucher.

2 The last two vouchers are generated. Any unpaid balance from the first or second estimate is included in the third estimate voucher.

1 100 percent of the gross estimated tax liability is allocated to the fourth voucher.

A 100 percent of the gross estimated tax liability is allocated to the first voucher.

B 100 percent of the gross estimated tax liability is allocated to the second voucher.

C 100 percent of the gross estimated tax liability is allocated to the third voucher.


Enter rounding specifications for the estimated payments to round the payments up to the nearest factor indicated. For example, to round up each estimated payment to the nearest $10, enter 10. If this field is blank, ExacTax/1041-CA automatically rounds each estimated payment up to the next dollar.


Enter X to have ExacTax/1041-CA print the year end date instead of the standard fourth payment date on the Estimated Tax Payments Worksheet and in the estimate filing instructions.


365

California Payments, Extension, PenaltiesCAPay (2016)

Payments and Other Taxes

Extension

Penalties and Interest

Underpayment of estimated tax penaltyLate interest

Form 5870APaid with extension, for Form 541

Suppress on Form 541:

Tax after credits

Section 453A interestQualified settlement fund tax

11 Months


7 Months4 Months

Extended due date (For transmittal letters and filing instructions / penalty and interest calculations)


Equal to penalty calculatedExplanation

Tax year less than 12 months

Taxable income for annualized method (Force):2 Months

Adjusted gross incomeTax on lump‐sum distribution


Failure to file penaltyFailure to pay penalty

Waiver requested:Amount

Credit recaptureUse tax

ESBTTotal

Withholding to reclassifyWithholding not entered elsewhere

4th quarter3rd quarter2nd quarter1st quarter

Withholding as actually withheld:

Prior year:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 29 30 31

32 33 34 35

CAPay CA5B

2016 FIDUCIARY1/23/2017 8:17:13 AM


366

Form [CA5B] - California Payments, Extension, Penalties

Overview

Use this form to complete Forms 541, 541-QFT, 3563, 5805, and 5805F.

Payments and Other Taxes

Use this section to enter payments and other taxes not entered elsewhere. ExacTax/1041-CA uses this information to complete the Tax and Payments section of Form 541 and in the calculations for Forms 5805 and 5805F.

Note: State estimated tax payments are entered on federal Form StPmt so that they can be used as deductions on the federal return. Amounts you enter in the State Payments section of federal Form StPmt with a postal code of CA are used on Form 541, Page 1 and Form 541-QFT (or Form 541-T when applicable).

Withholding not entered elsewhere

Enter an amount to adjust Form 541, line 29 or Schedule K-1 (Form 541), line 13b, depending on the percentages entered in the Withheld income taxes / backup withholding field in the View > Beneficiary Information > Federal tab > Other Allocations section.

Note: Form 541, line 29 must equal state withholding entered on federal Forms 1099R, W2, and W2G coded to California for the return to be electronically filed.

Withholding to reclassify

Enter an amount to adjust Form 541, line 31, so it equals the amount withheld on Forms 592-B and 593 received from withholding entities. This amount is subtracted from the withholding available for Form 541, line 29 or for Schedule K-1 (Form 541), line 13b, depending on the percentages entered in the Withheld income taxes / backup withholding field in the View > Beneficiary Information > Federal tab > Other Allocations section.

Note: Form 541, line 29 must equal state withholding entered on federal Forms 1099R, W2, and W2G coded to California for the return to be electronically filed.

Paid with extension, for Form 541

Each time you print the extension (via File > Print Extensions), ExacTax:

calculates the extension payment amount and prints it on the extension voucher

enters the calculated amount in this field, and

prints this amount on the main return.

Form 5870A

Enter the tax from the accumulation distribution of trusts that you calculated on Form 5870A. ExacTax/1041-CA prints "Form 5870A" in a statement for Form 541, line 21b.

Note: Form 5870A is available as a noncalculating form.

Section 453A interest

Enter the amount of interest due under IRC section 453A(c). ExacTax/1041-CA prints "IRC Section 453A" in a statement for line 21b.


367

Qualified settlement fund tax

Enter the amount of qualified settlement fund (QSF) tax to report on Form 541, Page 1, line 21c.

Credit recapture

Use the field to enter recapture amounts or interest owed by the estate or trust from Forms 3501, 3534, 3535, 3805Z, 3806, 3807, 3808, 3809, and 3834. ExacTax/1041-CA includes this amount on Form 541, line 34, or subtracts the amount from line 35, as appropriate.

Use tax

Enter the amount of use tax to report on Form 541, Page 2, line 38.

Extension

Use this section to complete Form 3563 and to extend the due date of the return. To print Form 3563, choose File > Print Extensions.

Extended due date

If you print an extension by choosing File > Print Extensions, the extended due date automatically appears in this field. Otherwise, enter the date to use as the extended due date in the calculation of late-filing penalties and in the filing instructions. If this field is blank, it is assumed that the return is not extended.


If you enter an amount in this field, ExacTax/1041-CA does the following:

completes the Extended due date field, and

transfers the amount to the Paid with extension, for Form 541 field.

Penalties and Interest

Use this section to enter information for the calculation of Forms 5805 and 5805F late-filing interest and penalties.


If the date entered is after the return due date, ExacTax/1041-CA automatically calculates the penalty for failure to pay, failure to file, and interest on the underpayment. If this field is blank, ExacTax/1041-CA defaults to the original due date of the return. ExacTax/1041-CA prints interest and penalty amounts, if applicable, in the Tax and Payments section of Form 541, Page 2.

Waiver requested: Amount / Equal to penalty calculated

If a partial waiver of the underpayment penalty is requested, enter the amount in the Amount field. If a waiver of 100 percent of the penalty is requested, enter X in the Equal to penalty calculated field.

Note: If you enter an amount in the Amount field, ExacTax uses this as the waiver amount, regardless of any entry in the Equal to penalty calculated field.

Waiver requested: Explanation

The information entered in the field prints on an accompanying statement and marks the Yes checkbox for waiver of the penalty on Form 5805, Page 1.


368

Withholding, as actually withheld

To have withholding credited as actually withheld, enter the amount of state income tax withheld from all sources for each period. The amounts entered in these fields transfer to Form 5805, Part I, line 3.

Prior year: Tax after credits / … / Tax on lump-sum distribution

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, enter the prior year amount. Enter 0 (zero) if there was no tax liability last year. ExacTax/1041-CA uses this information to determine the estimate requirements for Form 5805, Part II, and to calculate the required installments for Part III.

Note: If you leave the Tax after credits field blank, ExacTax/1041-CA defaults to using the current-year tax to determine the amount of estimated tax payment penalty that the estate or trust is required to pay.

Tax year less than 12 months

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, if the prior year was a short year, enter X. If there is input in this field, ExacTax/1041-CA does not complete Form 5805, Part II, line 5 or Form 5805-F, Part I, line 7, and calculates the underpayment penalty using only the current year tax amounts.


ExacTax/1041-CA uses the short method of calculating the penalty, if possible. Enter X to force ExacTax/1041-CA to use the regular method of calculating the penalty.

Suppress on Form 541: Underpayment of estimated tax penalty

ExacTax/1041-CA prints Form 5805 or 5805-F and enters the amount on the applicable line on Form 541 or 541-QFT. Enter X to suppress the printing of Form 5805 or 5805-F and the calculation of the underpayment penalty on the return.

Note: ExacTax prints Form 5805 or 5805-F as the instructions state conditions for printing. If the Underpayment of estimated tax penalty field is marked, Form 5805 or 5805-F does not print. To suppress the penalty but print the form, enter X in the Underpayment of estimated tax penalty field, choose View > Form, then choose Edit > Overrides > Force Form To Print.

Suppress on Form 541: Late interest

ExacTax/1041-CA calculates the late interest, failure to file, and failure to pay penalties on the Interest and Penalty Worksheets. The Interest and Penalty Worksheets print if any penalty exists and is not suppressed. Enter X to suppress any late interest calculated on Form 541 or 541-QFT and to print "Interest suppressed on the return" on the worksheet.

Suppress on Form 541: Failure to file penalty

ExacTax/1041-CA calculates the late interest, failure to file, and failure to pay penalties on the Interest and Penalty Worksheets. The Interest and Penalty Worksheets print if any penalty exists and is not suppressed. Enter X to suppress any failure to file penalty calculated on Form 541 or 541-QFT and to print "Penalty suppressed on the return" on the worksheet.

Suppress on Form 541: Failure to pay penalty

ExacTax/1041-CA calculates the late interest, failure to file, and failure to pay penalties on the Interest and Penalty Worksheets. The Interest and Penalty Worksheets print if any penalty exists and is not suppressed. Enter X to suppress any failure to pay penalty calculated on Form 541 or 541-QFT and to print "Penalty suppressed on the return" on the worksheet.

Taxable income for annualized method (Force)


369

Enter the taxable income for each period to complete Form 5805, Part III. If these fields are blank, ExacTax/1041-CA uses the proportional share of taxable income for each period.


370

Income and Directly Allocable Deductions


CAK1T CA 1041 Pass-Through-General, Income, Final Year

6FCAK1T 01 11/03/16 FIDUCIARY

Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CA6A

2016

ExacTax, Inc.

CA6A

Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ordinary business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net rental real estate income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[20]

Directly apportioned deductions:Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Activity unit number . . . . . . . . . . . . [1]

Line 335678

9a9b9c

541

[18]

[12][11][14][16]

[26][24]

[28]

[30][32][34]

11b11b11c11d

541

Net operating for alternative minimum tax purposes . . . . . . . . . . . . . . . . . . . [36]

California Source

[15][17]

[13]

[19][21] [22]

California Law

[25][23]

[27]

California SourceCalifornia Law

[29][31][33][35]

Loss carryovers:

Name of entity (35) . . . . . . . . . .

Employer identification number . . . .

State postal code[3]

[4]

[5]

Address. . . . . . . . . . . . . . . . . . . .City, state, zip code . . . . . . . . . .Foreign country code/name . . .Foreign province/county . . . . . .Foreign postal code . . . . . . . . . .

[41] [42][43][44]

[6][7] [8] [9]

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Entire disposition, 2 = Entire disposition on installment) [10]


371

Form [CA6A] - California 1041 Pass-Through General, Income, Final Year

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CAK1T transfer automatically from federal Form K1T. It is important that any state-related law differences and details are reported on Form CAK1T.


372

California 1041 Pass-Through AMT, Other, PassivesCAK1T-2 (2016)


Other Information


Regular

Unit

State

Passive activity code (1 = Other passive activity, 2 = Rental real estate with active participation (estates only), 3 = No limitation applies)


Aggregation group

Carryovers:Alternative Minimum Tax

Exclusion itemsAmortizationDepletionAccelerated depreciation

Adjustment for minimum tax purposes

Gross farming and fishing income

Name

OperatingSchedule D, Short‐termSchedule D, Long‐termSchedule D‐1, Part ISchedule D‐1, Part II



Alternative minimum tax adjustment attributable to:Net short‐term capital gainNet long‐term capital gain

1

2 3

4 5

6 7

8 9

10 11

12 13

14 15

16 17

20 21

22 23

24

25

26 27

28 29

30 31

32 33

34 35

CAK1T-2 CA6B

2016 FIDUCIARY1/23/2017 8:17:13 AM


373

Form [CA6B] - California 1041 Pass-Through AMT, Other, Passives

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CAK1T-2 transfer automatically from federal Form K1T-2. It is important that any state-related law differences and details are reported on Form CAK1T-2.

Carryovers

If available, state-specific carryover information proformas to these fields. When state-specific information is not available to proforma, the federal carryover amounts transfer to these fields.

Note: ExacTax treats blank Alternative Minimum Tax fields as having no AMT carryover. ExacTax does not use the regular carryovers as a default AMT amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the Regular and Alternative Minimum Tax fields. ExacTax also uses this information to complete Schedule P and Form 3801, if applicable.


374

Rent/lease - machinery . . . . . . . . . . . . . . . . . .

General Information

Income

Amount [24]

Expenses

CAC CA Schedule C

6FCASCHC 01 11/03/16

Activity unit number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer ID number . . . . . . . . . . . . . . . . .

State Postal code (Required for state processing) . . . . . . .

Principal business or profession (35)

Business code . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name (35)

Business address (35)

City (20) . . . . . . .

State/Zip code

[9]

Accounting method (1 = Cash (Default), 2 = Accrual, 3 = Other)

Other: (25) . . .

Material participation . . . . . . .(1 = Yes (Default), 2 = No)

Gross receipts or sales . . . . . . . . . . . . . . . . . . . .

