K-1's

Forum|Forum|6 years ago
April 11, 2020
2 replies
22 views

I have a Partnership that received a K-1 from another pass thru entity. (Partnership). This K-1 shows

a $45,000 loss. The Capital account shows a loss of $100,000. I noticed on the software there isn't anywhere to enter the basis and the program is taking the loss against ordinary income. Because of the basis, being zero, I thought the partnership cannot take the loss. So what do i do? It also show a distribution on the K-1, so wouldn't the excess of his basis be taxable? How do I do this on Lacerte?

Thank you so much. I am at a loss......

Lacerte Tax

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abctax55

Level 15

You have to track, and override.... I use excel.

And don't forget at-risk & non-recourse/recourse loan consideration.

HumanKind... Be Both

sjrcpa

Level 15

We're on a jinx roll tonight Anna.

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

abctax55

Level 15

Because we are to burned out to work on aaaaaaaaallllllllll those returns staring at me from the various piles I have stacked about?

HumanKind... Be Both

sjrcpa

Level 15

Compute the basis yourself and calculate the allowable loss. Enter the allowable loss in the partnership return. Maintain a schedule for your file showing loss in excess of basis for next year. Remember that capital account balance is hardly ever basis.

You'll have an M-1 adjustment for book loss/tax loss difference.

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

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