Question
Deficit restoration obligation LLC General partner K-1
Client is general partner in an LLC taxed as a partnership. His K-1 end of year basis is negative and a box 19 distribution of $22k. The K-1 Box 20 code X is for exactly the same amount of the negative basis and titled Deficit Restoration Obligation. After some reading I know this can allow the $22k to not be taxed but how do I reflect this situation in Lacerte? Thanks in advance!
