Home

Drake Software User`s Manual Supplement: Partnerships (1065)

1. Dre ansa Supplement Pre Schedule M2 nbn of Panes Capta ecu Pars an of Schedule M 3 reconcile financial statement net income loss far the return per Schedule Part I line L1 to net income loss on Form 1065 page Analysis of Net Income Los line partnership is eque to or voluntarily files Schedule M 3 the partnership Foren 1065 and all atacents and schedules including Schedule Additional information could be required on the 916 aad SCHS Screens The SCH sereen is usei to provide detailed information required by the IRS for cer tan lines an Sehodule Form 8916 A This sereen can be used in place ofthe actual M3 screen in Drake In other words if you use this sereen far all applicable Tines on Schedule M 3 or Farm 8916 A you do nar need to make any ennes on tbe 3 amd 8916 serens The total amounts entered on the SCH screen do not show up on the actui M3 and 916 screens in the pogram Thy are however printad on the as applicable with references 1o the corresponding statements To create a statement for a ine select the desired ine ftom the drop then enter descriptions and their corresponding amounts Once the information is entered or if Additional descriptions are required or the ie press PAGE DOWN to access a new Seren make the same selection from the Select number drop lit NOTE Aine sectors are canes prog
2. Reject Code R0000 922 01 Files EIN and rame contol in the retum header must in the E File Database unless Name Control or of address change cheek box is checked if applicabile Reject Code RO00D 900 01 The retum type indicated in the ret must match the reum type established with the IRS for the EIN m hender reject associated with the Name Conto occus some NOTE your gestors cante anenaedon the IRS s wabana For dlls goto ts gov Tar Professionalse Fue Providrs amp Parners Using he Correct Name Conto ng PainershipTax Binary Attachments Binary or PDF files ean be atachod to certain tx forms These attachments ar gen erally signature ori party documents such as a a signed lease or a signed apa statement some instances th IRS rules that a document be attached don eid retum in other instances document can be attached voluntarily to sup or explain an entry in the return In cler case a document must be printed Sand into the computer and attached to the vetura in ander t be ee with the You can aach PDF files to fadera partnership 1065 returns for e file The PDF Attachments screen is accesible fom the Data Entry Menu The PDF Attachment Process Three muin steps involved in the PDF attachment process in Drake Creating a PDF document ibe attached 2 Informing the program thut a PDF document will be sent with the
3. SCH2 del sereen f r Schedule L is qd for an item marked does not import on the trial balance Figure s peer Doprociation To complete an SCH detail sereen n data entry Open the SCH screen for the return 2 Select the line number front the SCH2 drop i Enter the applicable item descriptions and beginning and end of year totals To enter details far additional lines of Schedule L res PAGE DOWN and eat steps Zand 3 Data is save automatically upon ext hon the retum is produced Schedule L af the return reflects both the amounts imported iom the rial balance worksheet and the totals of the amounts entered on the 5 sereen Partnership 1065 returns can have up to four components of total depreciation coos Real estate rontal Renal other than eal estate Any renting depreciation For uial balance purposes enter depreciation amount directly into the appropriate fields on the uial balance worksheet Note that ental expense deal worksheets are ued for OS and RENT depreciation Ener B825 and RENT deprecation amounts in the detal worksheets NOTE frimportna purposes but be aware that he B825 and RENT screens Inthe prograrn to ba edited 4582 detall screens see Figure 42 on 5 are use Whon the balance is imported the COGS depreciation expense amount flows directly to the appropriate line
4. sereen aan Mrne answer to Schedule K item M Did the partner contribute property with a builtin gain or loss is Yes for partners On the PRINT seren select Ves in the Hom M on Schedule section 2 On sereen KIG select KIM Built in Gain Loss Statement fom the drop list and type any supplemental infomation needed in the text box below tho answer is Yes far same partners but not others use the individual partner screens to report the supplemental information The Mem M sereen is accessed by clicking the M tab at the tp of any partner s KI sereen The rate Manual Sun plement Paresh tf 1065 Partner Information Partner s Ac Increases and Decreases to Basis Annual Update of Partner Information Special Alloc supplemental information shoul list each property the partner contributed the date the property was contributed and the amount af ihe property s builtin pain ar loss djusted Basis Worksheet Basis information for indvidual partners should be entered in the 1040 NOTE scteein Drake cannot exported fom he 108 Package to a 1040 retur Such an import wouid verde Imitations and caryovers calculated In tne 1040 program Use the Partner s Adjusted Basis Basis Whs sereen to caleulate a part ers mew basis afer increases or decreases are made to basis during the curren yea A partner s adjusted outside basis refers o
5. 2 This book depreciation amount is compared to the ax depreciation amount The depreciation amount is the depreciation amount reported on retum including any section 179 amount 3 The differences boron the book and tax depreciation amounts are carried to the appropri form and line the book depreciation amount is greater than the depreciation amount the difference is carried to either Schedule Ml line da Schedule Part ine 25 as a negative amount Form 8916 A line L as a negative amount for assets selected on the 4562 det screen for COGS Gries depreciation amount is greater than the bok depreciation amount the difrence is carried to either Schedule M I Schedule Part line 25 as a positive amount Form 8916 4 line JL as a positive amount for assets selected on the 4562 deta sereen for COOS Schedule M 3 The Sehedale section of the Data Entry Menu includes direct acces to the var ious MB screens Figure 16 Ma domestie partnership reports on Form 1065 Schedule L that its tota assets atthe end of is tax year eal or exceed 10 million or that is gross receipts aqual or 5250 000 must complete and fle Schedule M 3 instead of Schedule M program alan ta sonets based on IRS rure Far mara noraen see Ante ol ose Vrat e ue NOTES Saa andad are t i asada oS som dn manualy nt one se Real acre
6. Drake suse PARTNERSHIPS 1065 SupportDrakeSoftwarecom gt 828 524 8020 Drake Software User s Manual Tax Year 2014 Supplement Partnerships 1065 Support DrakeSoftware com 828 524 8020 Deae Supplement Parier Copyright Trademarks The 2014 Drake Software Manual Supplement Partnerships Drake Tax Software and any ober related materials are copyrighted material sights are reserved by Drake Enterprises LTD including all ownership ih This document associated software and related materia are the property of Deake Enterprises LTD Drake Enterprises LTD hereby authorizes you to downloud display print and repro dice the material in this document in an unaltered farm only for your personal commercial use or Tor non commercial use within your organization Copyright Trademark and other proprietary notices may nor be removed 2014 Drake Enterprises LTD sights reserved While every attempt has been made to produce an accurate and complete manual thene sno warranty expressed or implied effet Drake Enterprises assumes no ili fr damages or claims resulting iom the use of the information contained herein The Dake Software Logo and Drake Tax are registered trademarks of Drake Emerprises LTD Microsoft and Windows are either registered trademarks or trademarks af Microsoft Corporation in tbe United States and other countries Othe
7. statements ane generated with the return Figure 24 The Sce 126302 NB election can be made from either the ELEC screen ar the 4562 sereen Making Changes on the Fly Use the PRNT sereen to override program defi Suppressing Forcing Documents 1065 items suppess or fonce the printing of eertain documents go to the PRNT screen and select the desired options Many n the changes override options that are global in Setup The following Form 1065 items can be forced or suppressed fam the sree 2 Foree Schedules amp Sectlon L Schedules L M 1 M2 and Section L are mot printed unless required To have these schedules printed ut the return selet this box Print Form 8893 Election of Partnership Level Tax Treatment Select his box to generat Form B893 with the retum Thor is no equivalent 8893 sereen Dut the form is produced information Tor the fom is available om other dala serens Print Form 4562 Form 4562 Depreciation and Amortization i not generated unless applicable Select this to frc the Form 4562 obe printed To force Form 4342 for ali reums goto Setup gt Optons gt Form 4 Schedule Options and clear the check box labeled Prin Form 4562 only when required Print neatyear depreciation sting Selet this box to print the next year s depreciation schedule ihe option vt already selects Setup gt Option
8. Most cel in the tl balance workset te view only In a new template editable Shit and credit cells are indicted by a dollar amoun 8 When a new tial balance lis opened fora reum debit and credit amounts are zero 50 daa must be entered manually into the template Soma data cannot be imported fom te riai balance and must be NOTE Entered diecty into the data entry within the program For more on these catagories of dala soo Conditions on page 52 Detail Some cells equte more det than can be entered on a single line These cells are Worksheets indicated by butions Figure 36 Figure 36 Example fel at wort Click worksheet button to open a worksheet in a new tab Figure 37 on page 30 ows example of the Other Income worksheet porting Triat Balance Information Dese Mona Supplement unen Tetum to the previous worksheet click the Click to return to TB button abel 1 Figur 37 Note that detail tb the Other Income i Figure 37 might include or more detail worksheets 2 in Figure 37 Do nt create eta worksheets in data ent fh al balance work NOTE sheet does not provide an equivalent detall worksheet Otherwise the balane not cech Totals are displayed at the bottom af cach worksheet If credit and debit columns are of balance the wokshoot highlights the ouo balance amoun Figur
9. Thix option which cases Dre Supplement Pre Sele Kf 1085 Partner nomen he process of reconciling the 1065 is available by going to the PRNT sereen and marking the applicable box under K 1 Items to Suppress Ater completing the Kt envias tor al partners be sure to reactivate NOTE fication and pang thet om Pe PANT sereen Partner Overrides override amounts for the partners you either make changes on each Kl sereen or go to the SA sereen for partner special allocations and make all changes there Far more information so Special Allocations on page 25 Foreign Addresses tke partner has a foreign address enter the Province State Country and Postal Code information in Foreign ONLY alis line of the Partner Name and Address Information section along with the suce address and ciy in the Address and City in section Do not enter anything in the State or ZIP fields Con Verse for a U S address do mot uter anything the foreign address fields The Foreign ONLY fes are locked when retum is opened ick in NOTE one afine felts to unioc them tvougnou rum To rock he Unused Foreign ONLY fl cue and reopen he K Export Tae the following steps export a Schedule K o 4 1040 retum 4 ure that K data entered in he 1065 and at the 1040 etur has been cre ated The sereen in he 1040 does not have o be creto beforehand 2 In the 1
10. 38 for more Force Printing Final End of Year Totals Normally if you mark Final on scren 1 indicating that this as a reum for partnership or corporation Drake zeros out the EOY Total colunn of Schedule L Mark the chock box on screen L see item 2 in Figure 1 on page 2 to display those totals in EOY T Rounding Partner Drake gives you a way to select a rounding partner By marking a check box on sereen KI Figure on page S you can select which should be the rounding partner That parner vil be isted last on the ist of partners and will be the ane who receives any Balancing amount on Schodule K 1 when the return is clt Dre Manual Sgplonen Fares Updating a Prior ear ern Drake Myou do not make a selection the sofware will designate as the rounding pariner the Tis partner you entered you select more than one rounding partner the program generates Return Not telling you that you ve chosen more one rounding part Ter and do tell you which partners will be uscd a the rounding partner and which Form 8878 A For dlc payments on extensions the program now produces Form S878 A the IRS efle Signature Authorization Forin 708 Updating a Prior Year Return in Drake M you prepared the tax return in Drake last year you wil ood to update the return far the current prior year return can be updated in three Ways Asa single retum updated one at atime using Last
11. Deductions Credits and Oder Items amounts to individus partners without having to enter the information into cac K L Separately Amounts can be entered as dollar amounts or percentages Calculations the SA sereen low to the appropriate fields of each To nter partner special allocations for 1065 Parier Information Dese Supplement Partei Grid Data Entry Section 754 Allocations A Open the SA sereen accessible fom the General tab af the Data Entry Mena 2 Make selection fom the Allocation type drop ist at the tp of the sereen 3 Selecta partner from the Partner s ID Number and Name dip list and enter the allocation figure in the Allocation Percentage or Amount field to the right of Repeat these steps for all involved partners To enter data for more than ane allocation PAGE DOWN to access a new SA sereen A change to the SA sereen allows yau to enter a partner s allocation based on a per centage only You now need list only the partners that are geting an allocation not very partner in the partnership regal af allocation Grid Data Entry following for details of an casy way to ener amounts on the Kel screens is no limit tothe number of partners than can be entered If there ae mone than 10 partners for wham you must enter special allocations allocution type tbat be allocated to more than 10 partners press PAGE DOWN