Returns and allowances . . . . . . . . . . . . . . . . . . .[23]

Description (25)#

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . .Car and truck . . . . . . . . . . . . . . . . . . . . . . . . . .Commissions/fees . . . . . . . . . . . . . . . . . . . . . .Contract labor . . . . . . . . . . . . . . . . . . . . . . . . . .Depletion (Force) . . . . . . . . . . . . . . . . . . . . . . . .Depreciation (Force) . . . . . . . . . . . . . . . . . . . . .Employee benefits . . . . . . . . . . . . . . . . . . . . . .Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest-financial institution . . . . . . . . . . . . . . . .

Legal/professional fees . . . . . . . . . . . . . . . . . . .Office expenses . . . . . . . . . . . . . . . . . . . . . . . .Pension/profit sharing . . . . . . . . . . . . . . . . . . . .

Rent/lease - other . . . . . . . . . . . . . . . . . . . . . . .Repairs/maintenance . . . . . . . . . . . . . . . . . . . .Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxes/licenses . . . . . . . . . . . . . . . . . . . . . . . . .Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Meals/entertainment (subject to 50% limit) . . . . .Meals (subject to DOT 80% limit) . . . . . . . . . . . . .Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Wages (less employment credit) . . . . . . . . . . . . .


Memo only Total Expenses

[§ 24] Other income

[§ 50] Other expenses

FIDUCIARY

Began/acquired business this year . . . . . . . . . . . . . . .

Disposition of activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 = Entire disposition2 = Entire disposition of passive activity sold on installment

Overflow #

CA8A

2016

ExacTax, Inc.

CA8A

Interest-other . . . . . . . . . . . . . . . . . . . . . . . . . . .

[20]

[18]

[15]

[14]

[12]

[13]

[10] [11]

[8]

[4]

[3]

[2]

[1]

[5]

[6]

[25][26][27][28][29][30][31][32][33][35][37][38][39][40][41][42][43][44][45][46]

Form 1098 explanation[§ 34]

Form 1098 name / address[§ 36]

[16]

[17]

Payments were made that require filing Form(s) 1099 . . .

If yes, all required Form(s) 1099 were or will be filed . .

. . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes (Default), 2 = No)

. . . . . . . . . . . . . . . . . . . . . .(1 = Yes (Default), 2 = No)

Form 1099-MISC explanation:[21]

Income reported to you on Form W-2 if the"Statutory Employee" box is checked. . . . . . .

[47][48][49]

[§ 22]


375

Form [CA8A] - California Business Profit and Loss Page 1

Overview

Use this form to complete federal Schedule C with California amounts. Amounts that appear on Form CAC transfer automatically from federal Form C. It is important that any state-related law differences are reported on Form CAC.

Depletion (Force)

The ExacTax/Oil & Gas module, if used, determines the depletion expense for each activity. You can use this field to override the calculated amount; however, it is strongly recommended that you change the amounts in the ExacTax/Oil & Gas module instead to ensure that the state version(s) of the appropriate form(s) are correct.


If the asset module is used, it determines the depreciation expense for each activity. If the depreciation amount is incorrect, use this field to override the calculated amount. However, it is strongly recommended that you change the amounts in the asset module to ensure that the state version(s) of the appropriate form(s) are correct.


376

California Business Profit and Loss Page 2, Other, Passives


CAC-2

6FCAC-2 01 11/03/16 FIDUCIARY

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[23]

[7]

Alternative Minimum TaxRegularCarryovers:

Auto Information

Overflow # 2016

ExacTax, Inc. CA8B

CA8B

Labor . . . . . . . . . . . . . . . . . . . [§ 10]

#

[1]Unit

Principal business or profession . . . . . .[2] State

Explanation of Other Inventory Method

Change in inventory Method

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Description (31) Amount

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other costs . . . . . . . . . . . . . . .[§ 12]

# Description (31) Amount

Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Another vehicle for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Available for off-duty hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1 = Yes, 2 = No)

Evidence to support deduction . . . . . . . . .(1 = Yes, written; 2 = Yes, not written; 3 = No)

Date placed in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(mm/dd/yy)Total miles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Business miles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Commuting miles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Information

Aggregation group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount "at risk," if not 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preference items . . . . . . . . . .[§ 22]

# Description (45) Amount*Code

Circ - Circulation, research, experiment – post 1986Depl - Depletion on property – post 1986Depr - Depreciation on property post 1986Idc - Intangible drilling costsMine - Mining exploration & development Post 1986Farm - Tax shelter farm activities

*Code

Passive activity code . . . . . . .(1 = Other passive activity, 3 = No limitation applies)

Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule D:

Short-term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule D-1:Part I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[25]

[26][27]

[28][29]

[30]

[31][32]

[33][34]

[24]

[20][19][18][17][16][15]

[13]

[11]

[9]

[§ 6]

[§ 5]

[3]

[21]

Cost of Goods Sold

[14]

Beginning inventory explanation[§ 8]

[4]Inventory method/description (1 = Cost, 2 = LCM, 3 = Other) . . . . . . . . . . . . . . . . . . .


377

Form [CA8B] - California Business Profit and Loss Page 2, Other, Passives

Overview

Use this form to complete federal Schedule C with California amounts. Amounts that appear on Form CAC-2 transfer automatically from federal Form C-2. It is important that any state-related law differences and details are reported on Form CAC-2.

Carryovers

If available, state-specific carryover information proformas into these fields. When state-specific information is not available to proforma, the federal carryover amounts transfer to these fields.



378

Address (30)

Name (20)

Social SecurityName (20)#[§ 28] Seller financed interest

AmountAddress (30)

Social Security#

Amount

Income

CARent CA Rent and Royalty Property Income and Expense

6FCARENT 01 11/03/16

Activity unit number . . . . . .

Type of activity (1 = Single Family Residence, 2 = Multi-Family Residence, 3 = Vacation/Short-Term, 4 = Commercial, 5 = Land,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 = Royalties, 7 = Self-Rental, 8 = Other (describe))

State postal code (Required for state processing) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[1]

Insurance . . . . . . . . . . . . . . . . . . . . . . . . .

Auto and travel . . . . . . . . . . . . . . . . . . . . .

Cleaning and maintenance . . . . . . . . . . .

Commissions . . . . . . . . . . . . . . . . . . . . . . .

Advertising. . . . . . . . . . . . . . . . . . . . . . . . .

Legal and professional . . . . . . . . . . . . . . .

Description (Mandatory) (50)

Ownership percentage, if not 100.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(xxx.xx)

Rent and royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management fees . . . . . . . . . . . . . . . . . . .

Repairs . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . .

Depreciation (Force) . . . . . . . . . . . . . . . .

Description (25) Amount#

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . .

Depletion (Force) . . . . . . . . . . . . . . . . . . .

[§ 37] Other Expenses

Disposition of activity . . . . . . . . . . . . . . . . (1 = Entire disposition, 2 = Entire disposition of passive activity sold on installment)

Mortgage interest . . . . . . . . . . . . . . . . . . .

Other interest . . . . . . . . . . . . . . . . . . . . . .

FIDUCIARY

[17]

Expenses

Overflow #

CA9A

2016

ExacTax, Inc.

CA9A

[31]

[29]

[18]

[21]

[3]

[2]

[6]

Form 1098 explanation [§ 27]

[33]

[32]

Form 1098 name/address [§ 30]

Physical address:

Other rental description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[20]

[19]

[35]

[34]

If yes, all required Form(s) 1099 were or will be filled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 =No) [5]

Payment were made that require Form(s) 1099 to be filed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 = Yes, 2 =No) [4]

[22]

[36]

[16]

[15]

[14]

Street . . . . . . . . . . . . . . . . . . .

[7]City, state, zip code . . . . . . . . [8] [9]

Foreign country code / name [10] [11]

Foreign Providence/country [12]

Foreign Postal code . . . . . . . [13]

[25]

[24]

[23]

[26]


379

Form [CA9A] - California Rent and Royalty Property Income and Expense

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CARent transfer automatically from federal Form Rent. It is important that any state-related law differences and details are reported on Form CARent.


If the asset module is used, it determines the depreciation expense for each activity. If the depreciation amount is incorrect, use this field to override the calculated amount. However, it is strongly recommended that the information be changed in the asset module to ensure that the state version(s) of the appropriate form(s) are correct.

Depletion (Force)

If used, the ExacTax/Oil & Gas module determines the depletion expense for each activity. Use this field to override the calculated amount. However, it is strongly recommended that the information be changed in the ExacTax/Oil & Gas module instead to ensure that the state version(s) of the appropriate form(s) are correct.


380

California Rent and Royalty Property Other and PassiveCARent-2 (2016)

Personal Use Information

Refinancing Points

Other Information


Regular

Preference itemsAmount "at risk," if not 100%

Aggregation groupPassive activity code (Blank or 1 = Other passive activity, 2 = Rental real estate with active participation (estates only), 3 = No limitation applies)

State

Unit

Description

Carryovers: Alternative Minimum Tax

Schedule D‐1:

Part IIPart I

Long‐termShort‐term

Schedule D:

Operating:

OperatingDepreciation

Carryover of disallowed expenses into the current year:

Total number payments remaining as of beginning of yearRefinancing points paid or unamortized balance

Personal use percentage (Force) (xxx.xx)

Number of payments made this year

Number of days rentedNumber of days used personally

Other rentalRental real estateOrdinary business

1

2 3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

CARent-2 CA9B

2016 FIDUCIARY1/23/2017 8:17:13 AM


381

Form [CA9B] - California Rent and Royalty Property Other and Passive

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CARent-2 transfer automatically from federal Form Rent-2. It is important that any state-related law differences and details are reported on Form CARent-2.

Carryovers

If available, state-specific carryover information proformas to these fields. When state-specific information is not available to proforma, the federal carryover amount transfers to these fields.



382

California Farm General and IncomeCAF (2016)

General Information

Income

Principal product

Accounting method (1 = Cash, 2 = Accrual)

Material participation in the operation of this business this year (1 = Yes, 2 = No)

Unit

EINDescription

Disposition of activity (1 = Entire disposition, 2 = Entire disposition of a passive activity sold on installment)

State

Inventory:

Cost of products purchasedEnding inventory

Reported under electionTotal forfeitedTaxable forfeited

Commodity Credit Corporation loans:

Sale of products you raisedCost / other basis of livestock and other items bought for resaleSale of livestock and other resale items


Custom hire (machine work) income

Payments were made that require Form(s) 1099 to be filed (1 = Yes, 2 = No)

If yes, all required Form(s) 1099 were or will be filed (1 = Yes, 2 = No)

Beginning

Agricultural code / description

Taxable paymentsTotal payments

Taxable distributionsTotal distributions

Cooperative:

Agricultural program:

Total proceedsTaxable proceedsElect to defer to next yearDeferred from prior year

Crop insurance and federal disaster payments:

1

2

3

4

5

6 7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

CAF CA10A

2016 FIDUCIARY1/23/2017 8:17:13 AM


383

Form [CA10A] - California Farm General and Income

Overview

Use this form to complete federal Schedule F with California amounts. Amounts that appear on Form CAF transfer automatically from federal Form F. It is important that any state-related law differences and details are reported on Form CAF.


384

California Farm Expenses, Other, PassivesCAF-2 (2016)

Expenses

Other Information


Unit

State

UtilitiesVeterinary / breeding / medicineOtherPreproductive period

Car / truck expensesChemicalsConservation expensesCustom hire (machine work)

Rent / lease ‐ vehicles, machinery, and equipmentRent / lease ‐ other (land, animals, etc)

Freight / truckingGasoline / fuel / oilInsurance (other than health)Interest ‐ financial institutions

Depreciation (Force)Employee benefit programs other than pension / profit sharingFeedFertilizer / lime

Description


Aggregation group

Preference items

Seeds / plantsStorage / warehousingSuppliesTaxes

Regular

Passive activity code (1 = Other passive activity, 3 = No limitation applies)

Carryovers:Alternative Minimum Tax

Interest ‐ otherLabor hired, less employment creditsPension / profit sharing plans

Repairs / maintenance

Received a subsidy in current year

OperatingSchedule D, Short‐termSchedule D, Long‐termSchedule, D‐1, Part ISchedule, D‐1, Part II

1

2 3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

CAF-2 CA10B

2016 FIDUCIARY1/23/2017 8:17:13 AM


385

Form [CA10B] - California Farm Expenses, Other, Passives

Overview

Use this form to complete federal Schedule F with California amounts. Amounts that appear on Form CAF-2 transfer automatically from federal Form F-2. It is important that any state-related law differences and details are reported on Form CAF-2.


