Sourcing Income to Specific States for K-1 Passthrough Entities Flowing into Business modules

Multi State K-1 Input for Partnerships, S-Corporations, and Corporations Returns

• Lacerte does not allow multi-state sourcing of most income items from Passthrough K-1 entities flowing into Partnership, S-Corporation, or Corporate returns.
• These income items are allocated according to state apportionment rules
• Exceptions to these rule will be indicated by a a state column next to the specific income item inside of the Passthrough K-1 Screen in the appropriate business module.
• Individual state rules may prevent some of these exceptions.  Not all states use the same rules.