Level 4

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K-1 Basis limitation

Forum|Forum|6 years ago
May 18, 2020
1 reply
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Hello,

I find the capital account on K-1 is different from the one calculated by Lacerte. The current year net income(loss) is always different...Lacerte is using all the numbers i entered to calculate. I am sure i entered all the numbers right. But somehow the current year net income is wired on K-1, which does not equal to the calculation. Can i use other current year increases(decreases) to basis to adjust Lacerte and keep it the same as K-1?

Thank you!

Lacerte Tax

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Best answer by PhoebeRoberts

Rounding, book-tax differences, inside-outside basis differences, weird capital adjustments from other pass-through entities.

Level 15

Capital account does not equal basis, except in rare circumstances.

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

misskeikoAuthor

Level 4

I know there are some differences, especially the liabilities. But do you know why the income is different? Thank you!

Intuit Community Champion

Answer

Intuit Community Champion

Rounding, book-tax differences, inside-outside basis differences, weird capital adjustments from other pass-through entities.