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How to allocate partnership CA 1231 gain/loss in ProConnect Tax

by Intuit• Updated 1 month ago

Starting in 2019, the following input fields have been introduced to the California Miscellaneous section of Partner Miscellaneous Info. within the Partnership return. These input fields are located under the 1231 Gains/Loss Allocation subsection.

  • Federal Gains (code 311) - Use this code to enter only the gain portion of any federal 1231 special allocations for each partner. This amount carries to Schedule K, column a.
  • Federal Losses (code 312) - Use this code to enter only the loss portion of any Federal 1231 special allocations for each partner. This amount carries to Schedule K, column a.
  • California gains, if different (code 1000) - If the California 1231 gain is different from the federal, enter the California amount to be used on the K-1 for the partner.
  • California losses, if different (code 1001) - If the California 1231 loss is different from the federal, enter the California amount to be used on the K-1 for the partner.

For California purposes, the Federal Gains or Federal Losses inputs will act as overrides for the Federal column, and will be used in the California column, of the K-1 by default. The California gains, if different or California losses, if different inputs will be used in the California column. The Adjustment column will compute the applicable difference based on these two entries.

Follow these steps to allocate CA 1231 gain/loss in the Partnership return:

  1. From the Input Return tab, go to Schedule K-1 ⮕ Schedule K-1 Miscellaneous ⮕ California Miscellaneous section.
  2. Locate the 1231 Gains/Loss Allocation subsection.
  3. Complete any applicable fields in this subsection.
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