12. Fom 916A Supplemen Aacheni o Schedule M3 Form S94 Credit Sell Employer Health tance Fee Actis 13 6 pri H tee ration 5 taper on Sede A Comt of God Sri X er M on Seta K 1 26 K L p rate Manual Suplemen Partnerships M M tem om Schade 1 24 em efit oe depreciation tng 39 amr of arse 8 o toss Schade A p eiie tae First Sched 17 P cem plating data say 26 gerenti erin ol PIN cric signatures 15 Form french pe 27 s Schede A Cos of onde Sold 7 8 Schedule E Change im Depreciation or Amortization Schaal Form 3S 64 Schalk Parner Dirt Share lems 7 Schaal K 1 are 21 25 Schi ehe Sheet per Hoos 29 31 39 Schule Reconciliation af Books Wi Rum 39 Sicile ecmclition af Bala 31 Analysis of Capital Accoumb 33 Schedule Net Income Lon concilio 32 Sere SIL pla ia Special leans sereen SA 23 25 rate Sofware Urs Monah Pri T year sc va 6 ax Ey esent Ae TEFRA 16 mene i 6 prr u sting parner sy 25 v Windows operating tem St w
13. Year Data gt Update Cents 2013 to 2014 recommended When you open the return for the frt imne in the 2014 program and are prompted t update i With other retums in the program using Last Year Data gt Update Clients 2013 0 2014 ot recommended When you update a 1065 return that was marked as fal the previous year the pro aram informs you that the reum was marked final before prompting you 10 proceed Header Information Sereen 1 contains fields far the penera information that is printed in the top section of page lof Form 106 Name and Address Use seren 1 1o complet partnership rame and address section of Form 1065 For state purposes only iF the partnership bas an alternate address such as a PO bon You can enter it in the Address Line 2 field at the Borrom of sereen 2 Access sereen 2 fom the States tb or enter 2 in tbe selector field and press ENTER Healer kem Deae Supplement Parere Tax Year The software uses he calendar year as the default period for all partnesship returns date are required sereen 1 for December 31 tax year end The program adjusts calculations for depreciation and for gains and densos on of asats based on ne enbiya ac NOTE ITE Forinomnaloe on fling wit a 52 53 wack year soo Electing 52 eok Year nal Ratum on pags 4 Fiscal and ine parmership ses fiscal yeu where he year begin in the current calendar year Calendar and ends
14. amounts included in COGS elective contributions oa section 401 4 cash feed arrangement or amounts contributed under a salary reduction SEP agree ment Drake automatically adjusts salary and wages Tor employment credit cme ond Deets rate Manil Parr Guaranteed Payments and Partner Health Insurance Use the DED and KI screens to report guaranteed payments and partner health insur ance Note that guaranteed payments and health insurance are entered ax separate ifie DED screen amounts do not equal the respecte totals fom he NOTE t Screens the program generates Guaranteed Payment Mis match EF message The eum cannot ba eed uni na EF mas cleared Guaranteed To report guaranteed payments to partners Payments Enter oaf payments on the DED sereen line 10 Enter the guaranteed payments foreach partner on lie 4 of the Part Kc Direct Entries section of the partner s sereen Figure 7 Those cates should include any payments ar credits to a partner for series ren dened Include the use of any capital the partner provided if the payments or credits far that capital are not determined by the partnership s income and can be allocates 10 a trade or business activity These entries should nor include any payments and credits hat should be capitalized o any distributive shares of partnership pois Partner To report partner health insurance Health Insura
15. be associated Ifan item begins with a number it refers othe part of Form 3115 or example 2e refers to Part H Uine 4e I it begins with a lener i refers oa arcu Form 3115 schedule for example Cb refers o Schol C line 20 refers o Schedule C Part 2 line S Explanation Enter the statement explanation Ifthe explanation requies more than 900 characters press PAGE DOW for a second sereen explanation requires more than seven screens oniy the frst NOTE 8 500 characters of the explanation are transmitted with an Form 3115 There no character emt tr pape oad returna The ATT soroen has a separate section to be used only for Part I ine 10 Does the applicant have pending any request for a private lener ruling change in accounting method or technical aie The IRS requires that attached statement in adili ion to providing an explanation include the s tame and ID number Enter the name and ID number and indicate ifthe ID number is an EIN in the applicable Feld at the bonom ofthe ATT sereen Figure 55 Once attachments nave been led out accessing the ATT sereen Spl Existing Forms List of al atacmants created Select NOTE S erect ma tha New neo rane a now And nen cix Open Some Form 3115 tems equite the attachment of documents that cannot be enested in Drake Software for example line 4d af Part requires writen consent from a direc You can h
16. be entered sep and the calculated compared tothe uial balance worksheet Most ial balance items go directly to the locatio indicted program and on the For example the amounts showa in Figure 40 go to Schedule E ne 1 column inthe program and are shown on pae line 1 column d af the 1065 reum G Nem a 71777729 Not al figures can be imported directly however and some amounts are optional Drake has provided an Other Information column i the tril balance worksheet to indicate special conditions and additional information regarding certain ows Table 5 describes most common motes in this coluna 5 Other Information Columa Notes Note Description EI Du reple a Desna spaid n p poral rat required bal reaure stars Sure decia mue etre sure Teide Und ais purchases whan cung cos ef pode ie merry COGS etum program kes charge 1 no secu Schade A ccu Manus Siploment Partnerships Importing Trial Balance informaron SCH2 Detail Typically balance sheet subsidiary schedule docs not import notes are accompanied by farther instructions a the column 10 left of the Other Information column as shown in Figure 41
17. etum is ready to be eed Importing Trial Balance Information Drake tria balance impor feature allows data to be imported imo a 1065 return ftom a tial balance worksheet The wal balance template and importing function has the fal lowing benefits Eliminates the ned ro duplicate entries Reduces data entry errors by automatically importing data to the correct fields Allows preparers to merge basie accounting functions with tax preparation A tew chart of the tial balance parting process available NOTE mort ogee At fet mau Preparing to Use Trial Balance Import The vial balance import function can be usod only an retums that were in Drake 2008 or tr If you haven t already create a lient fe in Drake or update an existing client ftom the prior year Like several other functions of the tax softwar is feature requires Mictsot Excel version 2000 or ter e a dont le in Drake 2014 or update a existing client M you haven t already cres Sle from the por yeaz I addition take these actions w ensure the trial balance isport works properly Enable Macros The wal balance import function uses macros in Microsoft Excel Chock your Excel settings to ensure that macros are artivated and that macro security is set to medium To do so to Tools gt Options in Excel and Select the Security tab Click Macro Security and select Medium then lick in ice 2007 and 200 tn
18. gross income The partnership canno deduc the premiums however if the partnership accounts for insurance paid as a reduction in distributions for that partner oto the Kk sereen Tor the partner and mark the Health Insurance distribution reduction box qualifying partner can deduct 100 of e healt insurance as an adjustment to income The partner cannot deduct tbe premiums fot ay calendar month or part ofa month is which eee she i eligible to participate in any subsidized health plan main tained by the employer ofthe partner ar the partner s spouse Other Deductions Emer other deductions on the DED sereen Drake calculates these amounts ad incorporates the total into the Other deductions line of Form 1063 The following deductions credits adjustments and exclusions also ow to the Other deductions line Amotizaion Bon Form 4562 Depreciation and Amortization rate Manus Siploment ling on Ente Credit adjustment fim Form 6765 Credit for Increasing Research Act Credit adjustment fim Form 8820 Orphan Drag Credit Exclusion ftom Form 8873 Income Exclsion Coot om Form 8941 for Small Employer Host Insiance Premiums Filing an Extension Calendar year returns are due on April 13 2014 By fling Form 704 a partnership an extend the deadline five months September 15 2014 Fiscal yea d on he day ofthe fourth month afte
19. gt ERO must t be completed in Drake for For information NOTE n how to complete tnis setup window ses Drake Sofware Users Manual Tax Year 2014 Sea he IRS structions for utr detas on signature requremans Missing PIN 1f you receive an EF message stating Missing Information the PIN screen check Information ihe Tite and Signature name fields the PIN sereen fore partner signing te applicable fields must be completed Phone number and e mail address are ot required Amending a Ren rate Manil Supplement Parr Form 8879 PE You must the completed and signed Form 8879 PE IRS e file Signature Auth zin Tor Form 1065 Before the retum is ed This oa must be kept in the tax fice far three years from the return due date IRS received date whichever is later For information on using an electone signature pa to sign Fem so Signatures Chapter Return Ress af the Drake Safrane ieri Manual Ta ear 20 Amending a Return Wren you amend a retum i Drake amended Tepiaces ornai n e data Betere amending artum CAUTION fadus tema canon ere ete de he Manager in Chapter atum Rasta olia Drake Sofware Users Manual T Var 2014 To filea 1065 etum that has been amended seeen Lin data entry and select Amended return in section 2 Make changes as applicable to forms and schedules 3 Go to the EF sereen and select Amended 10
20. he Form 8903 s nat applicable for partnership because te kmialon calculated athe ber leva Form wages an he 8903 screen refers to the partnership s ez wagos paid iat are appicabie tne Domestic Production Actes Deaucton Schule for 1065 Parier Information rate Manil Parere K 1 Cover Letters cover laters can b prducodto accompany each Schadule in a retum You can set up global option to produce 1 cover eter for all retus containing Schedules you can choos the option on a peretum basis To prevent the partner s name and adress trom being generated in the header of lenar goto be KL screen accessible the TIP Miscellaneous ab and mark tne Do not print entity information bos You must fest select to Use letterhead on letters box at Setup gt Communications Editor gt Setup Letterheads Margins and Borders for any antiy into ta appear as header Producing To have the K I cover leners produced automatically with all applicable retums go to Letters for Setup gt Options gt Optional Documents sb and mark the box labeled Include K 1 Returns etter with returns The signature on the reum can be produced in ane of three Ways completing the Tax Matters Partner fields at the bottom ofon sereen Schedule B By completing the partner information on the PIN sereen an entry here overrides bz Partner informat
21. is used for Part line 12 and Part line 230 See the Parts T and II and Parts I and IV sections af this docu ment for mone information on completing the ATT2 sereen for these items From View mode Used for PDF ATT Scroen There are nwo ways to access the ATT sereen ia Drake Attachments From the Data Entry Menu In the Change in Accounting Method soon of the Other Forms b click ATT From the line that requires an attachment As shown in Figure 4 some lies have links Click an atachmen link to open the ATT sereen igure St Achmet inks froen Schl C screen Not ali ines hat require statements include linkto the ATT screen NOTE Ass ect ne teid ievel neip ck F1 n a teld o determine a Statement required The program produces an EF message If any Tequred statements are missing Complete the following Holds as applicable for all ATT sereen attachments codes Use these boxes to associate the attachment with an instance of Form 3115 ifthe return contains more than one a parc Sehed Form IIS cation for Change in Accounting Method Deae Manua Supplement Parier Additional ATT Fields PDF Attachments E prope if the reum contains more than ope Schede E ar both See Codes page 56 for mone information oa codes Schedule Select the line of the form or schedule with which the aachmem to
22. of Form 1065 For Other costs excluding depreciation use a W worksheet The depreciation amount is included onthe statement for other costs and should not be included in the Other Costs worksheet TE Lneiibonine DED screen i an adjustment feks tor depreciation NOTE rng using the wal balance import feature see Importing Trial Balance Information on decline spp els nal to Sch A balance worksheet norin data entry When the tal balance is imported the COGS depreciation expense amount directly to the appropriate ie of Form 1125 A and ealeulatad accordingly more on depreciation and trial balanse import see Depreciation on page 3 Ordinary Income Loss income or ftom other partnerships estates and tust line 4 of Form 1065 tom cir sereen Schedule K 1 om another partnership ar Sereen KIF Schedule K 1 fom a fiduciary Net Farm Profit Loss The partnership s net farm profit ar loss line 5 af Farm 1065 ows fom information entered on sereen F Farm Income and Expense profit ot oss from onher Partnershipa estates or trusts appears on line 4 of the retum To enter this informa Tion fom the INC screens clic he links to seeen KEP or sereen KIF on ine 4 Emer the fari profit or los from other partnerships estates wuss on line 1 of sereen KIP or line 6 of screen KIF
23. of Schedule A oa the tetura and the rental depreciation expense amounts Ho directly to the appropriate Iines of the MOS and RENT screens ss applicable Because the remaining depreciarion comprise any number of assets the amount entered on the tal balance does nar flow to rerum To ensure that each porting Triat Balance own Dese Moms Supplement Rental Expenses component ofthe totul remaining depreciation is ealeulate into the return cach asset be entered on the applicable depreciation sereen in data entry Figure 4 Figure 42 Emer Special data 4862 detit sereen Ti enter the dera on override scene Entering me remainder of ie depreciation on the tial balance worte Sheet heips ensure alte balance shest balances and proves a way check iat amount on ine 1 af Schedles conect Compare NOTE the calculated ine 1 at the bottom of the tral balance to the equivalent ine on Schedule t of ma return fne arcana maten but he Ine 1 amounts diner an We could The following infomation applies only for partnerships with multiple rental prope The partnership tal balancos include lines for rental income and expenses Figure 43 renal expense ems require a tial balance detail worksheet Figure 43 Renta rows on a iial balance worksheet When imported the renal expense data entered on the wia balance workshe
