K-1 From Partnership

Forum|Forum|5 years ago
July 24, 2020
1 reply
19 views

On Schedule K-1 for year 2019, there is a new section, Box N - Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss). The beginning balance is $100,000. The ending balance is $400,000. Where do we enter this information in Lacerte?
Is this just for informational purposes?
Does this information need to be reported anywhere on the 1040?

Is this taxable?

Lacerte Tax

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abctax55

Level 15

Google is your friend:

https://rsmus.com/what-we-do/services/tax/federal-tax/partnership-tax-planning/key-takeaways-for-new-tax-basis-and-section-704c-2019-reporting.html

HumanKind... Be Both

D

dsfcpaAuthor

Level 2

Thank you for this info. A couple follow up questions when preparing the 1040:

1. On Schedule K-1 for year 2019, there is a new section, Box N - Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss). The beginning balance is $100,000. The ending balance is $400,000. Do we need to enter this information in Lacerte when preparing Form 1040?
Is this just for informational purposes?
Does this information need to be reported anywhere on the 1040?

2. Is this taxable on Form 1040?

jake1

Level 3

Hi dsfcpa,

Were you able to find any information as to the reporting the information in Box N on the individual return? I have found guidance on 704(c) at the partnership level, but little to none regarding the reporting of this information at the individual level. Anything would be greatly appreciated! (I may not be equipped or comfortable reporting this) Thank you in advance!

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