If the asset module is used, it determines the depreciation expense for each activity. If the depreciation amount is incorrect, use this field to override the calculated amount. However, it is strongly recommended that the information be changed in the asset module to ensure that the state version(s) of the appropriate form(s) are correct.

Carryovers

If available, state-specific carryover information proformas into these fields. When state-specific information is not available to proforma, the federal carryover amounts transfer to these fields.



386

California DistributionsCA1099R (2016)


Schedule G-1 - Lump-Sum Distributions Tax

%

%

Death benefit exclusionElect to include net unrealized appreciation in income

Beneficiary (1 = Yes, 2 = No, Blank = N/A)Participant (1 = Yes, 2 = No)

Plan participant born before 1936 and participant for at least 5 years prior to the distribution (1 = Yes, 2 = No)

Distribution paid to a death beneficiary (1 = Yes, 2 = No)Part of the distribution rolled over (1 = Yes, 2 = No)Entire distribution from qualified pension, profit sharing, or stock plan (1 = Yes, 2 = No)

Averaging method (1 = 10 year with capital gain, 2 = 10 year, 3 = 20% capital gain)

9a

87

6

3


OtherDistribution code


Capital gain (included in box 2a)

Non‐retirement income

NameTIN

Payer's address:

State tax withheld

Taxable amount

10

2a1 Gross distribution


Income typeState postal code


Employee contributions5


Total employee contributions9b

Schedule G‐1 used in a prior year by:

Foreign postal code

Foreign province / county


1

2

3

4 5 6

7 8

9

10

11

12

13

14

15 16

17

18

19 20 21

22

23

24

25

26

27

28

29

30

31

32

CA1099R CA11

2016 FIDUCIARY1/23/2017 8:17:13 AM


387

Form [CA11] - California Distributions

Overview

Use this form to complete Form 541, Page 1 and Schedule G-1. Amounts that appear on Form CA1099R transfer automatically from federal Form 1099R. It is important that any state-related law differences and details are reported on Form CA1099R.


388

California Depreciation and AmortizationCADepr (2016)

General Information

DepreciationAmortization

Cost Expense

Unit

Activity

Post‐86 depreciation adjustment

Form

AmortizationDepreciation

Prior years' acquisitions:

Current year's acquisitions:

1

23

4 5

6 7

8

9

10

CADepr CA12

2016 FIDUCIARY1/23/2017 8:17:13 AM


389

Form [CA12] - California Depreciation and Amortization

Overview

Use this form to complete Form 3885F. To properly allocate income for nonresident beneficiaries, ExacTax/1041-CA calculates Form 3885F with respect to forms and units and calculates a separate Form 3885F for each activity. ExacTax/1041-CA transfers depreciation and amortization information from the Form 51 to this input form. Depreciation and amortization transfer from Form 3885F to Schedules C, E, and F.

Notes

ExacTax provides a client-specific option regarding the entry of asset information. This form is not applicable when using the asset module to enter asset detail information.

We strongly recommend you enter all asset information through the Asset tab (asset module). This data entry method assures that California depreciation information transfers properly./li>

General Information

Enter information in this section to complete Form 3885F.

Unit / Form / Activity

These fields contain information about the business unit activity. ExacTax/1041-CA uses this information to gather and coordinate information for the business unit.


390

California Power of AttorneyCAPOA (2016)

General Information


Paper Filing Exceptions

Retain a prior power of attorney

Taxpayer change of address

Calendar years

Other authorized acts

Authorize all matters for four yearsTax years or income periods covered by the POA:

Fiscal and short‐period income yearsAuthorize representative to perform additional acts:

Receive, but not endorse, refund checkDelete a representativeAdd another representative

Tax years or income periods covered to receive confidential information only:Court‐ordered debtVehicle registration

Nontax issues:

Fiscal and short‐period income yearsCalendar years

Enter all that apply. If no exceptions met you must file online at ftb.ca.gov through your MyFTB account.

Do not have a PTIN, EFIN, etc.Non‐professional representativeLocated in a declared disaster area

Other explanationActive duty military member in combat zoneFirst‐time filer for the State of CaliforniaDocumented physical/mental impairment

Representative information

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

CAPOA CA13

2016 FIDUCIARY1/23/2017 8:17:13 AM


391

Form [CA13] - California Power of Attorney

Overview

Use this form to complete Form 3520.

Form 3520 prints only if information is entered in one of the Tax years or income periods fields or one of the Nontax issues fields.

General Information

Use this section to enter general information about the power of attorney.

Fiscal and short-period income years

Use the statement detail to enter fiscal years or short-period income years applicable to the authorization. Enter both beginning and ending dates.

Other authorized acts

If the other authorized acts for California are different from the federal information, enter the state information in this field.


Use this section to enter information about the representatives receiving authorization.

Representative information

Use the field in this section to enter representative information.

Note: Only the first two representatives entered in the field print on Form 3520. Additional representatives will be ignored.

Paper Filing Exceptions

Use this section to enter the reasons for filing Form 3520 on paper.

Located in a declared disaster area / … / Other explanation

ExacTax/1041-CA automatically enters X in the Estate or Trust checkbox on Form 3520. Use these fields to enter any other reason for filing Form 3520 on paper instead of through ftb.ca.gov.


392

Other portfolio income/loss . . . . . . . . . . . . . . . . . . . . . . . .

Income

Net short-term capital gain/loss . . . . . . . . . . . . . . . . . . . . .Net long-term capital gain/loss . . . . . . . . . . . . . . . . . . . . . .

City (20), state, zip code . . . . . . . .

Other income/loss:

CAK1

6FCAK1 01 11/03/16

CA 1065 & 1120S Pass-Through General Information

Activity unit number . . . . . . . . . . . .

Name of entity (35) . . . . . . . .

Type of entity . . . . . . . . . . . . . . . .

[1]

FIDUCIARY


State postal code . . . . . . . . . . .

Disposition of activity . . . . . . . . . . . . . . . . .(1 = Entire disposition, 2 = Entire disposition of passive activity sold on installment basis) [10]

Ordinary income/loss from trade or business . . . . . . . . . .Net income/loss from rental real estate . . . . . . . . . . . . . . .Net income/loss from other rental activities . . . . . . . . . . . .

Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net section 1231 gain/loss . . . . . . . . . . . . . . . . . . . . . . . .

Reported on Schedule E . . . . . . . . . . . . . . . . . . . . . . . . .Reported on Form 1041, line 8 . . . . . . . . . . . . . . . . . . . .Form 4797 ordinary gain/loss . . . . . . . . . . . . . . . . . . . . .

- See K1-2 -

Entity:

Address (35) . . . . . . . . . . . . . . . . .

[7]

(1 = Partnership, 2 = S Corp, 3 = Foreign partnership, 4 = Publicly traded partnership, 5 = Farm partnership)

Guaranteed payments to partner . . . . . . . . . . . . . . . . . . . .

CA14

2016

ExacTax, Inc.

CA14

(Mandatory)

(Required for state processing)

Involuntary conversions:Form 4684 long-term loss trade / business . . . . . . . . . . .Form 4684 long-term loss income producing . . . . . . . . .Form 4684 long-term gain . . . . . . . . . . . . . . . . . . . . . . . .

Line 1234789

10a/10b11a

11b/c

565 100S

Line 123

6789

10a

10b

[2]

[3]

[4]

[5]

[6]

[9]

[8]

[33][34]

[29][30][31][32]

[35][36]

[38][39][40]

[41][42]

[37]

[16][17]

[12][13][14][15]

[18][19]

[21][22]

[23][24][25]

[20]

[11]

California Law California Source

Net business capital gain/loss short-term . . . . . . . . . . . .Net business capital gain/loss long-term . . . . . . . . . . . . . [45][27]

[43][26]

Self charged interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . [46][28]

[44]


393

Form [CA14] - California 1065 and 1120S Pass-Through General and Income

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CAK1 transfer automatically from federal Form K1. It is important that any state-related law differences and details are reported on Form CAK1.


394

California 1065 and 1120S Pass-Through DeductionsCAK1-2 (2016)

Deductions

Other Information

Investment expenses

Gross farming or fishing income

Schedule E depletion expense:

Other deductions

Section 179 expense deduction (Grantor trusts only)

17b20b

13e

12b13b

Line 11Line 12

100S565

Page 2Page 1

12e

100S565

Beneficiary share, excluded on Schedule E

State

Unit

Name

Form 4684 short‐term loss income producingDepreciation adjustment

Royalty expenses


Investment interest expense (Form 3526)13a 12a Charitable contributions

Intangible drilling costs (Expensed only)

Share of partnership / S corporation gross income



Debt financed acquisition interestInvestment interest expense (Schedule E)

Preproductive period expenses expensedReforestation expense

1

2 3

4 5

6 7

8 9

10 11

12 13

14 15

16 17

18 19

20 21

22 23

24 25

26 27

28 29

30 31

32 33

34 35

36 37

38 39

40 41

CAK1-2 CA15

2016 FIDUCIARY1/23/2017 8:17:13 AM


395

Form [CA15] - California 1065 and 1120S Pass-Through Deductions

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CAK1-2 transfer automatically from federal Form K1-2. It is important that any state-related law differences and details are reported on Form CAK1-2.


396

California 1065 and 1120S Pass-Through AMT, Other, PassivesCAK1-3 (2016)

Adjustments and Tax Preference Items

Other Information



Passive activity code (1 = Other passive activity, 2 = Rental real estate with active participation (estates only), 3 = No limitation applies)

Unit

StateName

15e

15c

Depreciation adjustment post '86565 100S

Carryovers:

Research / experimentalCirculation expenditures

Other adjustments / tax preference items:Depletion adjustmentAdjusted gain or loss (Type of gain see federal Screen Inc)

Regular


Aggregation group

15b

17f

17c

17b

Line 15aLine 17a

Intangible drilling costsTax shelter farm activitiesLong‐term contractsMining costs

Schedule D‐1, Part IISchedule D‐1, Part ISchedule D, Long‐termSchedule D, Short‐term


Other rentalRental real estateOrdinary business

1

2 3

4 5

6 7

8 9

10 11

12 13

14 15

16 17

18 19

20 21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

CAK1-3 CA16

2016 FIDUCIARY1/23/2017 8:17:13 AM


397

Form [CA16] - California 1065 and 1120S Pass-Through AMT, Other, Passives

Overview

Use this form to complete federal Schedule E with California amounts. Amounts that appear on Form CAK1-3 transfer automatically from federal Form K1-3. It is important that any state-related law differences and details are reported on Form CAK1-3.

Carryovers

If available, state-specific carryover information proformas to these fields. When state-specific information is not available to proforma, the federal carryover amounts transfer to these fields.



398

California Sale of Business PropertyCASale (2016)

General Information

Sale Information

Schedule D-1, Part III - Recapture

Form 3805E - Installment Sales

Form 3805E - Related Party Installment Sale Information



Sale to related partyCasualty / theft gain postponed

1250 29(a)

29(b)

29(d)

1252 30(a)

30(b)

1254 31(a)

1255 32(a)

Form

Unit

Description

Section 1250 propertyGross proceeds reported on Form 1099‐S or 1099‐B (Schedule D‐1, line 1)

State

Applicable percentage, if other than 100 (xxx.xx)

Additional depreciation after 12/31/70Soil, water and land clearing expensesApplicable percentage, if other than 100 (xxx.xx)

Intangible drilling and development costsApplicable payments excluded from income under section 126

Mortgage and other debts the buyer assumedCurrent year payments received

Disposition due to casualty or theft (Part III assets only: used to determine the gains to carry to Form 4684, Section B, line 33)

Date acquiredDate soldGross sales price or insurance proceeds receivedCost or other basisCommissions and other expenses of saleDepreciation allowed or allowableAlternative minimum tax gain / loss adjustment

Additional depreciation after 12/31/76

City, state, zip codeIdentification number

Related party:NameAddress


1

2

3 4

5 6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30 31 32

33

34

35

36

37

38

CASale CA17

2016 FIDUCIARY1/23/2017 8:17:13 AM


399

Form [CA17] - California Sale of Business Property

Overview

Use this form to enter asset sale information for Schedule D-1 and Form 3805E. The information on this form transfers automatically from federal Form Sale. It is important that any state-related differences are reported on this form. Please note that Form CAIncome is used to enter additional information needed to calculate Schedule D-1.

Note: ExacTax provides a client-specific option regarding the entry of asset information. This form is not applicable when using the asset module to enter asset detail information.