24. of the year are greater than 250 000 Page 1 of Schedule i required if the balance shee tl assets at he end of the year equal ar exceed 10 million and Schedule M I and pages VS of Schedule are roguod if the tll assets equal or exeod 350 million Schedule Schodule shows all items of income and expense that are not subject to tax plus hose accounting items that are not income x items When required taxpayers must reconcile book income with the table income Use the MI sereen to enter book to tax difference fr Sehedule Book to tax dif ferences ane classified as permanent or temporary and as favorable ar unfivorable as described in Table 2 Table 2 Examples of Difference for Shale MeL Difference Description Examples conan nent Depreciation The program may make an adjustment for bouk to tax depreciation differences The and done with the following steps This procedure refers to depreciation Amortization tivoughout but it applies for ether depreciation or amortization Adjustments 4 The amount on the Schedule L Beginning of Year accumulated depne ciation line 9 column ine 10b accumulated depletion is subtracta Scheider Reconciliation of come Deae Supplement Porter fiom the End of Year accumulated depreciation line 9 column c This isthe book depreciation amount
25. return Attaching the PDF document for These steps are described in the following sections Cygatinga Tosca PDF mie POF File Dese Mom Supplement Parier 3 Scan the document to be attached to de etum apes cuta rtg rg 2 Save the document to your client s file your computer s desktop ar any Where you can readily fiad it Many pos af documents or instance document created in Micrasoft NOTE werd can be printed or saved as POF documents it you have a POF printer such as Adobe Reader installed Adding PDF To indicate in the sofware that a PDF document will be sent with the rerum Documents Drake 1 Open the retum in Drake From the Data Entry Menu click PDF Attachments accessi ion the Eleetronie Filing section ofthe General tab or type PDP in the selector eld and press ENTER See Figure 28 Figur Select PDF Attachments or type P DE selector and press BTE 2 out the columns on the PDF Attachments sereen Soe Table 3 for examples Table 3 PDF Attachment Window Name of Column Description Examples Description aecpincrtmornen ts Tie a Garo cay regii TielowecOai pa prisa pa 3 Exit tbe PDF Attachments window Because you ve indicato that a PDF document is tached the program generates an message regarding the attachment when the return is cau
26. screens DED screen amount are reflected on page of Fonn 1065 but are not shown any penerated Form 4862 IMPORTANT For move information on depreciation and the 4562 sereen in Drake se Software User Mannal Ta Yar 2004 the Drake Line L cofFom 1068s reserved for depreciation that 1 is ftom Form 4862 and 2 sot aimed elsewhere While the program pulls data tom the 4682 screen for this Dre Manual Suplement Prep pue Section 754 Section 179 Roclassify to Amortization Depletion line i provides Mb Figure Kon page 13 specially for deprecation that is claimed elsewhere M Lap na nals a igure 16 lds DED sereen Bath lines and 16 onthe DED screen are adjustment fields and add to or subtract sofware calculations that based on entries elsewhere in the program Enter the depreciation claimed assets used in a wade or business Line 16a An entry here is added the depreciation trom the 4862 screens The amount on line M6 no reflected Form 4562 Sce or further and information on how this fed ies n to e 4562 Line 16b Drake recommends using seren A rather han the DED sereen o depreciation claimed on Form 1125 4 An ety on sereen adjusts any on line 16b ofthe DED sereen andi ino the tenal deductions on 1065 If there is an entry on line 16 but
27. the credit amount calou NOTE tec tom Fomm 888 Crest tar Small Employer Pension Pan Coss partnership contributes toan IRA for employees cde the contributions salaries and wages on cither the DED screen Salaries and wages ine or sereen A Cost or abor Hine Do not use line 18 of the DED sereen to deduct payments for partners to retirement ar deferred compensation plans IRAS qualified plans Simplified Employee Pension SEP or SIMPLE IRA plans Report these amounts which are dolbcto by the part ers on their own rerums sereen K item 134 code R Employee Benefit Plans Amounts Paid for Medical Care Pub 541 Use the DED screen line 19 to ener the partnership s contributions to employee ben fits programs such as insurance ral and welfare programa that are not part Pension or profit sharing plan included in ie 18 Retirement plans ete The line 19 amount should not include amounts paid for insurance that constitutes care for a partner a partner s spouse or a partner s dependents For informa tion entering amount paid for medical care see Guaranteed Payments ad Part ser Health Insurance on page 10 IRS Pub 1 states hat premiums fr health insurance paid by a partnership on behalf ofa partner far services asa partner are wrested as guaranteed payments The partner Ship can deduct these payments as a business expense and The partner must include Them in
28. 065 retum goo View mode 3 Click K1 Export in the View mode toolbar A list of SSNs that camar be exported appears if applicable lick Net 4 The Export Ks dialog box Figure 12 lists all client SSN that can be exported To prevent an em in this list from being exported remove the check mark to the honori Figure 12 SS ey the expat for 1065 Parier Information Dese Supplement 5 Click Esport The 1 will now appear on the partner s 1040 etum Basis infomation tor indvidual partnere should be entered in the 1040 NOTE sicko in Drake mis tration canat be exported fom he 1065 Package to 1040 retur Such an import wouid overde Imitations calculated in ha 1040 program Supplemental Information Two types of supplemem formation can be added to Schedules K I Supplemental data for al K s ina rerum Supplemental data fra sine in a return ad supplemental information globally o al Ks enter the information in the Supplemental Information block of screen KIG Todd supplemental information to individual K 1 open partner s 1 screen and ick the Supplemental Info link at the top of sree In the Supplemental Infor mation pane Figure 15 enter information pertinent 1o the partner Ran mum 1S Supplement tomaton tor Schedule K 1 Figure thi example the information entered an the
29. 1 in Drake mark the Technical termina box ana ether Initial Return or Final Return applicate tem H Accounting method Select Cas description of the method used Acer or Others if Other entera tem I Number of K 1 forms attached Completed automatically based on the umber of KI seen filed Use sereen 1 10 override this number Dre Manus Sagplonen Primer come od Deductions Income and Deductions Ener income and deductions the INC Income and DED Deductions screens INC screen amounts to Fon 1065 page 1 nes 1a o 7 Ab see Other Income Los on page 9 DED screen amounts to Form 1065 page I ines 9 through 20 Other income and Other deductions data is shown on atached slate ment worksheets in View mode of the reum Schedule K Commonly fields ftom Schedule K including ids for income dividends char Moms comributions and distributions provided at the botom of he INC screen Figure 5 TEUER pre opere I mt Amount ne in thee fields should ot be re entered nthe K screens iro Canale Content on page 1 of he 1065 NOTE iin Christi conibuons stead on Shel K Enter arae on ener he INC sereen or sereen not bain For infomation on the Seed K tems at the tom af the INC creen ce Scheit Me Parnes Shr ns oa page 21 Gross Receipts grove receipts or alex and returns an
30. 65 Tho basies of data entry for a partnership 1065 return are the same as for the 1040 Fied and help shortcut keys and navigation throughout data entry Tuncton as they do in the 1040 package Sce the Drake re User Tex Fear 2014 Tor the basies of using te program What s New in Drake for Partnership Returns Drake programs its tax software according to the latest IRS ules and regulations The 2014 program reflects all changes 1o credits and deductions including discontinua tions Fr details on new regulations fot 2014 see the IRS instructions for Form 1065 Schedule K Business Activity Statements have been added to allow the breakdown of Schedule K items by multiple business activities K I statement by business activity will also be provided Schedule L and M 2 Schedule L and Schedule M 2 reconciliation totals are displayed on serens L and M2 do facilitate reconciliation af he balance sheet ilem 1 in Figure 1 on page 2 ha New in for Partnership Returns Dese Moms Supplement Parier Figure 1 Begining me Ende Ver diy on L sereen Not that the totals fum the balance see s subsidiary schedule SCH2 seren aso appear ia the BOY Totals and EOY Totals columns of the L sereen M you make any changes to the data recaleulate the return press for those changes to be displayed on the sereen TIP Tespeed up caeaton retums that contain molle states ape
31. 65 left hand column 4 Go 1o the SCH sereen and complete the following fields Statement number Type 18 Tite Entra statement title of 28 or fewer characters Explanation text box Identify the amendad items by line number and explain what was changed and why M amending just the K 15 goto each 1 sereen Amended KI and make seeded changes Wen amending 1088 ratum ali are amended and the NOTE Amended K 1 box on the retan marked by du To override tis go to the PRNT sccen and mark Do NOT check amended boxon Sch KA TEFRA and Filing Eligibility partnership subject tothe TEFRA Tax Equity and Fiscal Responsibility Act of 1982 audit rules cannot file an amended 1065 to correct a partnership item reported on a previously led return but according to these ules te tx maners part er TMP must file Form 8082 on the partnership s heal and request the IRS trest he Form as a substinuted reum A qualifying as a small partnership se Section 6231 N1NB with 10 or fewer partners ar any one time during the is exempt ftom the TEFRA audit les ant can an amended Farm 1065 and K 15 1o paren rate Suplement Primer onl norman Additional Schedule B Ownership Information This section covers Schedule Othe Information state specific information and some program overs The program has three
32. Dre Suplement Prep pee For information on farming partnerships with a corporate partner ee Pub 225 Farmer Tax Guide Net Gain Loss The amount in 6 Nt gain s fum Form 4797 Part I ine 17 of Fom 1065 ovs fom Form 4797 Amounts can also fom screen 4862 but only if that sereen shows assets sold and property Other Income Loss Use the INC sereen o enter amounts for the Other income line of the maia fm Spec INC sereen ens are displayed on arached statements in View mode ofthe Amounts fom the following serens also flow io line 7 Screen 6478 Form 6478 Biofuel Producer Credit Sereen 8864 Form Biodiesel Fuels and Low Sulfur Diesel Fuel Produ tioa Credis Additional ede on the INC sereen include Interest income on receivables Rocoveris of bad debes deducted in earlier years Sesion 481 adjustments tax rond eash basis Taxable income from insurance proceeds Other income temize To enter atonal sources af income not shown creste worksheet for the Other income temize Feld on the INC sereen emner other income loss om a partnership estate or tust use the KIP or KIF sereen clik the links on line 4 af he INC sereen Compensation and Wages Use ine 9 of the DED sereen to enter wages and salaries paid Do not include guaran ead payments to partners or salaries or wages reported elsewhere in the ratum such the
33. Form 3115 Application fo Change Accounting Method The screens accessible from the Change in Accounting Method section include Sereen 3145 Change in Accounting Method Used o access fields for Form SUIS including Schedules A through D Sereen SIE Schedule E Used to requesta change in depreciation or amorti anion methods Sereen ATT Explanations and Attachments Used to create and view cer tain to be generated by the software Screen ATT2 PLI La 12 amp La 23b Attachment Used to complete certain parts of Fem 3113 that require specific attachments and related crees contain Malthform eade text bos shown in Figure 45 page 7 hat allows you 1o link a scree or attachment oa particular Form 3115 M submitting mone than ane Form 3115 asigna code to each new appli cation you create in Drake The should be th second 2 and so on When using ther serens such as the ATT serens you ean use those numbers to indicate Which instance of Fom 3115 the or ATT screen should be associated with Moniy ons Form 3115 is being submited you do not need enter any NOTE mina io miom coeta Form 3115 Screens When you open the 3118 sereen from the Data Entry Menu the program displays the of ive SES serens These five screens are Parts 1 Form 3115 Paris Land Parts Form 3115 Parts I and 1V ALB C Form 3115 S
34. Sec on page 24 for more information field help F1 for mone information on the options available Overriding Other Setup Options Filing instructions federal and stat and envelpe covershci partnership IRS stat city and K 15 o partners can be either forced or suppressed frum the PRNT Sereen to override the global seting in Setup rate Manus Supplement Presse Filing In addition you can select Turn off autobalanc to disable the autobalance feature see Auobalance on page 31 and select Prepare Form extension if send ing an extension application See Filing an Extension on page IS The following program defaults can also be overridden fon the PRNT screen Date to print on reum Due date to prit on letter and filing instructions see note below Amount on Form 1065 puge 1 iem F Total assets IRS Service Comer A defaut due date for ling printed on eters and fling struc NOTE tensgensated won a retam You can oven duly en ng an amat date In The Due date to print on letter and Ming inst Beid Much ofthe information contained in the is also available from he field Javed helps within the program access a feldlevel help click inside a field and press F or ight lick in a field and select Help gt Help for this Field Electronic Filing Some partnerships with more than 100 partners are required to e file Form 1065 S
35. TE To ec We foran amended I edet Open Partnership gt Partnership K1 Amended steps 3 and 4 of Ba previous procedure Schedule L Balance Sheets Per Books Schedule L is nor required if f The partnership s total receipts far the tax year were less than 250 000 The partnership s oases at the end af the tax year were Jess than SI million Schedis K are led with the rtum and furnished to the partners on or before bz due date including extensions for the partnership returns The partnership is nor filing and is not required to file Schedule MY partnership mest four of these conditions go to screen and set Ves for lige 6 Because Schedules L 2 and Item L of Schedule are not required they will ot be generated with the return To faroe these ems to primed goto the PRNT screen and in the to Print section select Foree Schedules L M 1 M L Many ofthe four conditions are met select No for ine 6 Schedles L 2 ana lem L of Schedule K required and wl be printed with the retum Flow of Information Many entries made elsewere on the return for example inventory information on sereen A flow to the generated SchoL Dapreeiable asset information intangible Assets and amortization fom te 4862 aiso low o Schedule L Direct entries on sereen L include beginning and end of year Cash Trade nates and accou
