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Level 5
April 8, 2024
Question

Allocating S-Corp Income Between Multiple States

  • April 8, 2024
  • 1 reply
  • 4 views

Taxpayer has nexus in multiple states for an 1120-S and needs to allocate accordingly.

Where is this done in ProConnect? Does it generate the appropriate K-1 for each state?

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1 reply

sjrcpa
Level 15
April 8, 2024

Most business income gets apportioned, not allocated.

Look for apportionment input areas. You will definitely need sales in each state. Some states also use payroll and property in their apportionment factors.

The more I know the more I don’t know.