We strongly recommend you enter all asset information through the Asset tab (asset module). This data entry method assures that Hawaii depreciation information transfers properly./li>


400

California Like-Kind ExchangesCA8824 (2016)

General Information

Part I - The Exchange


Related Party Exchange

Special condition if applicable (1 = Death of either party, 2 = Involuntary conversion, 3 = No tax avoidance)


Fair market value of non‐section 1245 like‐kind property received

Property given upState

Description of property received

AcquiredTransferred to other party

Identified

Fair market value of other property given upAdjusted basis of other property given upCash received


Liability assumedCash paidAdjusted basis of like‐kind property given up, etcLiability given upExchange expensesTotal potential ordinary income under recapture rules

Relationship

Form

Unit

During this tax year:

The like‐kind property received was sold or disposed of (1 = Yes, 2 = No)The related party sold or disposed of the property (1 = Yes, 2 = No)

Related party:


Fair market value of other (not like‐kind) property receivedInstallment obligation received in like‐kind exchange

Date like‐kind property given up was:

Transferred from other party

Date like‐kind property received was:


1

23

4 5

6

7

8 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29 30 31

32

33

34

35

36

37

CA8824 CA18A

2016 FIDUCIARY1/23/2017 8:17:13 AM


401

Form [CA18A] - California Like-Kind Exchanges

Overview

Use this form to complete federal Form 8824 with California amounts. The information on this form transfers automatically from federal Form 8824. It is important that any state-related differences are reported on this form.




402

California Like-Kind Exchanges Outside CaliforniaCA3840 (2016)

General Information

Schedule A - Properties Given Up and Received

Unit

FormProperty given up

Related party:

FinalAmended

Properties received (Information for Form 3840, Page 2)

Properties given up (Information for Form 3840, Page 2)

Include like‐kind exchange on Form 3840

NameIdentification number

Parcel number (if not entering Street address)


Street addressCity, State, zip code

City, State, zip codeStreet address

Property received (Description for Form 3840, Page 1)

Property given up (Description for Form 3840, Page 1)

County (if not entering Street address)


Tangible personal propertyReal property

Exchange involves:

Total California source deferred gain (Force)

1

23

4

5

6

7

8

9

10

11

12

13 14 15

16

17

18

19

20 21 22

23

24

25

26

27

CA3840 CA18B

2016 FIDUCIARY1/23/2017 8:17:13 AM


403

Form [CA18B] - California Like-Kind Exchanges Outside California

Overview

Use this form to enter like-kind exchange information for Form 3840.

For each unit of Form CA8824, ExacTax automatically creates a unit of Form CA3840. To report information from this exchange on Form 3840, mark the Include like-kind exchange on Form 3840 field.

ExacTax automatically includes information from federal Form 8824 on Form 3840, Parts I and II. Use this form to enter additional information to complete Form 3840, Pages 1 and 2.

Parcel number / County

ExacTax / 1041-CA prints the Parcel Number and County on Form 3840 only if the Street address field is left blank.


404

Prior Year Like-Kind Exchanges Outside CaliforniaCA3840PY (2016)

General Information

Schedule A - Properties Given Up and Received

Computation of Gain and Basis

Total California source deferred gain (Force)

Exchange involves:Real propertyTangible personal property

Total potential ordinary income under recapture rules

Liability given upExchange expenses



Property given up (Description for Form 3840, Page 1)

Property received (Description for Form 3840, Page 1)

Street addressCity, State, zip code

City, State, zip codeStreet address



Identification numberName

Cash received

Installment obligation received in like‐kind exchange

Liability assumedFair market value of non Section 1245 like‐kind property received

Adjusted basis of like‐kind property given upCash paid

Date given upDate property given up was actually transferredDate property received was identifiedDate property was actually receivedFair market value of other property given upAdjusted basis of other property given up

Fair market value of other (not like‐kind) property received


Properties given up (Information for Form 3840, Page 2)

Properties received (Information for Form 3840, Page 2)

AmendedFinal

Related party:

Property given up Form

Unit

Include like‐kind exchange on Form 3840

1

23

4

5

6

7

8

9

10

11

12

13 14 15

16

17

18

19

20 21 22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

CA3840PY CA18C

2016 FIDUCIARY1/23/2017 8:17:13 AM


405

Form [CA18C] - Prior Year Like-Kind Exchanges Outside California

Overview

Use this form to enter prior year like-kind exchange information for Form 3840. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Parcel number / County

ExacTax / 1041-CA prints the Parcel Number and County on Form 3840 only if the Street address field is left blank.


406

California Prior Year Installment SalesCAInstPY (2016)

General Information






State

Prior year payments receivedTotal ordinary income to recaptureOrdinary income previously recapturedBeginning of year, remaining gross profit (Used for passive loss and AMT adjustments)

Form

Unit

Description


Date acquiredDate soldGross sales price or insurance proceeds receivedMortgage and other debts the buyer assumedCost or other basisDepreciation allowed or allowableCommissions and other expenses of saleIncome recapture from Schedule D‐1Alternative minimum tax gain / loss adjustment

Prior year gross profit percentage (Force) (xxx.xxxx)Current year payments received

City, state, zip codeIdentification number

Related party:NameAddress


1

2

3 4

5 6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25 26 27

28

29

30

31

32

33

CAInstPY CA19

2016 FIDUCIARY1/23/2017 8:17:13 AM


407

Form [CA19] - California Prior Year Installment Sales

Overview

Use this form to enter installment sale information to complete Form 3805E. Amounts that appear on this form transfer automatically from federal Form InstPY. It is important that any state-related law differences are reported on this form.


408

California Prior Year Business Casualty and Theft LossCA4684PY (2016)

General Information



Date acquiredCost of replacement property


Cost or basisAccumulated depreciation


Gain reported on Schedule D‐1, Part III

Form

State

D

Description


Date acquired

AMT gain/loss adjustment

CBA

Unit



BCD


Replacement property descriptions: A

DCB

A B C D



Adjusted basis (Force)Postponed gain (Force)

1

2

3 4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

CA4684PY CA20

2016 FIDUCIARY1/23/2017 8:17:13 AM


409

Form [CA20] - California Prior Year Business Casualty and Theft Loss

Overview

Use this form to complete federal Form 4684, Page 2 with California amounts. The information on this form transfers automatically from federal Form 4684PY. It is important that any state-related differences are reported on this form.


410

California Business Casualty and Theft LossCA4684B (2016)

General Information



Cost of replacement propertyDate acquiredProperty acquired from related party



Asset number

Date acquired


Cost or basis

Insurance or other reimbursementFair market value before lossFair market value after lossAMT gain / loss adjustment


Casualty / theft number

Unit

Gain reported on Schedule D‐1, Part III

Form

State

C D

Description

BA

Property descriptions: A

DCB

BCD

AReplacement property descriptions:

A B DC


Holding period (Force) (1 = Short term, 2 = Long term)

1

2

3 4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

CA4684B CA21

2016 FIDUCIARY1/23/2017 8:17:13 AM


411

Form [CA21] - California Business Casualty and Theft Loss

Overview

Use this form to complete federal Form 4684, Page 2 with California amounts. The information on this form transfers automatically from federal Form 4684B. It is important that any state-related differences are reported on this form.




412

California Alternative Minimum TaxCAAMT (2016)

Adjustments and Preferences

Form 3510 - Credit for Prior Year Minimum Tax

Form 3510 Worksheet

Prior year Schedule P, Part III:

Capital gains:

Passive activities *Beneficiaries of other trusts or estates *

Line 10

Adjusted total income or loss ‐ Schedule P, Part I, line 1Net operating loss deduction ‐ Schedule P, Part I, line 2

Refund of property taxes *Depreciation adjustment (post '86) *

California Source

Qualified home mortgage interest *

Overall capital loss, Schedule D, Part III, line 10Adjusted tax‐exempt interest, Schedule P, Part II, line 2Total net gain included in income, Schedule P, Part II, line 3

From corpus to charity, Schedule P, Part II, line 4

Depletion *Intangible drilling costs

Certain loss limitations *Tax shelter farm activities

Schedule P, exclusion itemsForm 541, Schedule K‐1 exclusion itemsTotal available alternative minimum tax net operating loss deduction

Total distributions, Schedule P, Part II, line 11

From income to charity, Schedule P, Part II, line 5On minimum tax basis, Schedule P, Part II, line 6

Capital losses on minimum tax basis, Schedule P, Part II, line 7

*California qualified stock optionsOther adjustments *

Circulation and research expenditures *Mining costs *

California Law

Alternative minimum taxable income exclusionAdjusted tax‐exempt interest *

Line 9

Long‐term contracts *Amortization of pollution control facilitiesInstallment sales *Adjusted gain or loss (including incentive stock options) *

Tax‐exempt income included above, Schedule P, Part II, line 12

Alternative minimum tax net operating loss carryback

Fields with an * default to federal or calculated amount

Aggregate gross receipts (Force) (1 = Yes, 2 = No)

**

*

AMTI exclusion

ESBTEnter amounts from prior year Schedule P

Other ESBT

Allowable credits

Other

1

2 3

4 5

6 7

8 9

10 11

12 13

14 15

16 17

18 19

20 21

22 23

24 25

26 27

28 29

30 31

32 33

34 35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

CAAMT CA22

2016 FIDUCIARY1/23/2017 8:17:13 AM


413

Form [CA22] - California Alternative Minimum Tax

Overview

Use this form to complete Form 3510; Schedule P, Parts I and II; and the ESBT Form 3510 Worksheet.

Adjustments and Preferences

Use this section to enter California adjustments and preferences based on total income under California law and on California source income. ExacTax/1041-CA uses this information to calculate Schedule P, Parts I and II.

Note: If no amount is entered for an item in the California Source column, ExacTax/1041-CA uses the California law amount on Schedule P to calculate the California source AMT adjustment for Schedule K-1. For the fields marked with asterisks, if the California Law column is blank, ExacTax/1041-CA defaults to the amount reported at the federal level.

Aggregate gross receipts (Force)

ExacTax automatically calculates aggregate gross receipts for the adjustment required on Schedule P. Use this field to force the return to qualify or disqualify for the adjustments. For returns that meet the aggregate gross receipts test, ExacTax automatically excludes all adjustments and preferences related to trade or business income from Schedule P, excludes taxable income from business and rental activities (AMTI exclusion), and calculates Schedule P separately for beneficiaries.

Qualified home mortgage interest

Enter the California adjustment for mortgage interest if it differs from the amount reported at the federal level.

Refund of property taxes

ExacTax/1041-CA completes Schedule P, line 4d with information entered in the Other income field on federal Form Income with state use code 4. Enter an amount to override the calculation for line 4d.

Depreciation adjustment (post ’86)

The asset module calculates the post-1986 preference amount and allocates the amount attributable to passive activities to Schedule P, line 4n, and the balance to line 4e. ExacTax/1041-CA calculates line 4e from this and information entered on Forms CAC-2, CAF-2, CAK1-3, CAK1T-2, CARent-2, and CADepr. Use this field to override a different amount for line 4e.

Circulation and research expenditures

Enter the California adjustment for circulation and research expenditures if it differs from the amount reported at the federal level. This amount is combined with information entered on Forms CAC-2, CAF-2, CAK1-3, and CARent-2 and transfers to Schedule P, line 4f.

Mining costs

Enter the California adjustments for mining costs if they differ from those reported at the federal level. This amount is combined with information entered on Forms CAC-2, CAF-2, CAK1-3, and CARent-2 and transfers to Schedule P, line 4g.

Long-term contracts

Enter the California adjustment for long-term contracts if it differs from that reported at the federal level. This amount is combined with information entered on Form CAK1-3 and transfers to Schedule P, line 4h.


414

Amortization of pollution control facilities

Enter the California adjustment for pollution control facilities placed in service after 1986 if it differs from that reported at the federal level. This amount transfers to Schedule P, line 4i.

Installment sales

Enter the California adjustment for installment sales if it differs from that reported at the federal level. This amount transfers to Schedule P, line 4j.

Adjusted gain or loss (including incentive stock options)

ExacTax completes Schedule D on a regular tax basis, as well as on an alternative minimum tax basis. ExacTax reports the difference between the gains or loss calculated using these two methods on the bottom of the Schedule D - Recomputed for Alternative Minimum Tax Worksheet and on Schedule P, line 4k. Use this field to override the amount on line 4k.

Certain loss limitations

Enter the California adjustment for certain loss limitations if it differs from that reported at the federal level. This amount transfers to Schedule P, line 4l.

Tax shelter farm activities

Enter the California adjustment from tax shelter farm activities if it differs from that reported at the federal level. This amount is combined with information entered on Forms CAC-2, CAF-2, CAKI-3, and CARent-2 and transfers to Schedule P, line 4m.

Depletion

Enter the California adjustment for depletion if it differs from that reported at the federal level. This amount is combined with information entered on Forms CAC-2, CAF-2, CAK1-3, CAK1T-2, and CARent-2 and transfers to Schedule P, line 4p.