36. TE 1 ie poran ston on eterna Printed Data Summary of Change in Ownership worksheet WK_POWN is generate listing al Farners ud the ownership percentages and changes IRS K 1 Codes A code sheet can follow the printing ofeach Form 1068 K to the taxpayer inter the various codes used on Schedule K I To have this sheer printed with all K 1 Schedules ftom th Home window of Drake go to Setup Options gt Form amp Schedule Options tb and mark the Print Page 2 of Schedule K 1 check box The oes cun also be printed oa a return by rerum basis by marking the applicable box on the PRNT sereen The code sheet is also available from Tools gt Blank Farms epp Cade sheets are not displayed In View mode Ifthe 1085 is NOTE selected tor printing tia printed trst folowed by the statements per taining to hat 1068 Trese are followed by ne code sheets The Schedule K L may include asterisks wih etter codes An asterisk with a letter code indicates that multiple tems hav that eode or thata Sbtemen is required for he code Anasterisk atthe botom afa group indicates there are mor items than can fit nb space provided for that group and attached oe that the tate ment i required as in the case of obe amount Returns with Numerous Partners For returns with a lange number af partners you have the option of deactivating caleu lation and printing of the while working Form 1063
37. a New eae for ene rate Manil Parere Unlimited Forms 2848 You can now enter an unlimited number of representatives n the rodesigned 24 sereen when filing out Form 284 Power Aor When you nead another 2848 Eroen to ener information oa another representative press PAGE DOWN Estimated Taxes Screen The ES screen has han redesigned this year to provide a way o e file state estimated vouchers and paymems which is required in some stats The functionally of the feral section af the ES screen is unchanged other change is for estimated taxes ftom multiple states o cities Rather than fill ing several State City sections on the ES sereen now you press PAGE DOWN and atia new ES sereen For details on using the enhanced ES sereen for fling federal taxes and on ling and paying state estimated taxes sce Estimated Taves beginning on page 183 of the Drake Sofsare Users Mannal Tas Year 2014 Safe Harbor Elections A chock box was added to sereen 4862 to apply small axpayer Sae Harbor election toa building ise inthe Deseripton field An election statement will be produced and the building description as entered in the Deseriptlon field wil be included in the election statement Two other elections now available fon the Election drop list on the ELEC D de minimis safe harbor election Soe 12600 Election Ses Saft Harbor Elections oa page
38. a page 65 Ite return contains more than one Form 3115 and multiple instances of Schedule E mali code fields should contain numbers Figure 33 Shows thar the ind instance Schedule E to be associated with the second Form 3115 in the rerum el Figure Example of hin instance of Schede E obe oad Completing The 311E sereen consists of four sections Schedule E Schedule E Line 4n Emer information on the type of property the was placed in service and the property s we Dre Manual Suplement Fares Form 3115 Application for Change in Accounting Method Schedule E Change in Depreciation or Amortization This section covers AN Schedule E tems other than ines 4a and 7 Note that Hnes Sand 6 are links to Schedule E Line 7 Present Method and Schedule B Line 7 Proposed Method For the ine 7 sections enter information on the Present Method and Proposed Method in the supplied txt boxes and choose the applicable conven tio from the Applicable Convention drop list Options are as follows My Have MM fimo MQ Attachments Attached statements are required for many Form 3115 items Depending the nature atch you wil atach statement to the form in one of vo primary Ways From Data Entry The ATT screen 8 the most common sereen far attaching Statements to Form 3115 The sereen
39. an interest af 20 more or owned directly or indicis an intrest of 30 ar more in profit los or capi in ay foreign or domestic partnership or ia the beneficial interest of a wust use the Line b setioa of Sereen Bao enter the entity s name EIN type country of organization and mani mm percentage owned in profit os or capital M question 6 on screen is answered Ves Schedules L MI and Seton Lor Schedule K L are not required and therefore not printed The Four conditions that must heme in onder o answer Ves to this question The partnership s total receipts for the tax year were less than 280 000 2 The partnership s total assets at the end of the tax year were less than 100 000 3 Schedules K are led with the reum and furnished to the partners on or before bz due date including extensions for the partnership reum Abdio norman Dese Supplement Parone 4 The partnership is not ling ans nt rud to fle Schedule M TIP You can force these schedules to be printed from the screen Tax Mattors The designated Tax Matters Partner TMP is the partner who s available to discus Partner information with the IRS TMP information is printed tbe bonom a page 3 of Form 1065 In Drake the default Tax Matters Partner is partner 1 he first parer on the Kl sereen designate a different partner go to screen Band complete to Parner ld in the Matters Partner section the
40. are New in Drake far reri gare 2 Denke ilie Partnership Form 3115 Change Form 3115 Application for Change in Accounting Method is now eligible for e file See Form 3115 Application for Change in Accounting Method on pape 5 Tar details of using the Drake screens to fle this frm Business Activities Statement Business Activities Statement sereen BAS has been addo the 1065 package that allow you to break down a partnership s Schedule K items by business activi amounts and totals nm the BAS sereen do not anywhere in the respective business returns but do provide statements you can use as a reference when transfer fing these amounts into the partner s 1040 retur A statement by business activ ity is also provided Figure 3 a gare Activities Steet n he 1065 package The statement sisted in View mode as WK BAS The worksheets fr the individual partner s Schedules K 1 are isted as BAS New ACA Fields on Form 8941 Feld wore add to the of the B941 screen to allow you to complete the vo now ines at the top of Form 8941 Credit fo Small Employer Heal Insurance Premi These new lines add by the IRS determines if employer provided heal eare overage its employees as mandated by the Affordable Care Ast and determines if The Business is eligible use Form th
41. ate els see Figure 1 on Fage 35 For rental properties with mare than on other expense double click the Text box on be Additonal other expenses line to open a Detali Worksheet Eater Dre Supplement Pre Acton description in the Descriptio field and an amount in the Amount The shaded indicates a was entered EE Figure Sereen ABAS eis for line 15 Ob expenses M ON NOTE epar ne aannam aaa sro pon Totals from the worksheet flow o Form 825 and a statement from each property is into wih the rem undis to he IRS when the return in transmitted Ener rental income the partnership receives on the KIP sereen This amount inetd 10 Form 825 ines 20a nd 20b No entry is required on the 8838 sereen Viewing Rental Activity Information Rental activity data viewed on he HOS forms and accompanying statements DS Form For 8825 can contain information for p o eight renal activi ties If mose than four rental activities are entered a second page of Form 8825 is genero If more than eight rental activities ane entered a second Form 885 ix enel data for rental elites 91 8 View data for renia Figur 19 Multiple 2S pages are credi more ih rental actos NOS Statements Statements a titled STM where X equals Ato H forthe fis 8825 Far example the for the first and sec
42. be completed Tor Part 127 Dre Fares Farn 311 Application for Changin Acting Mali Schedules A B and C Schedule A Schedule B Schedule C Use the C sereen to complete the following sections of Form 3115 Schedule A Change n Overall Method of Accounting sereen covers Pat Change in Overall Method Schedule B Change to the Deferral Method fr Advance Payments Schedule C Changes Within the LIFO Inventory Method sereen covers Part 1 General LIFO Information and Part Change in Pooling Inventories Sehedue A Part iI Change to the Cash Method for Advance Consent NOTE requires atiachments and i not addressed on the A This section required for al applicants ing to change their overal method of accounting requires the entry of amount as they were at the close of the tax year Preceding the year of the requested chang Leave any inas hat aren t required tor the any application NOTE Erue amount noetscust e 1 he change o of account ng tor example amounts that correct a math or posting ea or iat oec eror n along tax lab The IRS requires a worksheet far ines 1a 1e d Le and FoF Schedule When you enter an amount on any of thse lines in Drake a worksheet is automatically opened allowing you 1o begin entering the descriptions and amounts of maltiple tems Tar the workshoee When you close a CTRL W worksheet the p
43. bottom of the sereen Note tat most fields inthis section overrides there no neod to emer additional information unless the pari information dirs rom what i provided on that partner s KI screen you don t kow the partner number click under the General tab of the Data Entry Menu An Existing Forms List see Figure 9 displays all with their numbers State specific Information Resident The program automatically generates a return for the partnerships resident state Use Stato sereen 210 enter company information as Should apear on the state etum Access Sereen 2 fom the States tab or enter 2 in tbe selector field and press ENTER NOTE tomaten feias on sereen 2 apply io me resident Company information includes the type of retum that applies for state purposes con solidatd compost consoled group multi state and state specific dates and mum ens far Contact trees contact information required for state purposes is different fom that entered Information cn screen lis sereen accessible iom the States tb for the alternative data for principal place of business Books in care of and general contact information far the partnership s contact person Dr e Manual Sagplonen Primer norman OtherStates Data for other states must be entered in state data ety To aces data eno select the State ab the etum men and select the desi
44. chedules K L and otber related forms and schedules For other partnerships fle is optional Steps for e filing Form 1065 are the same as fo e iing 1040 with the excep ion of Bankruptcy retum which must e paper filed For detailed instructions oa fling tus in Drake see Drake Sobre User Manual Tar Year 2014 Additional Return Types Year Initial Return The following social types of business returns can be eld using Drake Returns for entities using a 52 53 weck year Shortyear retums Inactive retums For information how to indieate short year return in Deske see Short Year page 6 To electa 52 83 wedk yene a mew entity one that has never flad a return must enter dats on both sereen Y and the ELEC scien Toaleta 2 eek year for any ety 4 calendar year section af sereen 1 enter the Fiscal year beginning and Fiscal year ending dates Use MMDDY YYY farmat as shown in the ex De in Figure 26 on page 42 2 Mark the 52 53 week tax year box icri ing Dese Moms Supplement tnat has retums h past must complete steps 1 NOTE and2 process An entity that has never fled a return before must ore i tape 3 rough 3 Click the ELEC Sereen link to apen the Election Options sereen Figure 27 ison Opens mlman 4 Foe ine t select the month in which the 52 53 wesk year ends f r the current fi
45. co and tn tne prora c seco ATA and Reguatonsecton TZ Schedule D Use the D H sereen to complete Part Method of Cost Allocation of Form 3118 Parti Schedule D Part s rogue for any entity submitting either Part Lor Part Sereen consists of the following sections Socton A Allocation and Capitalizstion Methods Section B Direct and Indirect Costs Required to be Allocated Section C Other Casts Not Required to be Allocated Section A Click the Attachment link Figure 30 puge 63 to a description ofthe present and proposed methods used capitalize direct and indirect costs Dre Manual Sgplomen Pares 3115 Application for Charge in Acn a Figure Sh Listo ATT cre atch semen Sections B Seton Band C consi ofa ie of drop lists under a Present and a Pro and poned column Present sofers 1o curent accounting method While proposed ee tthe epenn cane neocon rds You adi ny fs scemar donec mes cin any m lr wich a aa or cul For each enin cns Band C go x Sees X I you salect X e cormesponding box an Frm 3115 wil be marked ith an X See Fme 31 Select you select B corresponding box on Form 3115 will be left blank am an wil be required explaining why he line was lef blank EF srl ule weil tenens ato noting you elo nih ot abo
46. d allowances an the INC ven Tre IRS not require a detal Cr worksheet or grose NOTE youre usg eal tance do Tat include etl worksheet ra Ene orforan oiher ine it ee ot regure a deiat works Cost of Goods Sold Form 1125 A For cost of ood sold nis complete sereen A Farm 1125 4 Cost af Goods Sold On sereen A tene 9a trough ot are ret any teias ana low tne NOTE format af IRS Farm 1125 A For more information on completing hese heids preas F1 connue IRS scons comen Dese Manus Supplement Parier Inventory loventry amounts entered on lines 1 and 7 of sereen A automatically low to Sched eL 3 Inventories Not that the inventory fields on sereen Schedule L Balance Sheet Asses are overrides entries here override inventory data frum Line 5 Other Lines of Form 1125 A is designated for any applicable costs mat enter on e previ Costs ous lines In two fields oa sensen A are provided Tor line S one far other costs including depreciation and one for other costs excluding depreciation Figure jeld enter any depreciation dat relates to the cost af goods sold unless the amount is flowing fram the 4862 Detail sereen with COGS selected from the Far drop ist Note thar this field on sereen A is an override lan en here overrides the calculations fam the 4562 screen Amount enero in this field auto matically adjust the total depreciation that is carried to page 1
