freshy70
Level 4
‎07-20-2022 12:03 PM
Hi - I'm doing an 1120S for a client who moved from NY to DE. I believe this requires a NY return as well as a DE return. I calculated time spent in each state and it's 76% NY and 24% DE. I entered 76% in NY apportionment override and 24% in DE apportionment override but I get a message that overrides are not allowed on e-filed returns. Do I need to go to every entry on the return and split the dollar amounts between NY and DE or is there something else to do that I'm missing. I'm also unsure what the "property factor" is on the apportionment summary. It ends up being a number that doesn't correspond to any of the balance sheet numbers.
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sjrcpa
Level 15
‎07-20-2022 01:05 PM

You apportion by revenue, property, and payroll - or however many factors each state uses. Time spent is not relevant, unless that's how you are apportioning payroll.

Property factor is generally the average of beginning and ending book value, plus 8 times rent.


The more I know the more I don’t know.
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PATAX
Level 15
‎07-20-2022 05:02 PM

@freshy70 check the state government instructions to see how to apportion this, which you may be able to access through your software. If not, then go on the state websites for the government instructions. If you cannot e-file because of errors, then check the states for their rules and to see if they permit respective return to be mailed, and if so, discuss this with the client, and see if client requests the returns to be mailed. If so, check to see if an e-file opt out statement signed by the client is required. Hope this helps. Just my opinion.

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