Allocation Versus Apportionment in the Business Return Modules
Lacerte will have allocation fields available for states that support allocation. If you are unable to allocate to a specific state then the state should have an apportionment screen
Apportionment involves three factors:
- Sales - The sales factor is generally made up of gross receipts.
- Property - The property factor is generally calculated from depreciable assets.
- Payroll - The payroll factor is generally made up of salaries and wages.
Apportionment adjustments can be made in the State & Local screens:
- Individual - Screens will vary by state (Screens 50 - 51). Very few individual states calculate an apportionment formula.
- Partnership - Screen 44
- Corporate - Screen 52
- S-Corporate - Screen 50
- Exempt - Screen 73
Note: The apportionment input options will vary by state. These input differences will directly correlate with each state's apportionment formula(s) described within the state's form instructions.