47. e 38 Figure Wi conce mum is eolus are out of balance In adition to roi and debit totals he main trial balance worksheet shows the net income loss to be calculated for 1 of Schedule ateral ntes and adjust mnis are made inthe software see Figure 38 NOTE me asta cannot be impone it he worksheet i out af balance Dre Manus Supplement Parere Importing Trial Balance information Saving a File To save a fie click the Saye icon or select File gt Save from the memu ar To rename le when saving select File gt Save As In Windows 7 and Microsoft click The button in the upper left ana tben lick Save or Save As For more informa tion on fle names in the uial balance program see Naming Convention on page 48 Importing Data into a Return NOTE mtn n peyan inann ied det nto retur Far Condos on Once tal balance worksheet has ben set up for a client in Drake the balance information can be imported into the program and caleulated into the return you are ready in the Tal Balance Import far tne selected retum NOTE Balance Import widow in Drake and slart at Step Te flowing procedure To import a wa balance into a retum Open the rerum o which you will import the rial balance information 2 Click Import gt Trial Balance Import fom the menu toolbar The preliminary Trial Ba
48. e Oe buton n e uper let nd ancl he Ern Oplon bona attt o in f Eat che rie m an o Ope om a erae NOTE jen sot tat Gentar ton ear ban ee Tt Crater Sating buta Sc Mac Setinge Prima ton elt en Deae d macrot wh nothin Cet ar hes Disable Autobalanee When is disabled tb program is prevented om automatically adjusting the year end retained earings or capital amounts is allowing you to se any discrepancies in the balance sheet To disable auto balance goto the PRNT screen and select Turn off autobalanee Figure 31 o pages Manus Importing Trial lace ema aras t Force Schedule L By default the program does not display the balance sheet amounts on the rerun if the eni does not meet the fling requirement Iis The case you need to override the default in order to have the amounts shown on Schedule L To Torce the Schedule L amounts o be printed go to the Sereen and select the Force Schedules L M 2 amp Kei Section L bo eeen meee eeraa gare 32 Foree Schede L box far 1065 package Check for Detall Worksheets The tial balance import allows only those detail worksheets required by the IRS Check updated tms for detail WI worksheets that are nor required Fr example the IRS does not ege a deal worksheet fr the Gross receipts field on the INC screen ifa has a detail worksheet for that field th
49. e REOS do not enter the depreciation on the 818 sereen Depreciation should be entered only itis gure outside of the Drake program and then the net should be entered on screen BIS The ammount entered on line 14 is added to depreciation caleulated rom the 862 screens NOTE For assets placed in service during ne year Form 4562 8 required Carrying To indicate that the information should be carried to Fo X825 sleet 8825 fom the Information For drop list on sereen 4862 Figure 17 IF there are multiple MOS screens use the to Form 8825 eode box For information oa using the Muliform code see the Drake User Tax Var 2014 Ce m ai atro Figure 17 t is ccm program cas he 462 information Ag depreciation information entered on the 4862 sereen is carried to the correct Form 525 based on the form nd multi fom code selections at the top of the 4862 ded serens Vhen selecting a mutum code note tat ie code Shadia elar o 828 sereen ROS m FOr Sample daa trm me mara 28 screen we gener adco frst Form 8825 To associate ott wi IMPORTANT ferma yarecitonere tren ut tar nine code box For more tematon Fam 825 Renal Av raton an pags o Line 45 Other Expenses list For rentul properties with an other expense line 15 enter the amount of guaranteed payment or sil and entertainment in the appropri
50. e Taxes Paid oa Cer tai Employee Tips Form 8881 Credit for Small Employer Pension Plan tap Costs Foem 8644 Empowerment Zone Employment Credit Fors B912 Credit to Holders of Tax Credit Bonds Form 894 Credit for Small Employer Health Insurance Premiums Elections The ability to make certain tax elections included in the Parmensi package Elec tions are selected from the Return Elecions section of the ELEC sereen Figure 21 7 E Making an Election in Drake To indicate that patri is making an election 4 Open the ELEC sereen from the Miscellaneous tab ofthe Data Entry Menu 2 Make selection fom the Election drop list Figure 22 ADEA Sn SHEE nea Fare 22 drop lin 3 Complete all other lds as applicable Press F1 in any feld o is quite for your selection and the type of information that may needed For expe the help text for the Date or pearending fela Figure 23 on page 38 Shows that field only far election options O8 11 13 IS and 21 nd it explains what specifically should be entered for cach of these elections Dese Mom Supplement Parere Figure 29 Mely text for Date or year ending eld on ELEC sereen Ifthe clacton option you selected not isted in the help text for a feld en that fed shouid e et blank For example f you chose NOTE lection General Eecton Statement you would not need to Ene
51. e wa balance will not import cot rcl into the reum Detail worksheets are indicated by red shading shown in Figure 3 Remove unnecessary detail worksheets prior to import See Detail Worksheets pape 49 foe more information on using detail worksheets in the tial blanco Preparing Financial Data for Import To prepare the financial data for importing the return the data must be entered iato Drake s specially designed wial balance template Once this information is entered and saved it can be impor into the retum Openinga The first step in preparing financial data for Template plate for the reru sd ener the facia dia is to apen wi balance tem porting Triat Balance own rate Manil Supplement Parner To open ial balance template for a reum 4 Open the return to the Data Entry Menu 2 Click Import gt Trial Balance Import in the menu toolbar The preliminary Teal Balance Import dialog box is opened 3 Click Create New or Open Existing If opening an existing ile click Open after selecting the corect fle 4 Click Enable Macros in the Seeurty Warning box dot appears In Excel 2007 and 2010 you may see Security Warning message NOTE than options itor Options to open Security Options slog box hen seec Enable this content OK In Excel 2013 ick Enable Content The wa balance template is displayed in Microso Excel Naming Whenever new template i opened the tax soft
52. ebedules A B and C Dre Manual Suplement Freie 3115 Application for Change in D LI Form 3118 Schedule D Parts Land D II Form 3115 Schedule D Part II As shown in Figure 45 you can access these screens by clicking link at the tp Of any abor MIS ccn een D The next few ofthis document provide fr completing the vari serons fr Form 3115 including Schedules A through DI Parts Land Use the Parts 1 II screen to te the following sections af Form 3115 Genen Information Pat Information Far Automatic Change Request Pat Information For Advance Consent Request NOTE formaton shoul ve meii ether e Part section or the Pati General Complete all applicable fields in the General Information section Not thut the Information for business activity and change are override Hels Figure 46 Con plete tese fields only if you want io override the equivalent information entered on Seren 1 or sereen K Form Change n heute aot T a ai a she Type f accounting method change being requested line select on ar amortization or Financial product andlor financial activities Lf request Form IIS ction for Change in Accounting Meth Deae Supplement Parier Part ing another method describe it in the Other text box T
53. ences To the corresponding statements Note that an o fileable STATEMENT i referenced in the reum Figure 15 Figure 15 Dain Caren Assets fm the drop 1 cen 5 willbe ached Typically one or more SCH2 derail screens are nese for Schedule L items using Drake s tal balance import feature be avare that SCH2 data cannot be entered directly ito the ta balance Woekset as canto he ipod into the data SCH detail must be created apart from the Balance worksheet When the retum is prducod Schede L reflects the amounts imported from the ti once worksheets where direct entry was allowed For more information see SCIL Deail on page 33 rate Supplement Presse Schedles concio Autobalance Autobslance fores Schedule L to balance for bth the beginning and enda yer amounts The program adjusts the capital account on Schedule L by the difference the total assets and the total and capital the adjustment Example If Assets 1 000 and Liabilities and Capital 900 the program Increases the puters capital accounts by 100 To deactivate his feature for a specifie etum po to the PRNT sereen and select Tura ott autobalanee Schedules M 1 M 3 Reconciliation of Income Schedule is roquired if the balance sheer teal assets at the end
54. ens Screen Information a a Moral norman Deae Supplement Parere 1 APPT Sciens Screen Information LUTTER etis sect ain armen ire LEONE Ton s i Tie Ending mount entre on the Property and Addition Property NOTE in Drakel became the Beginning amount for property on the APPT screen when the client s rem is ded in Drake l4 You may enter up to four states on one APPT screen If you end more than four states press PAGE DOW for a new APPT sereen The same state can be entered more lan oce when additional ld are need Select OT Other Reconciliation ftom the State Selection drop list when using the reconciliation worksheet Not every item appearing the federal reum may be sub ject 1o multi state apportionment When you select OT the data entered becomes a Tecenlig adjustment amount t aid in tying othe fodera retur Enter as much or as lt detail as the states require Ifa state does not require any information to be entered information ll to that state s retum Other Information and Overrides Use sereen 1 10 enter the following additional information Resident State Ifthe partnership has mailing address in ane state but does busi nes use the Resident State drop list to est the state in whish the part does business Drake Codes and Overrides For information on mi
55. er as either Generat or LLC member manager or Limited or other LLC member default is General On line H select either Domestie partner or Foreign partner deu is Domestic From the line I drop s Figure 11 choose the type of partner not the type of pari nership IF this box ts lefi blank he program uses the of Individual ke par is a retirement plan IRS SEP Keogh t marke the 12 check os Figure Kot Partner Type Shed for 1045 Partner Information Drake Supplement Parere Ownership Changes AIL ownership change information is entered onthe OWN sereen which is accessible ftom the General b ofthe Data Entry Menu To use the OWN sereen At the top ofthe screen enter tbe date the profit los or capital interest in the parinership was exchanged by two or more partners profit loss and capital are AL involved in a transaction put the dat i he Praflt Lass Capital el only The Loss and Capital ls are override fields provided in ease the less or eapi tal dates are dierent Inthe Change in Percentages section select the applicable partner fom the drop list The drop list contains the names and ID numbers entered on cach Kt sereen Enter the percentage changes in profit los or capital as positive amounts for inoreases and negative amounts for decreases Se help fae more infor mation additional ownership changes press PAGE DOWN NO
56. ercens 8 and 9 Taxes and Licenses Use the DED sereen to enter tax and license payment data Amounts entered here flow tothe axes and licenses line of Fonn 1065 Dia is also generate on the PTL worksheet in View mode of the retum Credit rom Form 8846 Cred fo Employer Socal Securty and Med NOTE care Taxes Paid on Employee Ts auomalcaly adjusts mount of aes ana lenses on Form 1068 State tax amounts income tax tax entered on the ES Estimated Taxes seren are carried to the ax computation TAX worksheet The siste tax amount fom the ES screen may differ depending on which method o counting eash o accrual is usod and which tax i selected Interest Tho Interest line of Form 1065 refers only to the interest incurred by the partnership ina ade or business activity that not claimed elsewhere in the etum Use the DED sereen to emer expense on the following ores expense amounts Do not include interest Debtrequied to be allocated to the production of qualified property De usod to buy rents property or debt used in a rental activity Deb sed t purchase property held Debt proceeds allocated to disributions made to partners during the tax year Soltchanged interest rules sce Form 1065 instructions do not apply if partnerskip lots under Reg section 1469 7 to avoid the application of en IF the partner Ship is making this election statemen
57. ers Partner Overrides Foreign Addresses Kel Export Supplemental formation Partner s Basis Worksheet Special Allocations Domestic Production Activites Daduetion Kl Cover Letters Schedule L Balance She Flow o Information Te SCHL Sereen Schedules 1 Reconciliation of Income Schedule Schedule M Schedule M 2 Analysis of Partners Capital Accounts Rental Activities Line 14 Depreciation Line 15 Other Expenses ist Viewing Rental Activity Information Self Employment Income Credits and Adjustments Elections Making an Election in Drake Election Statements Safe Harbor Elections Mokinz Changes on he Fiy Suppressing Forcing Documents Overriding Other Setup Options Electronic Filing Adio Rerum Types Common Error Coler Binary Attachments The PDF Attachment Process Importing Trial Balance Information Por Books rate Suplement Pre Tabte af Cones Preparing to Use Trial Balance as Preparing Financial Data fo Import 7 Saving File si Daia into E Special Conditions 2 Form 3115 Application for Change in Accounting Method 255 Accessing Seren for Changing Accounting Method Farm 3115 Sereens Schedule E Athen Appendix A Trial Balance Import Index Tief Cones Dese Moms Supplement This page intentionally ef blank Partnerships 10
58. et appears on either e EIS sereen i real estate rental or the RENT sereen if fatal ober than rel ostate Because the tia balance worksheet has only one detail sereen per rental type the importing function does not accommodate with multiple renal properties or expenses however he following procedure allows he ril balance to remain in bal nce if thene are mule rental properties or expenses To accommodate entities with multiple rental properties ar expenses Calculate the totals f r both types af rental expenses 2 the income totals on the rial balance sheet and the expense totais on the applicable deal sheets Figure 43 rate Manus Suplement Preise Form 3115 Application for Chang in Method 3 Ensure that the balance sheet isin balance Import the uial balance worksheet into the reum The applicable screens in data now contain the figures entered on the tial bance worksheet 5 Compare the N 1 n 1 amount on the rial balance to the M fine 1 amount on the calculated rerum o ensure that they match Lo Mete amounts do ot match review amounts to ensure NOTE thatan data was imported tf te data appears to have been imported an adjustment could be necessary 6 Compete all 825 or RENT sersens in data entry as applicable for the individual properties or ems T Delete the BIS and RENT that were importo om the uia balance the screens reflecti
