Form 8986 Partners share of Adjustments

Forum|Forum|6 months ago
December 31, 2025
1 reply
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My client received a Form 8986 Partner's Share of Adjustments to Partnership-Related Items for an old conservation easement investment. It is for the tax year ended 12/31/18. The Adjustment year of the partnership is tax year ended 12/312/24. The extended due date of the partnership's adjustment year return is 9/15/25. The the date the partnership furnished the form 8986 is 12/20/24. I assume this needs to be reported on the 2024 return. Does anyone know how this gets reported in Lacerte? The adjustments are to decrease noncash contributions and increase portfolio deductions.

Lacerte Tax

PhoebeRoberts

Intuit Community Champion

I had one of these for 2019, with the AAR changing reporting for for 2018. The answer is, "you do a bunch of manual calculations, fill out Form 8978 by hand, and paper file the return it gets attached to."

In your case, I believe you do those manual calculations year by year.

I relied very heavily on the 2020 version of this article: https://www.thetaxadviser.com/issues/2024/jun/fiiling-an-administrative-adjustment-request-under-the-bba/ and the Form 8978 instructions.

You might warn your client that the professional fees for handing the 8986 will be ridiculous, because it takes a ridiculous amount of extra time.