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Can I remove portfolio income from a 1065 multi-state allocation?

val-weight1
Level 1
Partnership is domiciled in Utah and has portfolio income with the exception of Arizona rental income passed through from a Limited Partnership.
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1 Solution

Accepted Solutions
George4Tacks
Level 15

ProConnect uses negative one (-1) to represent a zero. Do the allocation with -1 to the source(s) of that portfolio income that does not apply for that state and the total amount to the other state.


Here's wishing you many Happy Returns

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3 Comments 3
PhoebeRoberts
Level 11
Level 11

You need to read each state's forms instructions (and sometimes the statutes, because multi-state partnerships are the worst) to determine what goes into the apportionment formula for any given state, and what income is considered to be apportioned. You may also need to contact the LP for additional information - some states would include your partnership's percentage of the LP's factors as adding to your own factors.

I don't happen to know the right answer for UT and AZ - I don't have any AZ entities at the moment, and my UT partnership is nonresident with only nonresident partners.

val-weight1
Level 1

Thanks for your response.  I may not have been clear with my question.  I have done the research and have determined the allocable vs. apportionable items.  I just would like to know how to tell the software to allocate the portfolio income only to one state.

 

Thanks!

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George4Tacks
Level 15

ProConnect uses negative one (-1) to represent a zero. Do the allocation with -1 to the source(s) of that portfolio income that does not apply for that state and the total amount to the other state.


Here's wishing you many Happy Returns