59. following parts of Form 3115 Schedule D Change in the Treatment of Long Term Contacts Under Section 460 Inventories or Omer Seton 263A Asie Par Change in Reporting Income From Long Term Contacts t Par I Change in Valuing Inventories Cost Allocation Changes tan erity is curent using a LIFO inventory method ar submethod NOTE changng ater LIFO inven meted or submetnod Part Tof Schedule Dis not applicable Use Schedule Changes Wiin e LIFO inventory Method instead Schedule D long term contract refers to any contract for the manufacture building installation Pari or construction of property that i not completed n the tax yer in which it entered iuo Answer the questions in Part 1 that apply to he eni s situation Schedule D This section concerns changes in the identification and valuation methods af invento Partii Hes None that some lines require attachments To access the ATT sereen and complete statement click the desired attachment ink The items on this part of the sereen match the items on the actual Form 3115 Sched For infomation on completing individual ines ee the Form 3115 instructions M the entity is unable to turish af Form 970 ine 5 the attach ment must Include allowing statement NOTE tet matto te best ot my nowiedge and bela name ot appa property he LO ventory mona by ng Far 970 wh t Cet rte Tae yer ened i
60. for a new SA sereen Mou have your program set up to tke advantage of grid data entry you can easily enter amounts in many ofthe mostoften usd ines of a Schede This method is Trtculrly useful for partnerships with a Iot af pater Fit initiate grid data 1 Retu to the Drake Home window 2 From the menu bar select Setup gt Options open the Data Entry tab 3 At the boom of the left hand column select Use grid data entry farm avaliable sereens Click OK Now open return and Bon the Information section ofthe General tab select KI Schedule K 1 Partner Information to open the data entry prid To make cotes in the grid Selecta partner and click in one of the fields where you wish 1o enter an amount 2 Type in an amount that partner for that column Scroll across to moe columns and make any entries needed 4 Press the DOWN ARROW to make entries for otber partners 5 To open a parner s KI sereen and make any other ens click Mem Detail 6 To return to the grid close the partner s sereen You can arrange the grid by ID number by partner s name or by the amounts in the columns of the grid by clicking the column headers To allocate section 754 depreciation among specifie partners 4 Indicate an amount of section 754 depreciation using either but not bat of the following methods On sereen A862 select 784 om the For drap list Dre Sgplonen Pares Sele f
61. he text box is limited to 20 caracters For advance consent requests state in tha Other text box the type ot method change beng requested a shart deception fe change NOTE eee LFO te FEON For automatic change requests tese informational requirements are by property completing Pari Ines and 1b of Form 3115 From the drop list on line La choose a Designated accounting method change num ber IE the method is not isted enter the method on line Ib in the Other text box he RS Rev Proe 2014 16 to expli how poen es sun change i cols in order vith prone af he dcl Rex Sis IMPORTANT Re ea on waaser an sa u aiea ena malade hehe disponon eger inanir coon wih eat of capial er oscuros include Drake s Base aile 13402 For information on the Drake Knowledge Base sce Chapter 10 of Drake Users Many ofthe scope limitations o section 402 of Rev Proc 2008 52 apply mark the Yos check boxon ine 2 m maga Nios acres erred ated IMPORTANT yor anes Yu on ie ou ication or At Rea ce he See Fom 35 rasoir o ore maton Anter answering 1a Ib and 2 in Part 1 Information for Automatic Change Request click the blue Parts IV tab atthe top of the screen Part IL Information for A Requests ans
62. in the no specify the beginning and ending dites in the ot calenda Years year section of sereen 1 Short Year partnership may have sboreyer reum if changing accounting periods with IRS Returns approval Form 3118 or this 1s first or ast year in business and the tax year is ota fl year To indicate short year return use the fiscal year dae elds on sereen 1 vo indicate e beginning and ending dtes for the curent yea These fel should nor bowed if theca s nga fll ealenda year reum For more information on shortyoarrelums see IRS Pub 4163 Tha program may not careci auta erection or NOTES Dae aaaea ana Darraraten ira aat en kaen an be manniy enteres on screen or soena 87 8 anda Boxes A through J Ente most information f r boxes A through of Form 1058 on sereen 1 Not that boxes D Employer identification number F Total assets and Schedule and atached are completed automatically based on infomation entered else wherein the program Orher boss are Box A Principal business aetivity Box B Principal produet or sevice C Business code number Press CTRL SHIFT S to search activity codes Box E Due business started em G titi final or amended return address or name change technical ter technica termination occurs whan here has been asale or exchange NOTE 4 mre otie interests i partnership and pote winn a 2 On sereen
63. ion sereen B going to the screen and entering the name and title of person signing the an ry here overrides both sereen Band the PIN sereen nothing entered n any af tne feias referenced above te program NOTE nama ot s panner on rte sa Producing defuit has been setin Setup gt Options gt Optional Documents ib to produce Letters fora cover leners with all retums you can enter the name and title af the person Who Single vir be signing the K 1 cover letters by opening the return opening sereen KIL and Return entering the name and tile at the bottom on the sereen Editing the As with ee letters provided by the program you ean edit the text to suit your office Ket Lotter peod and style Review folowing sections af the Drake Sofware Users Manual Tip 7er 2014 ttre meling changea to teter elt inredueton to Letters in Drake in Chapter 2 Installaton amp Setup The Latter Keywords secon of Appendix B Keywords To adit the text ofthe leter 1 Fron the Home window select Setup gt Communication Editor The Client Communications Editor is displayed 2 Select Open gt Partnership gt Partnership K 1 Cover 1o view the template ofthe partnership K leier 3 Make ay desired changes to the template Dre Manus Supplement Presse Schl lance Sheets Per 4 Click Save For an amended reum the K 1 Jeter automatically refers to the NO
64. lance Import dialog box s opened 3 Click Next Enter select the il balance eto be imported Use the Browse feature if nec essary By default each vial balance file is an Excel als showing the client Tame and ending in for trial balance as shown in the example in Figure 30 See Naming Convention on page 4 im em pm Select the Trial Balanee Additional Import Options See Additional Import Options following this procedure 6 Click Next and wait for the import to be completed chek The program tums to the Data Entry Mews fr tbe open etum Note that all selected data fom tbe ial balance worksheet has been imported into the retum This in be seen both in the data entry screens and on the generated retum Importing Triat Balance Information Drake Manil Supplement Parr Additional Import options defui he program imports the following additional information when importing be uial bance data Buildings and other depreciable assets Accumulated depreciation Goodwill and intangible assets Land SEOS Rent information Accumulated amortization COGS depreciation Special Conditions Details for Preparers Some uial balance items cannot be entered into the rial balance worksheet and must De typed directly ino Drake dena entry Other teme should entered into the work shost for balance purposes bur ate not carried to data entry these must
65. ma mey rate Manat Suplemen Index Numerics A ren 5A 23 25 aide font cde 22 B also adjusted basis workaheet Beck irene Seed M 1 31 32 lena year returne 6 15 11 61 ret formato or tte 18 rs af goods sld se Schol A Cot of Goods Sol Cer W eta worksheets 7 8 9 47 61 D Tor sont af goods sold Schede detmi Ces W worksheets 7 9 07 61 rate Spare User s Manual Supplement Parner Sla for orte 23 E Form 3115 Application for Change in Accounting Meth ETE Fass 52 and Amonization 34 39 S434 Work Opportunity Credit 16 orm 6765 Crt for Increasing Research Activities 15 Fors Again Auto Extension of Time om aam 16 Form S0 Orphan Drug Credit 15 36 Form SES Renta Real Esene Income and Espere afa Parmenbip oran 5 Corporation 33 36 Form SES Real 35 Form 29 Employment Cdi 37 Fors 846 for Employer Sacs nd Madi re Taes Paid on Coram Employee Tp 11 37 Form 5864 idee Fae Credit 9 36 Form 87 Eset Income caso 15 Form RS ele Spare Authorization fur 1045 16 Cont Form B90 Domestic Production Acie Deen 27 Form 912 Holders of Tax Bon 36 Form 912 Credit t Holders a Credi Bomis 37
66. n sereen 1 select he Resident state drop et Force Printing Schedule M 3 Page 1 of Schedule M 3 is required if te balance sheer total assets at the end ofthe year or exceed S10 million and pages 1 3 of Schedule MS are required if the total assets equal or exceed 50 million If the corporation s assets do nor equal or exceed SO million but you want to voluntarily file Schedule ae if the corpora tion s sets do not equal or exceed 550 milion and you wish to the compete M2 goto screen and make Selection from tbe Voluntary fle 3 drop li Choose to print just pape 1 of Schedule or the complete Soe Schedules M 3 Reconciliation af Income on page 31 for more details on these schedules Missing ID Number In the past if the partnership received a Schedule K 1 ftom a partnership and the part did not have an ID namber for instance ifthe partnership was cin and 4 not bave an EIN den you yped FORET GNUS into the Partnership EIN ve KIP sereen Figure 2 on pape 3 If the partnership bad applied or an SSN or EIN bur had not yet received ID number then you would have typed APPLD FOR in the Partnership EIN feld Now to help avoid a data entry eror that might loud toan IRS reject Deak will auto Partnership EIN cid Type F into the Partnership EIN fcd and FOREIG NUS is automatically entered or type A and APPLD FOR appears Dre Manual Suplement Farmers i
67. nce Enter the total deductible in the Partner s health Insurance field on the DED seven 10 Use sereen KI line 13M of the Part IM K t Direct Entries section to allocate deductible payments for insurance that constitutes medical care for a partner ora Partner s spouse or dependents Figure 7 These amounts low to Schedule box 13 and are included in the amount in box 4 ofthe partner s Schedule K 1 For information on the partnership s convibution partner s Health Savings Account HSA sez Notice 2005 8 2005 4 R B 368 Repairs and Maintenance Use the DED seren tu enter tbe costs of teas and maintenance Sae Form 1065 instructions for IRS requirements regarding costs that can be entered here rate Manu Sagplonen Parme Income Deductions Bad Debts Use the DED sereen to enter the total debts that became worthless during 2014 year but only if these debus related to trade or business acti Deduct ible non business bad debts should be entered as short term capital louer on sereen s NOTE cannot tke bad debt as deduction unless the amount was pesousicduded In income Rents Use the DED screen o enter rent pud on business property used fra rade or busi nos activity IF partnership rented or lease a vehicle enter the total annual rent or as expense inured in the ade or business activity the partae and then complete Part V of the 4662 s
68. ndix A of Rev Proc 2012 1 for more Information For morean appicants who must apply or advance consent see IRS Form NOTES stisinstructons Taxpayers ing under an automate change request procedure do not aya user fo the upplicant qualifies for a reduced user fee enter a chock mark on Tine 28b and go soroen to complete th antachment information for Part ine 23b located in the bortom half of the sereen Include necessary information or certification requiod by Rev Proc 2013 1 or is successor Specife statements must also be tachedo return if the applicant answers Yes for line 18 s change request allowed under automate change or No for 22 of consolidated group us proposed method Press Fl in a specifie eld for more information requiemens The method for ataching sate mentia Deak is covered in Binary Attachments on pape 43 M requesting multiple automatic accounting method change requests Form SUIS po 10 sereen MIS and in the Part I Information for Automate Change Request section make selection fom the drop list on line a use the drop lists below ine La se Figure 48 page 60 to select account method changes being requested Form 5115 Again for Change in Accounting Method Dae Maa Supplement Parece Parts il and L7 Part Line 12 i Cl Fire 4B Making mpc mma met cheng eee On page 1 af Form 3115
69. ng the total rental expenses To delete a screen In data ent open the screen and press CTRL D I NOTE sm tpie terms iet appears ensure al e screen to delete is Selects then chok Delete Form 3115 Application for Change in Accounting Method Form 3115 Application for Change in Accounting Method is an application to the IRS to chunge either an eni s overall accounting method or the accounting teat ment of any item in Accounting Method is eligible jew f r 2014 Form 3115 Application for Chan NS Drake customers can fil out and e file Forms 3115 and related schedules and attach ments corporation tums This section provides instructions far completing this Form and related schedules and anachmenes in Drake In some cases Form 3115 must be papefid See Pars nd string on page 57 for deals NOTES Applicants fing Form 3115 shouid reter to Rev Proc 2015 13 or genera automati change procedures and o Rev Proc 2015 4 erat of automate changes to which automate change pro cadres in Rev Proc 2015 13 app Accessing Screens for Changing Accounting Method Several screens may be requiro o complete Form 3115 These screens are accessible ftom the Change in Accounting Method box located under the first Other Forms dab of the Data Entry Menu Figure 44 on pape S6 Form 5115 Again for Change in Accounting Method Dese Moms Supplement Codes Figur A Sereena for
