Apportion a Schedule C business across multiple states. All states have gross receipts and wages, but all assets and rents are in only one state.
All details in apportionment section of Schedule C have been entered. But it does not seem to be working.
- What specific steps are necessary to prepare?
- Or, can this even be done in this way?
Yes this is a first attempt at taming such a return. Any and all assistance is greatly appreciated!
(Related? Have found Help reference to "Set Apportionment Options" in Settings > Options > Tax Return but I'm not finding Section "Multi-State Options" where Apportionment settings are to exist)
For each entry in Schedule C, use Ctrl + E to allocate that income/expense/depreciation item etc. What states are you working with. What is the resident state. Some don't really care where the income came from, they tax it anyway. The net affect is how the credit for taxes paid other states shows up.
First, read the instructions for each state to see what constitutes nexus for filing requirement. This may lead you to state law.
After you determine where you need to file, set up each state in Lacerte and make sure to enter the nonresident info for each state. Make sure Ohio is listed as resident state.
Okay, I do need to check for nexus but I've done the rest. It still looks like the schedule C details have to be allocated to each state manually.
Yes, but you can cheat a bit. Suppose you have one big deduction for Office Supplies > You can do all of your allocation there. You are really only concerned that the net of Schedule C be accurate for each state, not necessarily that each income and expense item matches. You might be able to get the proper net just by tweaking the Gross Income.