Unlike individual returns, where each income item or deduction can be directly allocated to a certain state, partnerships, S-corporations, and corporations are required to use apportionment to calculate their returns. While apportionment factors vary among states, in general, the program calculates the following apportionment factors from their respective input screens:
- Property Factor - Depreciable assets, balance sheet totals, and deductions
- Payroll Factor - Deductions
- Sales Factor - Income
If you use automatic apportionment, you must assign state identifiers to these items in their respective input screens. You may also override any state's automatic apportionment on the State & Local screens for apportionment.
The partnership, corporate, and S-corporate modules only allow you to assign state identifiers for items that apply to apportionment factors.