70. not screen A only the line 1 amount calculated into total deductions Use screen 4862 to enter section 754 deprecatio To associate the depreciable asset wit section 754 select T4 Tom the Far drop at the of the sereen For information allocating Seton 754 deprociation to specifi partners se Sc tion 754 Allocations on page 26 Section 179 expense is not included an Form 4562 line 22 ois cud to ie Bf Form 1065 i reflected ine 12 of Schedule K and distributed to each fariner on Schedule KH To reclassify an asset from depreciation o amortization Open sensen 4862 for the asset 2 From the Method drap list select AMT Amortization 3 Complete the applicable fields in the Amortization ea the bonom left comer of sereen 4562 formation section acts Enter depletion amounts n te DED sereen Ifthe corporation clans a deduction for timber depletion complete and attach Form T Forest Activities Schedules Anach as PDF to filed See The PDF Attachment Process on page 43 Do not deduct depletion for oil and gas properties Depletion should be igure for each part come and Deets Drake Mana Supplement Parier Retirement Plans Payments to Partners IRA for Employees Use the DED sereen to enter amounts for line 18 Retirement plans et See the IRS instructions for guidance on what costs are acceptable for this line The ore reduces te expense based on
71. nts received bad debts US government securities tax exempt securities aans to partners mortgageieal estate loans depletable assets ad accumulated depletion Schedule L data would come rom the partnerships income statement bal ance sheet and equity and capial accounts The SCH2 Screen The SCH2 srcen is used to provide detailed information required by the IRS for cer tain lines on Schedule L This sereen can be used in place of the actual L sereen n Diske In other words if you use this sereen for al applicable lines on Schedule L aor neod o make any entries on L sereen To create a statement fra ine elec the ine fom the drop list see Figure 15 on page 30 and enter descriptions and their corresponding amounts Onee informa Schedule lance Sheets Per Books Drake Manual Supplement Partnerships tion is entered or if ational descriptions are required for the line press Pace DOWN to access a new screen Aline selections are cared to the nextyear program when the fatuma are updated Sereen deseriptons are updated bo NOTES esed amounts eared tone beginning otyear column To access tha SCH2 sereen from the L sereen cick the SCH2 Screen hyperinks on ines 6 8 13 17 0r 20 or cick msde a ld nd prese Cruz Statements The total amounts entered onthe SCH sereen do not appear on the L sereen in the SCH2 and Trial Balanco program They are however printed on the return where applicable wits refer
72. o 1085 Partners On sereen K line 13d code W Section 754 depreciation enter the amount of section 154 depreciation to be reported to the partners 2 Allocate the amounts You can do this using either the sereen or the SA sereen but nor bod Ki sereen On line 13 Other select ende W and allocate the amount of section 754 depreciation for that partner For any parine nt receiving an amount for section 754 depreciation the code and a 2n 0 must SiN be eter A statement will stil be produced for that partner SA sereen Select item 148 Line 13 W Other deletions fon the Allocation type drop ist Figure L4 Figure e Entering partner allocation information am the seren Domestic Production Activities Deduction partnership does not tke the deduction Form 3903 Domestic Production Activ is Deduction Instead the amounts pass through to the partners to report on their individual returns The partners use the information w calcule their eligibiliry for the For more information see the IRS Form 8903 instructions I Print 1 S903 worksheet for each partner not selected on sereen 8903 the amounts flow toin 12 of Schedule codes Q and R IF this os selected the information flows to the 1 903 which a referenced on a statement Code P is printad on ine 12 of Schedule 1 to indicate domestie production activities informi NOTES Line 11 income imation of
73. ond 828 screens would be bod STM RA and STM RB respectively See Figure 20 on page 36 Credis ond mens Dese Supplement Parier Self Employment Income Mark this box to include in self employment income is selected at the top of the BIS the amounts fim the 8828 sereen are included in the caleulation far line Ha of Schedule and flow ta each K I Sf employment calculations are shown on the WK SE worksheet generated with the retum Credits and Adjustments credits require an adjustment to either income or expenses Drake 2014 curries the required adjustments othe appropriate line of the return and to the MeL NOTE No agjustment cared to the M 3 automatically for 2014 Manually redoing the expenses deductioas or increasing the income fr these credits casses the rum 10 be of balance Adjustments are made to other income for the credit amounts or the following ered Form 6478 Biofuel Producer Crit Form B864 Biodiesel Fuels Credit Form 8912 Credit to Holders of Tax Credit Bande interest income Adjustments are made to the appropriate deduetionfexpenses for the credit amounts Tor the following res ocn 5884 Work Opportunity Credit onan 6765 Credit for Increasing Research Activities Foen 8820 Orphan Drug Credit Form 884 Indian Employment Cri Dre Manual Supplement Pre Foem 88465 Coit for Employer Social Security and Medicar
74. owever such a document ro the form as a PDF Directions for generating and attaching PDF documents can be found on the PDF sereen in Drake Software Directions for converting other types of documents ino PDF ane available by clicking the Sereen buton e top right corner of he PDF screen Copy print these instructions as desired Also see Binary Attach ment on page 43 of this document Do nat enter data on the PDF screen iseit tusing the directions pro vided on tnat sereen skip Step 2 whch mets to f Gut Col NOTES ins at he totom fie PDF screen A POF document may be attached using any flename When you itach he document the program automaticaly assigns ihe required by ihe IRS Dre Manus Supplement Tornei Form 3115 Application for Change in Aecounting Notices of Missing Attachments When the retum is generated an EF Atachnents worksheet is produced See Figure 6 This worksheet shows in table format the Reference section of Form 3115 the Deseripton and the Filename of each required PDF doci ment This worksheet is displayed as PDF in View mode vem d Figure S6 ale afan EF Aachen In dion o Form 3115 and related schedules and statements program produces EF messages as applica when the return is ealeulated arms sebedules EF messages and worksheets ase accessible fom Vie
75. r anything rio te Date or yearning feld elp text Figure 23 To open a new ELEC screen for an additonal election press PAGE DOWN Election Statements Once an election is made and the return is the election information is pro iced on a statement referenced STM EL XX where is the number of the lection For examples 01 General Election Statement is generated as STM Eron The statement includes the election title election wording and any additional information required for the eleetion such a date ammount or location for ledere sometimes included in the cal election statement other mes they are included as separat ines Signature lines are printed as needed on Safe Harbor Elections New Options on ELEC Screen New f r 2014 A checkbox was added to 4562 to apply a small taxpayer Safe Harbor election to building listed in the Deseriptlon An election statement wil be produced and the bulding description as entered in the Description field will De included in the election statement NOTE Thi Sate Harbor election covers buildings IRS Reg section IRB 2013 43 Rev Proe 2014 16 and Rev Proe 2015 4 for guidance other elections are now available ftom the Election drop list on the ELEC Dre Marsa Supplement Pre Soc 12630 LO de minimis safe harbor election
76. r prodct names mentioned in this manual may be ademas or ragistered trademarks of their respeetive companies rate Fares Tabte af Comes Table of Contents What s New in Drake for Partnership Returns Schedule K Schedule L and 2 Scbodle Missing ID Number Farm 3115 Change Business Activities atom New ACA Fields on Form 8941 Unlimited Forms 2848 Estimated Taxes Sereen Safe Harbor Elections Final Year Total Rounding Parner Updating a Prior Year Return in Drake Header Information Name and Address Tax Year Boxes A through T Income and Deductions Gross Receipts Con of Goods Sold Form 1128 4 Ordinary Income Loss Net Farm Profi Loss Net Gain Loss Other Income Loss Conpensaton and Wages Guaranteed Payments and Partner Held Insurance Repairs and Maintenance Bad Debis Rens Taxes and Licenses Depreciation Depletion Retirement Plans n Employee Benefit Plans Omer Deductions u Filing an Extension Signing the Return Amending a Return TEFRA ond Filing Eligibility 6 Additional Information Tatte of Comey Dese Moms Supplement Parier Schedule B n Sutespoifie Information Is Oder Information and Overrides 20 Schedule Partners Distributive Share Items Schedule K 1 for 1085 Partner Information Ownership Changes IRSK Codes Retuns with Numerous Partn
77. r the end af the ye To file 1065 extension use ane of the following options Go tothe 7004 screen in Drake Other Forms tab of the Data Entry Menu and select Generate an extension Complete any onher applicable fields on th sereen Go tothe PRNT sereen and select Prepare a Form 7004 extension Signing the Return PIN signatures are sequired for eed returns If o filing a return complete fields othe PIN screen feum cannot be cfled if tbe PIN screen is not completed including title and signature name of the general parer oe LLC member manage Ine return is prepared by a paid preparer the preparer must complete the required information and sign the retum in the space provided on the PIN sereen IF it is pre pared by a patr or an employee af the partnership sleet NONE in the Firm and Preparer drop lists on sereen T Ta have the preparer s signature displayed on the printed return Orbe scum preparer and ERO entered in Setup gt ERO ate the same Goto Setup gt Preparers and ensure that the Alternative Eleetronie Signa ture bon is markua far The preparer Complete the PIN sereen for the return the retum preparer and ERO are nor the same go lo the PRNT sereen and com plete the field labeled PIN for preparer s alternative eleetronie signature The PIN entered should match the one entered for the preparer in Setup gt Pre pareri For more information press FI in this feld Setup
78. ram uten ne with the SCH2 screen the type f statement produced by the program depends on le ne selected on the SCH sereen and the IRS requiements See The SCH2 Seren page 29 for mone information on how o use the SCHA sereen Schedule M 2 Analysis of Partners Capital Accounts Sehoule M is used to show what caused changes during the year in the partners capit accounts The amounts on Schedule should equal the ttl amounts in iem L of dl he partners Schedule K s Drake carries amounts in item L Analysis af Capital Account on the part nens sereen to the Fom 1065 Schedule M2 line 1 Balance at beginning of p Rental Activities Income and expenses for nemal real estate properties appear on Form 8825 Renal Real Estate Income and Expenses of a Parinership or an 5 Corporation To make tos in Drake use the BIS sereen M thare multiple 8825 properties press PAGE DOWN far a mew MIS screen Use one sereen per rental property cum has more than onc BRS screen he program Renta rate Manil Suplenen Parr reports each property s information ona spurte column f Form 825 Data from all EIS screens are transmitied to the IRS when the retum ie S sii anmaim E ug the il wae frm NOTE Enana mar oma Line 14 Depreciation Mne program is calculating depreciation entered on the 4862 screen for the property listed on th
79. red states Tr espe ie serens or type the two letter state code in the selector and press ENTER Multi State payroll am property factors de APPT Apportionment APDOr sereen uses om the States ab or by entering in the selector Teld and Monment pressing Esta This sereen igure 1O provides one ceal location Tr entering all information of having open cach needed ear addition to making data input faster and easier this feature provides two wark sheets a summary worksheet SA SUM tat can be used for verifying input and a reconeltion worksheet SA REC that Ties the total of the state amounts to the fad al reram figures These worksheets available in View mode The individu state apportionment screens will continue o be available ia Drake14 but will be used to override data emered on the APPT sereen o Sate eportonnen Sum Factor I ED O sereen Mark the Zero Apportionment check bax Figure 10 to add a state but NOTE tintus any anportonment data incide state on he apportionment summary worksheet SAC SUM though Vi mode APPT Screens The APPT screen is opend to the Sales tab Links at the top of this screen take you to the Pavo Property and Additional Property information bs for each state Selected Figure 10 These screens and their uses are sod in Table 1 1 APPT Scre
80. rogram fetus to the original sereen nd displays the in the field The field is sade default is red 10 indicata that a worksheet has been used NOTE rotting is entered Schedule A teid program automaticly days the word NONE in the fid on The generated Tomm This section has just wo ines both refering to the request for deferral for advance payments Line 1 Request change 1o the deferral method fr advance payment from sec 5 02 of Rev Proe 2004 34 Line 2 Request change to deferral method for advance payments fiom ses 1451 50 See IRS Form 3115 instructions for more formation oa king these requests This ection bas twn pans PartI General LIFO Infomation This section is made up o tachment links any of be conditions on lines 16 mach the enit click the corresponding stachment ik to acess the ATT scree whore you can complete bs required statement Select the line code fom the Schedule rop ist on e ATT screen Part Change in Pooling Inventories Enter the descriptions of the contents and the base years af the present and proposed pools any ofthe conditions on Form IIS Again for Change in Accounting Method Deae Mansa Supplement Parier lies 2 4 match the entity s situation click the corresponding tachment link to acces the ATT sereen where you can complete the equi statement Use the D 1 1 sereen w complete the