Intangible drilling costs

Enter the California adjustment for intangible drilling costs if it differs from that reported at the federal level. This amount is combined with information entered on Forms CAC-2, CAF-2, CAK1-3, and CARent-2 and transfers to Schedule P, line 4q.

California qualified stock options

Enter the California adjustment for the amount of compensation excluded from the employee’s gross income for regular tax from the exercise of California qualified stock options (CQSOs). This amount is the difference between the FMV of the corporation’s stock on the date the option is exercised and the amount the employee paid for the stock. This amount transfers to Schedule P, line 4r.

Alternative minimum tax net operating loss carryback

If this is an amended return, enter the amount of AMT net operating loss carryback from later years. If you leave this field blank, ExacTax/1041-CA uses the amount from the Net operating loss carryback (Force) field on Form CADed to calculate the current deduction.

Alternative minimum taxable income exclusion

Enter qualifying business income (eligible for exclusion from AMT).

Adjusted tax-exempt interest


415

ExacTax/1041-CA calculates the amount of adjusted tax-exempt interest on the Exempt Income and Expense Worksheet. Use this field to override (force) the calculated amount.

Form 3510 - Credit for Prior Year Minimum Tax

Use this section to enter Schedule P information from last year to calculate Form 3510 and the Form 3510 Worksheet for Electing Small Business Trusts.

Prior year Schedule P, Part III: Line 9

Enter the amount of regular tax before credits and section 644 taxes as reported on last year’s Schedule P. This amount transfers to Form 3510, line 12. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

If the return is an electing small business trust with non-S Corporation income, enter the prior year exclusion items from the S Corporation part of the trust in the ESBT field and enter the prior year exclusion items from the remainder of the trust in the Other field.

Prior year Schedule P, Part III: Line 10

Enter the amount of alternative minimum tax from last year’s Schedule P. This amount transfers to Form 3510, line 28. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

If the return is an electing small business trust with non-S Corporation income, enter the prior year exclusion items from the S Corporation part of the trust in the ESBT field and enter the prior year exclusion items from the remainder of the trust in the Other field.

Allowable credits

If the return is an electing small business trust with non-S Corporation income, enter the portion of current year allowable credits that are from the S Corporation part of the trust. ExacTax/1041-CA prints this amount on the Form 3510 Worksheet for Electing Small Business Trusts, line 34 and excludes it from Form 3510, line 34.

Form 3510 Worksheet

Use this section to enter information from last year’s Schedule P to calculate the Form 3510 Worksheet and the Form 3510 Worksheet for Electing Small Business Trusts.

Schedule P, exclusion items

Enter the amounts considered exclusion items reported on prior year Schedule P, Part I. This amount is included on the Form 3510 Worksheet, line 5. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Form 541, Schedule K-1 exclusion items

Enter the amount reported on all prior year Schedule K-1s, line 9 received from other trusts. This amount is included on the Form 3510 Worksheet, line 5. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.


416

California Accumulation DistributionCAJ (2016)

Schedule J

Tax

Enter the earliest year first. Do not information prior to 1969 or leave blank columns between years.

Tax‐exempt interestTotal net capital gainNet gain distributedTaxable income

Throwback year (xxxx)Distributable net incomeDistributions madePrior accumulation distribution

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

CAJ CA23

2016 FIDUCIARY1/23/2017 8:17:13 AM


417

Form [CA23] - California Accumulation Distribution

Overview

Use this form to complete Schedule J.

Do not delete input forms for which there is no accumulated income. These are needed so that Schedule J, Page 1 calculates the correct accumulation distribution for the current year.

Schedule J

Use this section to enter information about accumulation distributions for the calculation of throwback taxes.

Notes

If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Information on this form does not transfer from ExacTax/1041.

ExacTax/1041-CA completes the Schedule J only if the Subject to throwback rules field on federal Form Allocate is marked. If the trust is required to complete the state Schedule J but not the federal Schedule J, mark that field and delete all units of federal Form J. Similarly, all units of this form can be deleted to complete the federal schedule but not the state.

Total net capital gain

Enter the total net capital gain before any distribution to beneficiaries. ExacTax/1041-CA automatically calculates the net capital gain distributed to the beneficiaries from the amounts entered in this field and the Net gain distributed field.

Note: The federal Schedule J shows only the trust portion of net capital gains. The California Schedule J shows total capital gains for both the beneficiary and trust. For ExacTax/1041-CA to properly calculate the two components of the total capital gains, the Total net capital gain field must be completed.


418

California CreditsCACr (2016)

Schedule P


Election to Increase Basis of Credit Property

172 ‐ Low‐income housing (Post‐1989)

176 ‐ Enterprise zone hiring (FTB 3805Z) 176 ‐ Enterprise zone sales or use tax (FTB 3805Z)183 ‐ Research (FTB 3523)

189 ‐ Employer child care program (FTB 3540)

198 ‐ Local agency military base recovery area (LAMBRA) (FTB 3807) 203 ‐ Enhanced oil recovery (FTB 3546) 204 ‐ Donated agricultural products transportation (FTB 3547) 205 ‐ Disabled access (FTB 3548)

211 ‐ Manufacturing enhancement area (MEA) hiring (FTB 3808)

172 ‐ Low‐income housing (Pre‐1990)

190 ‐ Employer child care contribution (FTB 3540)

185 ‐ Orphan drug (FTB 3540) (Suspended amounts must be entered in the dialog)

210 ‐ Targeted tax area (TTA) hiring / sales or use tax (FTB 3809)

Name of activity disposed (Force)

Fields with * are available for allocation to beneficiaries Current Year Carryover

Credit property desc (Force)Unallowed credit that reduced the basis in the property (Force)

**

**

**

*

**

CarryoverCurrent Year

Decreased basis property (Pre‐1990)Decreased basis property (Post‐1989)

*234 ‐ New employment (FTB 3554)235 ‐ College access (FTB 3592)

233 ‐ California competes (FTB 3531)223 ‐ Motion Picture and Television (FTB 3541) *

*

*

*237 ‐ New motion picture and television production (FTB 3541)

220 ‐ New jobs (FTB 3540)

1 2

3

4 5

6 7

8

9

10 11

12 13

14 15

16 17

18 19

20 21

22

23 24

25 26

27 28

29 30

31

33 34

35 36

37

38

39

40

41

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419

Form [CA24] - California Credits

Overview

Use this form to complete Form 541, Page 1; Schedule P, Page 3; Form 3521; and Form 3801-CR, Page 2.

Note: ExacTax/1041-CA prints Schedule P if any of the following is true:

The alternative minimum tax is due.

An income distribution deduction is taken.

Credits are limited on Schedule P.

More than one credit is claimed.

Schedule P

Use this section to enter credit information for Form 541, Page 1 or Schedule P, Page 3.

176 - Enterprise zone hiring (FTB 3805Z) / … / 237 - New motion picture and television production (FTB 3541): Current Year

Enter the current year amount for the applicable credits. These amounts may be allocated between the trust and beneficiaries based on information entered on federal Forms Allocate or in View > Beneficiary Information > Federal tab.

176 - Enterprise zone hiring (FTB 3805Z) / … / 237 - New motion picture and television production (FTB 3541): Carryover

Enter the Schedule P carryovers for the applicable credits. If ExacTax/1041-CA was used in the prior year, the carryover amount proformas automatically.

183 - Research (FTB 3523): Current Year

Enter the current year credit amount, the suspended amount for passive activities, and the activity for the research credit. These amounts may be allocated between the trust and beneficiaries based on information entered on federal Form Allocate or in View > Beneficiary Information > Federal tab. If ExacTax/1041-CA was used in the prior year, the suspended amount proformas automatically.

185 - Orphan drug (FTB 3540)

Enter the suspended amount for passive activities and the activity for the orphan drug credit. This amount may be allocated between the trust and beneficiaries based on information entered on federal Form Allocate or in View > Beneficiary Information > Federal tab. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.


Use this section to enter information for the calculation of Form 3521.

172 - Low-income housing (Pre-1990): Current Year

Enter the current year credit amount, the suspended amount for passive activities, and the activity for the low-income housing credit. These amounts may be allocated to beneficiaries only on a grantor trust. If ExacTax/1041-CA was used in the prior year, the suspended amount proformas automatically.


420

172 - Low-income housing (Post-1989): Carryover

Enter the prior year Schedule P carryover for the low-income housing credit. If ExacTax/1041-CA was used in the prior year, the carryover proformas automatically.

Decreased basis property

Enter the date placed in service, BIN number, eligible basis, low-income portion, applicable percentage, and the activity for the low-income housing credit. ExacTax/1041-CA automatically completes the Qualified Basis and Recomputed Credit columns. These amounts may be allocated to beneficiaries only on a grantor trust. Enter any suspended amounts in the 172 - Low-income housing fields.

Election to Increase Basis of Credit Property

Use this section to enter information for the calculation of Form 3801-CR, Part VI, Election to Increase Basis of Credit Property.

Name of activity disposed (Force) / … / Unallowed credit that reduced the basis in the property (Force)

If the estate or trust disposed of its entire interest in a passive activity or former passive activity in a fully taxable transaction and elects to increase the basis of credit property used in that activity by the unallowed credit, enter the required information. If these fields are blank, ExacTax/1041-CA defaults to the information entered on federal Form OthCr.


421

California Credit for Other State Income Taxes PaidCACr-2 (2016)

Other State Tax Credit

Name

Adjusted gross income taxable in other stateTaxes paid to other stateDouble‐taxed income

State 12

3

4

5

CACr-2 CA26

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422

Form [CA26] - California Credit for Other State Income Taxes Paid

Overview

Use this form to complete Schedule S, Other State Tax Credit.

Other State Tax Credit

Use this section to enter information about taxes paid to other states.

State

Enter the standard two-letter code of the state to which taxes are paid. The fieldview contains a list of selections.

Name

When data is entered in the State field, this field is completed automatically. Modify this field by changing the entry in the State field.

Double-taxed income

Use the field to enter the description, amount taxable by California, and amount taxable by the other state.


423

California Section 179 Pass-Through SaleCAK1Sale (2016)

General Information

Section 179 Sale Information

Form 3805E - Current Year Installment Sales

Form 3805E - Related Party Installment Sale Information

Date soldDate acquired

Prior year gross profit percentage (Force)

Prior year payments receivedIncome recapture from Form 4797Beginning of year, remaining gross profit


Gross sales price or insurance proceeds received

Alternative minimum tax gain / loss adjustment

Description

Disposition due to casualty / theft (Part III assets only: used to determine gains to carry to Form 4684, Section B, line 33)

Depreciation allowed or allowable excluding section 179

Unit

Form


Total section 179 expense deduction


Commissions and other expenses of sale



Cost or other basis

Sale is a prior year installment


State

NameAddressCity, state, zip codeIdentification number

Related party:


1

2

3 4

5 6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27 28 29

30

31

32

33

34

35

36

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424

Form [CA27] - California Section 179 Pass-Through Sale

Overview

Use this form to enter asset sale information for Schedule D-1 and Form 3805E. Amounts that appear on Form CAK1Sale transfer automatically from federal Form K1Sale. It is important that any state-related law differences and details are reported on Form CAK1Sale. Please note that Form CAIncome is used to enter additional information needed to calculate Schedule D-1.


425

California Personal Casualty and Theft LossCA4684P (2016)

Personal Use Properties


Date acquired

B C D

State postal code

Date of casualty or theftCost or basisInsurance or other reimbursementFair market value before lossFair market value after loss

A

BCD


Disaster loss1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

CA4684P CA28

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426

Form [CA28] - California Personal Casualty and Theft Loss

Overview

Use this form to complete federal Form 4684, Page 1 with California amounts. The information on this form transfers automatically from federal Form 4684P. It is important that any state-related differences are reported on this form.


427

CA Accumulations and NOL CarryoversCACO

6FCACO 01 11/03/16 FIDUCIARY

Overflow #

CA29

2016

ExacTax, Inc.

CA29

LOSSYEAR

NOL *TYPE

DISASTERCODE **

BUSINESSCODE

INITIALLOSS

AMT INITIALLOSS

REGULARC/O

AMTC/O# NEW BUS

YEARS

[§ 33] NOL and disaster information

EIN OFPASSTHROUGH#

[§34] Pass-through NOL detailYEAR OF

LOSSDISASTERCODE **

TYPE OFNOL *

LOSS CARRYOVERFROM LAST YEAR

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term capital gains/losses . . . . . . . . . . . . . . . . .Long-term capital gains/losses . . . . . . . . . . . . . . . . .U.S. income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

California

Other Rental income . . . . . . . . . . . . . . . . . . . . . . . .

Tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . .

California Law

Business income. . . . . . . . . . . . . . . . . . . . . . . . . . . .Rental real estate income . . . . . . . . . . . . . . . . . . . . .

Federal

[11][12][13][14][15][16][17]

[1][2][3][4][5][6][7][8] [18]

[19]Other nontaxable income. . . . . . . . . . . . . . . . . . . . . .Alternative minimum tax adjustment . . . . . . . . . . . . .

[9][20][10]

Form 541-B, Part II - Accumulation Schedule

Net Operating Loss

Other California CarryoversCACO-2

Short-term . . . . . . . . .Long-term . . . . . . . . .


[3][4]

[14][15][16][17]

[1][2]

[18]

Capital LossesOther CA SourceOther CA Law

[7][8]

[5][6]

Section 1231 Losses


[9]Other CA SourceOther CA Law

[10][11][12][13]

[24][25][26][27][28]

[19][20][21][22][23]

Investment Interest

Form 3510

[39]Alternative Minimun TaxRegular

[40][38][37]

[42]ESBTOther

[41]

2011

Form 3526 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Electing small business trust (ESBT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mininum tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nol & Disaster Information

* Type of NOL

1 = Disaster2 = General3 = New Business4 = Small Business

Passthrough NOL Detail

* Type of NOL

1 = Disaster2 = General3 = New Business4 = Small Business

** Disaster Code

See instructions

** Disaster Code

See instructions

20122013

2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [39][38]2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [37][36]

Elect to waive carryback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [35]Prior year taxable income Alternative Mimimum TaxRegular

20142015


428

Form [CA29] - California Accumulations and NOL Carryovers

Overview

Use this form to enter information to complete Form 541-B, Form 3805V, the Total Source and State Source Carryover Report, and Schedule K-1 for charitable remainder trusts.

Form 541-B, Part III - Accumulation Schedule

Use this section to enter information to complete Form 541-B, the Carryover Reports - Total Source and State Source and Schedule K-1 for charitable remainder trusts.

Interest income / … / Alternative minimum tax adjustment

Enter the income of a section 664 trust that remains undistributed from prior tax years. For each income amount, if you leave the California Law or California column amount blank, ExacTax/1041-CA uses the amount from the Federal column to calculate state source income available for distribution and the carryover amounts available for distribution in future years on the Total Source and State Source Carryover Reports. If ExacTax/1041-CA was used to calculate the client’s prior-year return, this information proformas automatically.

Tax-exempt income

Enter the income of a section 664 trust that remains undistributed from prior tax years. If the Tax-exempt income field is left blank, ExacTax/1041-CA treats the amount in the Total column as out-of-state income when calculating the adjustment for beneficiaries on Schedule K-1 and the carryover amounts on the California Carryover Report - State Source. If ExacTax/1041-CA was used to calculate the client’s prior-year return, this information proformas automatically.

Net Operating Loss

Use this section to enter information for net operating loss deductions.

Net operating loss carryovers and allocation of current year loss

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, enter all types of NOL carryovers, and current-year eligible small business loss, new business loss, and disaster information in this field. Any current-year loss not identified as qualifying for special treatment as an eligible small business, new business, or disaster defaults to general NOL treatment. ExacTax uses this information to calculate Form 3805V.

The following information describes how the entries in the attached field affect the calculation of the tax return.

Loss Year: Enter the year of original loss. Choose an entry from the fieldview or enter the appropriate year. This entry indicates the section of Form 3805V, Part III to include the amount.

NOL Type: Enter the type of NOL. From the fieldview available, choose the type of NOL. This entry prints in Form 3805V, Part III, column C.

Disaster Code: For entries with code 1, Disaster Loss in the NOL Type column, enter the disaster code from the instructions for Form 3805V. A code other than those available in the fieldview may be entered if the disaster is assigned a code after the final release of ExacTax.

Business Code: For entries with code 3 or 4 for New Business and Eligible Small Business Losses in the NOL Type column, enter the SIC code from the Form 3805V instructions. The SIC code prints in Form 3805V, Part III, Column B.


429

New Business Years: For entries with code 3, New Business in the NOL Type column, enter the number of years that the new business loss may be carried forward for losses incurred prior to 2000.

Initial Loss: Enter the initial loss amount. This amount prints in Form 3805V, Part III, Column D.

Regular C/O: Enter the portion of the initial loss carried forward from the prior year. This amount is included in Form 3805V, Part III, Column E.

AMT C/O: Enter the portion of the initial loss carried forward from the prior year. This amount is included on Schedule P, line 7a.

Pass-through NOL detail

Enter information about losses from a pass-through entity. This information prints in a statement with Form 3805V, Page 3. If the return is electronically filed, the EIN of the pass-through entity is included in the electronic file with the net operating loss information from Form 3805V, Page 3, Part III, line 2 or line 4, as appropriate.

Elect to waive carryback

If you enter X, ExacTax/1041-CA prints the entire current year net operating loss on Form 3805V, Part III, line 4 and does not complete Form 3805V, Part IV.

Prior year taxable income

Enter the prior year taxable income to complete Form 3805V, Page 4, Part IV, lines 1 and 2.

Capital Losses

Use this section to enter information for Schedule D, the Schedule D - Recomputed for AMT Worksheet, the ESBT / QSST Worksheet, and the ESBT / QSST Schedule D Worksheet.

Short-term / Long-term: Regular tax: Other California Law / ESBT California Law

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, enter the amount of capital loss carryover from the prior-year Schedule D if the amount differs from the federal amount. If the client is an electing small business trust with non-S Corporation income, enter the capital loss carryovers from the S Corporation part of the trust in the ESBT California Law fields and enter the capital loss carryovers from the remainder of the trust in the Non-ESBT California Law fields. If these fields are blank, ExacTax/1041-CA defaults to the federal amount.

Note: If you select ESBT (Return has only S corporation income) in the Type of entity field on federal Form 1041, ExacTax/1041-CA completes Schedule D with amounts from the S Corporation. In this case, enter the adjustment in the Non-ESBT field.

Short-term / Long-term: Alternative minimum tax: Other California Law

Enter the AMT capital loss carryover amount if it differs from the regular tax amount. UltraTax 1041-CA prints these amounts on the California Schedule D - Recomputed for AMT Worksheet, line 9. If there is a capital loss carryover for regular tax but not for AMT, enter 0 (zero) in this field. If you leave this field blank, ExacTax uses the regular tax amount on line 7.

Short-term / Long-term: Other California Source / ESBT California Source

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, enter the amount of capital loss carryover from the prior-year Schedule D. If the client is an electing small business trust with non-S corporation income, enter the capital loss carryovers from the S corporation part of the trust in the ESBT California Source fields and enter the capital loss carryovers from the remainder of the trust in the Other California Source fields.


430

Note: If you select ESBT (Return has only S corporation income) in the Type of entity field on federal Form 1041, ExacTax/1041-CA calculates Schedule D with amounts from the S Corporation. In this case, enter the adjustment in the Other California Source field.

Short-term / Long-term: Alternative minimum tax: Other California Source / ESBT California Source

Enter the California source AMT capital loss carryover amount if it differs from the regular tax amount. If you enter amounts in these fields, ExacTax includes the difference between this amount and the regular tax amount in the calculation of the instate source AMT adjustment. If there is a capital loss carryover for regular tax but not for AMT, enter 0 (zero) in this field. If you leave this field blank, ExacTax assumes that there is no difference between the AMT amount and the regular amount.

Short-term / Long-term: Alternative minimum tax: ESBT California Law

Enter the ESBT AMT capital loss carryover amount if it differs from the regular tax amount. If you enter amounts in these fields, ExacTax includes the difference between this amount and the regular tax amount in the calculation of the ESBT AMT adjustment. If there is a capital loss carryover for regular tax but not for AMT, enter 0 (zero) in this field. If you leave this field blank, ExacTax assumes that there is no difference between the AMT amount and the regular amount.

Section 1231 Losses

Use this section to enter section 1231 loss carryovers amounts for Schedule D-1. If these fields are blank, ExacTax/1041-CA defaults to federal amounts for these items.

2011 /… / 2015

If ExacTax/1041-CA was used in the prior year, this information proformas automatically. Otherwise, enter the section 1231 loss carryover information for the years indicated if the amounts differ from the federal amounts. ExacTax/1041-CA uses this information in the event of a section 1231 gain in the current year.

If the client is an electing small business trust with non-S corporation income, enter the section 1231 loss carryovers from the S Corporation part of the trust in the ESBT Total and ESBT California Source fields and enter the section 1231 loss carryovers from the remainder of the trust in the California Law and California Source fields.

If these fields are blank, ExacTax/1041-CA defaults to the federal amount.

Note: If you select ESBT (Return has only S corporation income) in the Type of entity field on federal Form 1041, ExacTax/1041-CA completes Schedule D-1 with amounts from the S Corporation. In this case, enter the adjustment in the Other field.

Investment Interest


Form 3526 / Electing small business trust (ESBT)

Enter the investment interest carryover for regular and AMT tax purposes if the California amounts differ from the federal amounts. If these fields are blank, ExacTax/1041-CA defaults to the amounts entered on federal Form CO-2. If ExacTax/1041-CA was used in the prior year, this information proformas automatically.

Form 3510



431

Minimum tax credit: Other / ESBT

If you used ExacTax/1041-CA in the prior year, this information proformas automatically. Otherwise, enter the amount of last year’s minimum tax credit carryover.

If the client is an ESBT with non-S Corporation income, enter the minimum tax credit carryover from the S Corporation part of the trust in the ESBT field and enter the minimum tax credit carryover from the remainder of the trust in the Other field.

Note: If you select ESBT (Return has only S Corporation income) in the Type of entity field on federal Form 1041, ExacTax completes Form 3510 with information from the S Corporation. In this case, enter the minimum tax credit carryover in the Other field.


432

California Electronic FilingCAELF (2016)

General Information


Suppress Form 541 electronic file when filing federal return or extension electronically

Print Form 8879‐FID (Prior to creating the electronic file)

Signature date (If different from federal)

Form 8453‐FID or Form 8879‐FID has already been signed and returned (Links to Utilities > Electronic Filing Status)

Extension signature date (If different from federal)

Form 8453‐FID(PMT) or Form 8879(PMT) has already been signed and returned (for extension)

1

2

3

4

5

6

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433

Form [CA30] - California Electronic Filing

Overview

Use this form to suppress the electronic file for the state return and to enter signature information.

General Information

Use this section to suppress the California electronic file when filing the federal return electronically and to indicate that the signature document has already been signed.

Suppress Form 541 electronic file when filing federal return or extension electronically

Form 8453-FID or Form 8879-FID has already been signed and returned

Enter X if Form 8453-FID or Form 8879-FID has already been signed by the fiduciary or an authorized officer of the return. ExacTax uses this information to determine what information appears in the filing instructions. ExacTax automatically transfers the selection entered here to the Signature Document field in the Utilities > Electronic Filing Status dialog when you create the electronic file.

Notes

By default, Form 8453-FID or Form 8879-FID prints with the tax return regardless of this field. ExacTax enters X in the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options.

ExacTax suppresses the printing of Form 8453-FID or Form 8879-FID if you have received a signed copy of the form and the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options is blank.

If you modify the selection in the Signature Document field in the Electronic Filing Status dialog, the selection transfers to this field. In addition, ExacTax overwrites any changes you make in the Electronic Filing Status dialog to match the selection in this field if you re-create the electronic file.

Form 8453-FID(PMT) or Form 8879-FID(PMT) has already been signed and returned

Enter X if Form 8453-FID (PMT) or Form 8879 (PMT) has already been signed by the fiduciary or an authorized officer of the return. ExacTax uses this information to determine what information appears in the filing instructions.

Notes

By default, Form 8453-FID (PMT) or Form 8879 (PMT) prints with the tax return regardless of this field. ExacTax enters X in the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options.

ExacTax suppresses the printing of Form 8453-FID (PMT) or Form 8879 (PMT) if you have received a signed copy of the form and the Always print Form 8879 (etc.), regardless of signature status field in Setup > Office Configuration > Print Options is blank.


Use this section to complete Form 8879-FID for electronically filed returns.


434

Signature date

Enter the date Form 8879-FID was signed by the fiduciary. If this field is blank, ExacTax uses the date entered in the Signature date field in federal Form ELF, or the option selected in Setup > Office Configuration > Print Options, for the When Form 8879 (etc.) signature date(s) (Preparer and/or Client) are not entered field.

Print Form 8879-FID

Enter X to print Form 8879-FID without completing the PIN information or the Signature date field.


