Aggregating partnership basis when one partnership owns another partnership on 1040 K-1's
I am converting from Ultratax and this applies to reporting partnership K-1's for 1040's. When a partnership (EIN 11-1111111) owns another partnership (EIN 22-2222222), in Ultratax you enter a separate K-1 for 11-111111, and a separate K-1 for 22-2222222 using the EIN of 11-1111111. In the K-1 for the 1st 11-111111 you can select to aggregate the basis combining the basis for all EIN's with 11-1111111. Therefore all the K-1 entries are combined for one basis under the 1st EIN of 11-1111111. Otherwise I will have to make a manual basis adjustment. This function allows a user to easily match the ending capital and liability amounts shown on the main K-1 a taxpayer receives to the partnership basis reported on the tax return. Any questions on how this works on Ultratax please feel free to contact me at