81. s OL January 02 February ete 5 For line 2 select the day of the week the tax year always ende 6 For line S enter te actual date that the tax year endt the same date entered in the Fiscal year ending field on sereen 1 Once 52 53 year selected entity must use that NOTE seeing period every year change accounting periods ne nity must submit late IRS Farm 3115 Appkcaton for Change In Accounting In subsequent years only the S2 83 wedk tax year check box on seren 1 must be mad e program automatically updates te dates Inactive Enis that ane inactive but ane stili file returns may e file inactive retums Returns in Drake To indicate that a teara i inactive Go to the PRNT cron accesible ftom the General ah 2 Under Items to Print mark tbe Print Inactive return box When the return is calculate the program displays the words Inactive on the main form ofthe etm specifically 1o the right of lies Ta and ID Zeros ate dis Dre Supplement Presse Binary Ascher played where required by the IRS in de for amounts to properly included inthe Sleds NOTE ater mess most be cleared in order to ele an inactive reum Common Error Codes or mane of the following IRS eror reject codes is generated when you e file a 1068 return you mast contact the IRS for ther information The e file help desk umber 866 255 0654
82. s gt Form amp Schedule Options Print inactive return By default the program does not generate reum fca parinership that is inactive Select this option to ovemide the deal for an inc Dese Mom Supplement Parier To have the preparer s signature appear onde printad copy af return he priores PIN here Hemeto Suppress Select the boes corresponding w any worksheets forms or functions to be suppressed in the return PTL Tass and Licenses Attachment or the ATT_PSW reference on Pus Tax Payment Summary Printing of WK Panes Capital Reconciliation Wotksheer Items Described below Schedule K items that can be forced or suppressed from tbe PRNT sereen Select to print The partner s adjusted basis worksheet Page of Schedule K codes Select to Suppress Schedule K K etes ATI or WK Schedule Comparison Worksheet or the Capital Account 1179 foreach partoer Marking of Amended K 1 box on printed Schedule Hem Lon Schedule K 1 Partner s capital account analysis Select box Figure 25 o indicate the calculation method used fre partners capital account indicate the method in the wext box this tem segue Mem M on Schedule K 1 Select is box to answer item M of Schedule K I partes To answer it for ach individual parte to the pares KT
83. scellaneous codes invoice numbers and override fields the following seetions o the Drake Sofa Users Manual Tex Var 2014 Listing a Different Fim Preparer or ERO ona Return in Chapter 2 station amp Setup Miscellaneous Codes in Chapter S Return Preparation Entity Name Control Override Use this field only if your client has bined a Name Control from the IRS rate arua Suplement Pares Scale K Partner Drive Share ems Schedule Partners Distributive Share Items Use the K screens to enter data for Schedule K Partmers Distributive Share Hem For your convenience the most common Schedule K items can be answered on th INC screen Ifyou enter these amounts there do not re enter hem on the K screens E Note te screen K feiss are primary eis Press F1 NOTE aea wat anar at ad fom aana i porum Two serene are for Schedule K Seren 1 af 2 Income Deductions Self Employment and Credits Sereen 2 0f2 For and Other Information ien Transactions Alternative Minimum Tas AMT Mens Pros Paci Dow and Pact Up to navigate from one K sereen to another NOTE shouts not be with te Kt KIG or oier Schedule K 1 for 1065 Partner Information Vs the KI sereen to enter data foe Schedule K L Partner s Shar Deductions e af Income Credis In the Type af Partner section line G select the box to the partn
84. seroens for entering data for Schedule be Information Sereen B For all but lines 3 and4 Sereen 81 For ines 3a and 3b Sereen B4 For lines da and 4b From sereen you can cess screens and BA by clicking the applicable hyper links or by pressing PAGE DOWN fonce for sereen BI twice for screen Wich screens are required depends on the percentage owned See NOTE Farm 1005 for eluting the maximum percentage Many foreign or domestic entity corporation partnership ar trust owns direetly or indie an interest of 50 ar more in pratit os or capil of the partnership use the Line a section of screen to enter entity s name EIN type country of orga and maximum percentage owned in profit ss or capital Man individual or estate owas directly or indirectly interest af 30 or more in profit loss or capital af the partnership use the Lime 3b section of sereen o enter he individual estate s name ID number country of citizenship and maximum per centage owned in profit los or capi Ire partnership owned directly an interest of 20 o more or owned dicey or indies 0 ar more ofthe ttl voting power af all classes of stock entitled vote of any foreign or domestic corparatinn use the Line da section screen 1o eter the corporation s name EIN country of incorporation and percentage owned in vor ing stock the partnership owned directly
85. t must be attached o tbe reum To attach the come ont Deae Manus Supplement 4 Open the SCH sereen 2 In the Statement number field type 03 Assign a title such as Sel Charged Interest no quotation marks naded Enter the following data cach on separate line o Parmendip name o Sweet address US oa Cay US only state code US only ZiP code U S nly BN REGULATION SECTION 1469 10 DECLARATION quotation needed hause note check box at the bottom ofthe SCH sereen Do not musk the For more infomation on interest rules sce the Sl Charged Interest section ofthe Form 1065 instructions NOTE statement not prevent th retum Depreciation Using the DED sereen Tor Direct Entry Line 16 Depreciation Use sereen 4862 to enter depreciable ussets fr Form 1065 For 1125 A Schedule F Form 8825 the RENT sereen rental other than real estate and Section 754 To associate a depreciable asset with un activity make selection om the Far drop list a the top ofthe 4862 sereen As explained further in the Line 16 Depreciation section following the DED Seren has two lines for dieet entry of depreciation Line Ma Depreciation Line 16b Depreciation lam elsewhere on renum item enero in a depraciation field on the DED secon i added to the calcula tions from all 4562
86. te Dre Manual Prnersins Attaching Documents tothe Return To anach a PDF file toa return 4 Fron the retur click View If anything was entend in the PDF Attachments window soe Adding PDF Documents in Drake previously there will be ten items in the View Print window An EF Message alert item 1 in Figure 29 Aa Attach PDF button onthe toolbar 2 in Figure 29 m5 E s 1065 mu Sees igure 29 The MESSAGES Sle 1 she Attach PDF baton 2 2 Click the MESSAGES fle to view EF messages including information on how to tac he required documents to the retum Click the Attach PDF button The EF PDF Attachments window displays he formation entered on the PDF Attachments window in data ety red X means the document has not yet been tached a green check mark indicates an ached document Figure 30 a FR O 1 Tcr mo mm rcm rrr a 77227 EE rums Figure 30 The EF PDF Attachments vios 4 Click the row ofa document to 5 Click Browse 6 Brosse proper falder sleet the PDF fle 1 atacs and click Open or dou the Ble name porting Triat Balance Information rate Supplement Parere Repeat for all documents with aed X When all documents have been attached toa completed etum and show green check mark recalculate the return Ifall EF mes Sages have been resolved the
87. the Other checkbox under the of accounting method change being requested will be marked and a note indicating that multiple aerate requests MULTI AUTO CHNG ROST have been made 51 in Figure 49 cand the designated change numbers ofthe requests appear in the Descripion field ot Pant 1 2 in Figure Figure 49 Accounting change requests noed on 3115 In addition to the code text box the Parts I IV screen consists of the Part I and Part IV sections used to complete the following sections of Form 3115 Part I Information For Requests Part IV Section Aa Adjustment Applicants must complete ba sections of this seren For mane information on each Tine including instruetions for any required attachments press FI in a specifie field Not that thene is field on the Parts I IV sereen for Part line 12 There instead a link to sereen ATT2 Fields for line 12 which should be completed if the applicant is changing ons tbe accounting method for a particular om or items are Tocata in the top alf of ATT sereen Use these fields to entr information on The items being changed The applicant s peesat and proposed methods for the items being changed Theapplicsr present overall method of accounting cash accrual or hybrid Note that the bonom half ofthe sereen is far completing Part ine 230 Only the top half for Part line 12 must
88. the partner s investment in a partnership The basis is determined without considering any amount shown in the partnership books as capital equity or similar account Whena parer disposes ofan interest in a partnership the difference betwova the sale price and the adjusted basis is te Taxable Bain or los The Basis Wis sereen is accessible by clicking the Rasis Whs tab at the top of the KI soon for a Access the KI sereen from the Data Entry Men NOTE DgBenswensnen is pned ony wnen te option selected on Increases basis can include coh contributo taxable income af partnership ing capital gains income of partnership and partner s adjusted basis of propeny transfered to a partnership Decreases to basis can include distributions of cash or property to partners separately loses and deductions nondeductible business expenses and eredit adjust When the program is updated to the next tax year the end of year basis and liability amounts ane automatically updated to the beginning the year Any loss or deduction carryover is updated to the beginning of the year and character ordinary loss ec tion 179 expers charta conbibuins e maintained Fak sereen i marke as tral none c screens tor hat NOTE pinara iaaa ee eye cations Use the SA screen see Figure 14 on page 27 far partner special allocations to allo cate liability Part Income
89. ve ions NA wi boca Fam SIL No fra reine parete moneam mmt uS sisi oo thing has yet been selected for any other ne To niach a statement Click Attachment kt he po Section Figue 32 am page 64 A single cement lacet exp oe rem Beales Form IIS Again for Change in Accounting Met Dese Moms Supplement Parier Figure Many bon is marked cic the D3 Attachment link to Schedule Use screen scesile fom the Change in Accounting Method section of the Other Forms tab 10 complete Schedule E Change in Depression or Amonization ths method under the automate change request proc NOTE dures see the List of Automate Accounting Method Changes In the IRS Form 3115 instructo Screen SHE Unlike the other 3148 screens sereen contains two nali fom code text boxes Multi form odes Muitfarm code for MIS This box is applicable if the retum contains more one Form 3113 Emer the code for the instance ofthe 31S sereen with which this sereen should be associated Mutt form code for Seh E This box is applicable ifthe retum contains more an one Schedule E A separate sereen shouldbe used each pope Assign cach property a separate eode in its code far Seh E This code enables you to associate any atachments with the corect Schedule E property Sce Alchment c
90. w mode EF messages far Form 3115 provide information about tegi atachments icd ing PDF attachments tat are missing from the etum Some messages list all siate ments requie Tor a particular section but do bt inate which temen specifically re missing To best understand which atchments are stl required orare the ATT sereen andthe PDF worksheet to the list on EF message pze ALEF messages must be before the return is agi or NOTE EF messages tor Form 3115 atachments when al ned sienne hve hon acad tr Form IIS Again for Change in Accounting Met Dese Moms Supplement Dre arua Sgplonen Appendix A Trial Balance Import The balance input allows data to be ported anto a partnership ta etum fom a tial balance worksheet Drake s specially designed vial balance template and irnporing funcion has the f l lowing bene Eliminates the need to duplicate entes Eliminates data etry errors by automatically importing data to the corect fields Allows preparers to merge asie accounting functions with tx preparation Sce nex page for a chart describing the use of be rl balance import Trial Balance Import General Process Prepare to use Trial Nom lt Balance Import x ps sea 1 M e D gt l 4 e 3 BE Populate Data Entry T aa a d
91. ware assigns it Sle location Convention ang name Trial balance templites are saved in the Tolder of your Drake13 sofi vare The file name consists of the client name as entered in Drake plus TB fr ial balance plus suffix assigned to all Excel files as shown in Figure 34 5 o Figure Example of template mme To change the name of filein Excel select File gt Save As and assign he new name Templato The tial ance template consists of three itle rows and six columns The Entity Structure Name and Year End ile rowa can be edited double click a row o change the tile Columns described in Table 4 Table 4 Trial Balance Template Columns Column Description Oba aan a ea Dre Manus Supplement Partnerships Importing Trial Balance Information Displayed at tbe bottom ofthe vial balance worksheet are the amount for Schedule M 1 ie 1 the credit and debit and acel showing whether or not he lance sheet is of balance and if applicable the ouf bane amount Figure 35 see also Figure 38 on page 30 c niri 3j Figur 35 Schedles tot 2 and indication af balanse 3 Following ae instructions and guidelines for using the uial balance template t0 assemble financial data far importing into data entry Entering Financial Data
92. wer question 3 sce Figure 47 on Tode 59 the answer is Ves Ondinarily the IRS will not consent to a request for a change in method of accounting for applicant s inal tax year If the applicant eases to engage in the trade or basics to which the desired change in accounting method etes or terminates is existence inthe year of change the applicant is ordinarily not eligi make the change under automate change request procedures unless the plicable esto of the Appendix Rev Proe 2011 14 other applicable pub Dre Suplement Presse Form 11S Application for Charge in Acn Pat Multiple Accounting Method Changes lished guidance states that section 40205 of Rev Proc 2011 14 does not apply to be requested change in method of accounting I the change is equested under the advance consent procedures the IRS National Office will consider the reasons forthe change in the applicant s final year see Part I ine 21 in determining Whether to approve the requested etange 2 Soe IRS Form 3115 instruetions for detail me igure 47 Automatic Change information NOTE eig t use te automati change request pro Mihis seston of the Parts screens filled out Form 3115 cannot be ile with the retum Ir must instead be operi before submitting the raum foe heck oe money order payable to the IRS must be included with the paper ilad fom Soo Appo

Drake Software User`s Manual Supplement: Partnerships (1065)

Contents

Download Pdf Manuals

Related Search

Related Contents