435

California Electronic Funds WithdrawalCABank (2016)

Fiduciary Income Tax, Form 541

Fiduciary Estimates, Form 541-ES

Account Information

Non‐US financial institution (International ACH transaction)

Type of account (1 = Checking, 2 = Savings)

Routing transit numberName of financial institutionDepositor account number

Requested payment date, amended (Mandatory if using the electronic funds withdrawal method)

Electronic funds withdrawal for balance due returns:Requested payment date, original (Mandatory if using the electronic funds withdrawal method)

Available only when filing the tax return electronically

Due Date Other

Payment Date

All

2nd3rd4th

Electronic funds withdrawal requested payment date(s) for estimated tax: (Mandatory to create estimate electronic files)

1st

Available only when filing the tax return electronically

Requested payment date (Mandatory if using the electronic funds withdrawal method)

Electronic funds withdrawal for extension:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

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436

Form [CA31] - California Electronic Funds Withdrawal

Overview

Use this form to enter financial institution information required to authorize electronic funds withdrawal for a balance due for electronically filed returns as allowed by California.

Fiduciary Income Tax, Form 541

Use this section to enter payment dates for electronic funds withdrawal of a balance due.

Requested payment date, original

Enter a date that is on or before the due date of the return to authorize automatic electronic funds withdrawal for a payment of a balance due return. If this field is blank, ExacTax/1041-CA does not generate a payment record.

Requested payment date, amended

For returns transmitted after the due date, the payment date must be the date the return is transmitted. If this field is blank, ExacTax/1041-CA does not generate a payment record.

Electronic funds withdrawal for extension: Requested payment date

Enter a date that is on or before the due date of the extension to authorize automatic electronic funds withdrawal for payment. If this field is blank, ExacTax/1041-CA does not generate a payment record.

Fiduciary Estimates, Form 541-ES

Use this section to enter electronic funds withdrawal information for estimated tax payments.

Electronic funds withdrawal requested payment date(s) for estimated tax: Payment Date: All

Enter X in the All field to generate an electronic funds withdrawal payment in the 1041 California electronic file for all applicable Form 541-ES vouchers with an amount due. Override the dates as necessary. Enter estimate information on Form CAEst.

Electronic funds withdrawal requested payment date(s) for estimated tax: Payment Date: Due Date: 1st / … / 4th

Enter X in an individual field to generate an electronic funds withdrawal payment in the 1041 California electronic file for the applicable Form 541-ES voucher with an amount due. ExacTax/1041-CA enters the estimate due date in the corresponding field. Override the date as necessary. Enter estimate information on Form CAEst.

Account Information

ExacTax/1041-CA uses this information to complete an electronic funds withdrawal for an electronically filed return with a balance due.

Routing transit number / … / Type of account

ExacTax/1041-CA transfers the financial institution information entered in federal Form Bank for electronic funds withdrawal. To use a different account for the California return, enter the financial institution information in this form.


437

California Resident & Nonresident Withholding Tax StatementCA592B (2016)

Part I - Withholding agent

Part II - Recipient

Part III - Type of Income Subject to Withholding

Part IV - Tax Withheld

Foreign postal code

SOS number

SOS number

Total backup withholding

Elective withholding

California corporation number

Federal employer identification number

Total California tax withheld (Amount entered here is NOT included in the calculation of return)

Distributions to domestic (U.S.) nonresident partners / members

Allocations to foreign (non‐U.S.) nonresident partners / members

Rents or royalties

Payments to independent contractors

Total amount subject to withholding

Other (Describe)

Name

Social security number

City, state, zip code

Trust distributions

Estate distributions

Daytime telephone number


Federal employer identification number

Enter information only if different from federal Screen 1041

Name

Street

Foreign country code / descriptionForeign province / county


Foreign province / countyForeign country code / description

StreetCity, state, zip code

Foreign postal code

Elective withholding / Indian tribe

All fields are used for electronic filing of Form 541 ONLY.

Amounts entered here are NOT included in the calculation of the return

Enter amount of withholding used as a payment for the estate or trust on federal Screen 1099R, federal Screen Income, federal Screen K1‐3, federal Screen PayExt, federal Screen W2, or federal Screen W2G.

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Form [CA32] - California Resident & Nonresident Withholding Tax Statement

Overview

Use Form CA592B to enter data from Form 592-B, Resident and Nonresident Withholding Tax Statement. This information is included in an electronically filed return as required by the Franchise Tax Board. Information entered on this form is not included in the calculation of the return. State withholding must be entered on federal Forms 1099R, Deduct, Income, K1-3, PayExt, W2, or W2G to print on federal Form 1041, line 11, and on Form 541, lines 29 and 31.

For returns filed electronically, amounts reported as real estate and other withholding on Form 541 require supplemental data entry in Forms CA593 and CA592B. The amount on Form 541, line 31 must equal the sum of the amounts entered in Form CA592B in the Total California tax withheld and Total backup withholding fields and Form CA593 in the Amount withheld from this seller field. To move an amount from Form 541, line 29 to line 31, enter the amount in the Withholding to reclassify field on Form CAPay.

If withholding is entirely allocated to beneficiaries so there is no amount on Form 541, line 31, leave Forms CA593 and CA592B blank.

Note: This form is applicable only to electronically filed returns.

Name / … / Foreign postal code

Enter data from Form 592-B, Part II. If these fields are left blank, ExacTax/1041-CA uses the information from federal Form 1041.


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California Real Estate Withholding Tax StatementCA593 (2016)

Part I - Withholding Agent

Part II - Seller or Transferor

Part III - Escrow or Exchange Information

Preparer Information


Title

Property city, state, zip code

Escrow business name

Parcel number

Business name

Withholding calculationType of transaction

Spouse's / RDP's name

Amount withheld from this seller (Amount entered here is NOT included in calculation of return)

All fields are used for electronic filing purposes ONLY.

Name

Date of transfer, exchange completion, exchange failure, or installment payment

Property address

Escrow or Exchange Number


City, state, zip codeAddress

Name


Telephone number

Spouse's / RDP's social security number

Foreign province / countyForeign postal codeSocial security numberEmployer identification number

SOS number

Enter name, address, and TIN only if different from federal Screen 1041. Enter property address or parcel number, but not both.

Name



City, state, zip codeStreet


Foreign postal codeForeign province / county

SOS number

County

Amended

Enter amount of withholding used as a payment for the estate or trust on federal Screen Deduct.

Enter information from signature area of Form 593.

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Form [CA33] - California Real Estate Withholding Tax Statement

Overview

Use Form CA593 to enter data from Form 593, Resident and Nonresident Withholding Tax Statement. This information is included in an electronically filed return as required by the Franchise Tax Board. Information entered on this form is not included in the calculation of the return. California real estate withholding must be entered in the Taxes, not entered elsewhere field on federal Form Deduct, with a Tax Type code of 4 and a Postal Code of CA to print on federal Form 1041, line 11, and on Form 541, line 31.

For returns filed electronically, amounts reported as real estate and other withholding on Form 541 require supplemental data entry in Forms CA593 and CA592B. The amount on Form 541, line 31 must equal the sum of the amounts entered in Form CA592B in the Total California tax withheld and Total backup withholding fields and Form CA593 in the Amount withheld from this seller field. To move an amount from Form 541, line 29 to line 31, enter the amount in the Withholding to reclassify field on Form CAPay.

If withholding is entirely allocated to beneficiaries so there is no amount on Form 541, line 31, leave Forms CA593 and CA592B blank.

Note: This form is applicable only to electronically filed returns.

Name / … / SOS number

Enter the seller or transferor information. If these fields are left blank, ExacTax/1041-CA uses the information from federal Form 1041.

Property address / … / County

Enter the property address information. ExacTax/1041-CA uses the parcel number and county only if there is no street address of the property.


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California Change of AddressCACOA (2016)

Address Information

Old mailing address:


New mailing address:

New business location:

Print fiduciary phone number on Form 3533‐BTitle of owner, officer or representative

Treat mailing address on federal Screen 1041 as: 1 = New mailing address

2 = Old mailing address

3 = New business location

4 = New mailing address and new business location




Old additional information

New additional information

New business additional information

Street address

Street address

Street addressCity, state, zip code


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Form [CA34] - California Change of Address

Overview

Use this form to report a change of address.

Address Information

If the address Information for California is different from the federal information, enter the state information in these fields.


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California Revenue Procedure 2009-20 (Ponzi)CAPonzi (2016)



State

Casualty or Theft number

Occurrence description

Initial investmentSubsequent investmentsIncome reported on prior years tax returns Withdrawals for all years

Actual recoveryPotential insurance / SIPC recovery

Does the taxpayer intend to pursue third‐party recovery? ( 1 = Yes, 2 = No)

Name of responsible individual or entity

AddressCity, state, zip code

Taxpayer identification number

Tax years and dates filed for returns that do not satisfy the conditions of Revenue Procedure 2009‐20


Foreign postal codeForeign province / countyForeign country code / description

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Form [CA35] - California Revenue Procedure 2009-20 (Ponzi)

Overview

Use this form to complete federal Form 4684, Page 3 with California amounts. The information on this form transfers automatically from federal Form Ponzi. It is important that any state-related differences are reported on this form.


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California Witholding PaymentsCAWHPmt (2016)


Previous Payments

4th payment

Distributive Income

3rd payment2nd payment1st payment

Specific payments if unequal or not timely:Total, or:

Withholding

Withheld by another entity and being distributed (Force)

Filing Form 592 electronically (Only prints payment voucher)

Agent's daytime telephone number (Defaults to federal)

Prior payments not previously distributed

AmendedPrior year distribution

Withheld by another entity and taken on Form 541 (Force)Agent's name (Defaults to fiduciary)

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Form [CA36] - California Witholding Payments

Overview

Use this form to complete Forms 592 and 592-V for the current calendar year

Note: Quarterly Forms 592 and 592-V for the next year are available in ExacTax/1041-CA as noncalculating forms.

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Use this section to enter general information for Forms 592 and 592-V.

Withheld by another entity and being distributed (Force)

ExacTax/1041-CA calculates Form 592, line 5 using amounts entered in the Pass-through withholding field in the California tab of View > Beneficiary Information. If necessary, enter an amount to force line 5.

Note: Pass-through withholding entered in the State income tax withheld field of federal Form K1-3 and allocated to California prints on Form 541, line 29. UltraTax prints a statement with Form 592, line 5 that shows the total of the amount taken on line 5 and on Form 541, line 29. To override the total amount in this statement, enter an amount in the Withheld by another entity and taken on Form 541 (Force) field on this form.

Withheld by another entity and taken on Form 541 (Force)

ExacTax/1041-CA prints a statement with Form 592, line 5 using amounts entered in the State income tax withheld field of federal Form K1-3 and allocated to California. If necessary, enter an amount to force the total and Form 541amounts in this statement.

Agent’s name

In the Signature section of Form 592, ExacTax/1041-CA prints the fiduciary name entered on federal Form 1041. Enter the agent’s name if it is different from the fiduciary name.

Agent’s daytime telephone number

In the Signature section of Form 592, ExacTax/1041-CA prints the daytime telephone number entered on federal Form 1041. Enter the agent’s telephone number if it is different from the fiduciary’s daytime telephone number.

Filing Form 592 electronically

Enter X if Form 592 is filed using the FTB’s Secure Web Internet File Transfer (SWIFT). If this field is marked, ExacTax/1041-CA prints Form 592-V but not Form 592.

Previous Payments

Use this section to enter withholding payments made with Form 592 in the first three quarters of the year.

Distributive income

To calculate the total income amount on Form 592, Page 2, Schedule of Payees, ExacTax/1041-CA subtracts amounts entered in these fields from the amounts on each beneficiary’s Form 592-B, line 1. If amounts are entered in the face fields, they are divided equally among the beneficiaries.


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Note: Enter amounts in either the Total, or field or the fields for the individual quarters, but not both. If amounts are entered in the individual quarter fields, any amount in the Total, or field is ignored.

Withholding

To calculate the amount of tax withheld on Form 592, Page 2, Schedule of Payees, ExacTax/1041-CA subtracts amounts entered in these fields from the amounts on each beneficiary’s Form 592-B, lines 2 and 3. If amounts are entered in the face fields, they are divided equally among the beneficiaries.

Note: Enter amounts in either the Total, or field or the fields for the individual quarters, but not both. If amounts are entered in the individual quarter fields, any amount in the Total, or field is ignored.


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Appendix A - Cross Reference

Federal - Sort by form number 2016

Form # 1041 FORM DESCRIPTION

1 Estate and Trust Information 2 Client Contact Information, Elections and Filing Instructions 3 Allocation Information 4 Electronic Filing - General Information 5 Penalties 6 Notice Concerning Fiduciary Relationship

7A Estimates 7B Payments and Extensions 8 State Payments 9 Bank Information

10A Beneficiary and Grantor Information 10B Partial Grantor Information 20 Wage 21 Gambling winning 23 1099-R Retirement Information 25 Miscellaneous Income - Detail

26A Interest Income and Seller-Financed 26B Dividend Income and Other Income 27A Schedule D - Capital Gains and Losses 27B Form 6781 - Contracts and Straddles 27C Form 2439 - Shareholder Undistributed Long-Term Capital Gains 28A Business Profit or Loss 28B Business Profit or Loss, Page 2 31 Rent and Royalty Property - General Question and Other Information

33A Forms 1065 & 1120S Schedule K-1 - General Information and Income 33B Forms 1065 & 1120S Schedule K-1 - Deductions 33C Forms 1065 & 1120S Schedule K-1 -AMT and Credit 36A Form 1041 Schedule K-1 - General Information and Income 36B Form 1041 Schedule K-1 - Deductions and Credit 37A Schedule F - General Information 37B Schedule F - Activity Identification 41A Form 5227 Part II and 15 Years Carryover 41B Other Carryovers and NOL 41C Foreign Tax Credit Carryovers 43A Forms 4797 and 6252 - General Information 43B Form 8824 - Like-Kind Exchanges - General Information 43D Form 6252 - Prior Year Installment Sale - General Information 43E Form 4684 - Casualty and Theft Loss - Business Income Producing Properties 43F Form 4684 - Prior Year Casualty and Theft Loss - Business or Income Producing Properties 43G 1065/1120S Section 179 and Form 6252 Installment sale 50 General Depreciation 51 Listed Property and Other Property with Business Use Percentage 53 Other Depreciation 54 Bonus Depreciation Elections

55A Disposal (Current year Dispositions) 55B Disposal (Like-Kind Exchanges) 55C Disposal (Casualty and Theft) 70 Deductions and Investment Interest 71 Schedule A - Charitable Deduction 72 Form 4684 - Casualty and Theft - Personal Use Property 73 Revenue Procedure 2009-20 (Ponzi) 74 Schedule B and Accounting Income 75 1041-A and 5227 Balance Sheet


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2016 Form # 1041 FORM DESCRIPTION

76A Form 5227 - Split-Interest Trust Information 76B Form 5227 -Split-Interest Trust Information, Page 2 76C Form 5227 - Split-Interest Trust Information, Page 3 80A Business Credits - General Information 81A Form 8801 - Credit for Prior Year Information 81B Form 1116 - Foreign Tax Credit - General Information 81C Form 3468 - Investment Credit 82A Form 4136 - Computation of Credit for Federal Tax on Fuels 82B Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 2 82C Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 3 82D Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 4 83 Additional Credit Information and Form 4255 84 Other Depreciation Information 85 Other Information 86 Other Payments and Credits

87A Schedule I - Alternative Minimum Tax 87B Schedule J - Accumulation Distribution 87C Net Investment Income 88 Form 8855 - Qualified Revocable Trust Information 89 Two Year Comparison - Income 90 Universal Explanation

91A Form 1045 Application for Tentative Refund - General Information 91B Form 1045 Schedule B - Computation of Decrease in Tax 92 Forms 2848 and 8821 Power of Attorney 93 Asset Acquisition Statement 94 Domestic Production Activities

95A Amended Return 95C Consent to Disclose 95D Change of Address-Business 95F Report of Foreign Bank Accounts 95G Report of Foreign Bank Accounts, Page 2 95I Small Employer Health Insurance Premiums 95J General Business Credit Carryover 95K Tax Projection 95L Tax Projection, Page 2 95M Application to Adopt, Change or retain tax year 96A Statement of Specified Foreign Financial Asset 96B Statement of Specified Foreign Financial Asset, page 2 96C Form 8886 - Reportable Transaction Disclosure Statement 96D Form 8886 - Reportable Transaction Disclosure Statement, Page 2 96E Disclosure Statement 97 Trust Accumulation of Charitable Amounts 98 Nonresident Alien Return

99A Return of Foreign Trust with US Owner 99B Foreign Trust Balance Sheet 99C Transactions with Foreign Trusts, Receipt of Foreign Gifts 99D Foreign Trust Transfers and Obligations 99E Foreign Trust Distributions and Gifts


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California - Sort by form number 2016


CA1 CA General Information CA2 CA Income CA3 CA Deductions CA4 CA Schedule A - Charitable Deduction

CA5A CA Estimates CA5B CA Payments CA6A CA Form 541 Schedule K-1 - General Information CA6B CA Form 541 Schedule K-1 - General Information CA8A CA Schedule C - Business Income CA8B CA Schedule C - Business Income, Page 2 CA9A CA Rent and Royalty Property CA9B CA Rent and Royalty Property, Page 2

CA10A CA Schedule F - Farm Income CA10B CA Schedule F -Farm Income, Page 2 CA11 CA 1099-R Retirement Information CA12 CA Depreciation and Amortization CA13 CA Power of Attorney - General Information CA14 CA Forms 1065/1120S Schedule K-1 - General Information CA15 CA 1065/1120S Schedule K-1 - Deductions CA16 CA Forms 1065/1120S Schedule K-1 - AMT and Credits CA17 CA D-1 - General Information and Income

CA18A CA Form 8824 - Like-Kind Exchanges - General Information CA18B CA Like Kind Exchanges Outside California CA18C CA Like Kind Exchanges Outside California CA19 CA Prior Year Installment Sale - General Information CA20 CA Casualty and Theft Loss - Prior Year Business Income Producing Properties CA21 CA Casualty and Theft Loss - Business Income Producing Properties CA22 CA Alternative Minimum Tax CA23 CA Schedule J - Accumulation Distribution CA24 CA Current Year Credits CA26 CA Other State Credit CA27 CA Sales 179 Pass Through CA28 CA Casualty and Theft - Personal Use Property CA29 CA Carryovers and NOL CA30 CA Electronic Filing CA31 CA Electronic Funds Withdrawal CA32 CA Resident & Nonresident Withholding Tax Statement CA33 CA Real estate withholding Tax Statement CA34 CA Change of Address CA35 CA Ponzi CA36 CA Witholding Payments


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Federal - Sort by form description 2016


75 1041-A and 5227 Balance Sheet 43G 1065/1120S Section 179 and Form 6252 Installment sale 23 1099-R Retirement Information 83 Additional Credit Information and Form 4255 3 Allocation Information

95A Amended Return 95M Application to Adopt, Change or retain tax year 93 Asset Acquisition Statement 9 Bank Information

10A Beneficiary and Grantor Information 54 Bonus Depreciation Elections

80A Business Credits - General Information 28A Business Profit or Loss 28B Business Profit or Loss, Page 2 95D Change of Address-Business

2 Client Contact Information, Elections and Filing Instructions 95C Consent to Disclose 70 Deductions and Investment Interest

96E Disclosure Statement 55C Disposal (Casualty and Theft) 55A Disposal (Current year Dispositions) 55B Disposal (Like-Kind Exchanges) 26B Dividend Income and Other Income 94 Domestic Production Activities 4 Electronic Filing - General Information 1 Estate and Trust Information

7A Estimates 41C Foreign Tax Credit Carryovers 99B Foreign Trust Balance Sheet 99E Foreign Trust Distributions and Gifts 99D Foreign Trust Transfers and Obligations 36B Form 1041 Schedule K-1 - Deductions and Credit 36A Form 1041 Schedule K-1 - General Information and Income 91A Form 1045 Application for Tentative Refund - General Information 91B Form 1045 Schedule B - Computation of Decrease in Tax 81B Form 1116 - Foreign Tax Credit - General Information 27C Form 2439 - Shareholder Undistributed Long-Term Capital Gains 81C Form 3468 - Investment Credit 82A Form 4136 - Computation of Credit for Federal Tax on Fuels 82B Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 2 82C Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 3 82D Form 4136 - Computation of Credit for Federal Tax on Fuels, Page 4 72 Form 4684 - Casualty and Theft - Personal Use Property

43E Form 4684 - Casualty and Theft Loss - Business Income Producing Properties 43F Form 4684 - Prior Year Casualty and Theft Loss - Business or Income Producing Properties 76A Form 5227 - Split-Interest Trust Information 76C Form 5227 - Split-Interest Trust Information, Page 3 41A Form 5227 Part II and 15 Years Carryover 76B Form 5227 -Split-Interest Trust Information, Page 2 43D Form 6252 - Prior Year Installment Sale - General Information 27B Form 6781 - Contracts and Straddles 81A Form 8801 - Credit for Prior Year Information 43B Form 8824 - Like-Kind Exchanges - General Information 88 Form 8855 - Qualified Revocable Trust Information

96C Form 8886 - Reportable Transaction Disclosure Statement 96D Form 8886 - Reportable Transaction Disclosure Statement, Page 2


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2016 Form # 1041 FORM DESCRIPTION

33B Forms 1065 & 1120S Schedule K-1 - Deductions 33A Forms 1065 & 1120S Schedule K-1 - General Information and Income 33C Forms 1065 & 1120S Schedule K-1 -AMT and Credit 92 Forms 2848 and 8821 Power of Attorney

43A Forms 4797 and 6252 - General Information 21 Gambling winning 95J General Business Credit Carryover 50 General Depreciation

26A Interest Income and Seller-Financed 51 Listed Property and Other Property with Business Use Percentage 25 Miscellaneous Income - Detail

87C Net Investment Income 98 Nonresident Alien Return 6 Notice Concerning Fiduciary Relationship

41B Other Carryovers and NOL 53 Other Depreciation 84 Other Depreciation Information 85 Other Information 86 Other Payments and Credits

10B Partial Grantor Information 7B Payments and Extensions 5 Penalties

31 Rent and Royalty Property - General Question and Other Information 95F Report of Foreign Bank Accounts 95G Report of Foreign Bank Accounts, Page 2 99A Return of Foreign Trust with US Owner 73 Revenue Procedure 2009-20 (Ponzi) 71 Schedule A - Charitable Deduction 74 Schedule B and Accounting Income

27A Schedule D - Capital Gains and Losses 37B Schedule F - Activity Identification 37A Schedule F - General Information 87A Schedule I - Alternative Minimum Tax 87B Schedule J - Accumulation Distribution 95I Small Employer Health Insurance Premiums 8 State Payments

96A Statement of Specified Foreign Financial Asset 96B Statement of Specified Foreign Financial Asset, page 2 95K Tax Projection 95L Tax Projection, Page 2 99C Transactions with Foreign Trusts, Receipt of Foreign Gifts 97 Trust Accumulation of Charitable Amounts 89 Two Year Comparison - Income 90 Universal Explanation 20 Wage


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California - Sort by form description 2016


CA15 CA 1065/1120S Schedule K-1 - Deductions CA11 CA 1099-R Retirement Information CA22 CA Alternative Minimum Tax CA29 CA Carryovers and NOL CA28 CA Casualty and Theft - Personal Use Property CA21 CA Casualty and Theft Loss - Business Income Producing Properties CA20 CA Casualty and Theft Loss - Prior Year Business Income Producing Properties CA34 CA Change of Address CA24 CA Current Year Credits CA17 CA D-1 - General Information and Income CA3 CA Deductions

CA12 CA Depreciation and Amortization CA30 CA Electronic Filing CA31 CA Electronic Funds Withdrawal CA5A CA Estimates CA6A CA Form 541 Schedule K-1 - General Information CA6B CA Form 541 Schedule K-1 - General Information

CA18A CA Form 8824 - Like-Kind Exchanges - General Information CA16 CA Forms 1065/1120S Schedule K-1 - AMT and Credits CA14 CA Forms 1065/1120S Schedule K-1 - General Information CA1 CA General Information CA2 CA Income

CA18B CA Like Kind Exchanges Outside California CA18C CA Like Kind Exchanges Outside California CA26 CA Other State Credit CA5B CA Payments CA35 CA Ponzi CA13 CA Power of Attorney - General Information CA19 CA Prior Year Installment Sale - General Information CA33 CA Real estate withholding Tax Statement CA9A CA Rent and Royalty Property CA9B CA Rent and Royalty Property, Page 2 CA32 CA Resident & Nonresident Withholding Tax Statement CA27 CA Sales 179 Pass Through CA4 CA Schedule A - Charitable Deduction

CA8A CA Schedule C - Business Income CA8B CA Schedule C - Business Income, Page 2

CA10A CA Schedule F - Farm Income CA10B CA Schedule F -Farm Income, Page 2 CA23 CA Schedule J - Accumulation Distribution CA36 CA Witholding Payments

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