Pass Through Entity Tax - Partner Type Disregarded Entity

Forum|Forum|3 years ago
January 25, 2023
1 reply
16 views

To populate Federal K-1 H2 with disregarded entity name and TIN, "Disregarded Entity" has to be entered in Screen 7 as Type of Entity and then disregarded entity name and EIN entered in Screen 32.1. along with beneficial owner partner type. However, if you do this, AZ pass through entity tax will not calculate for that partner even though the beneficial owner is an individual. To get the AZ pass through entity tax to calculate, Screen 7 has to have "Individual" as the Type of Entity, but then the Fed K-1 will not report the DE information. Any solution to this?? Seems the software logic needs to look maybe to screen 7 first, but it that is disregarded entity, then maybe the logic needs to go to 32.1 for final determination....

Lacerte Tax

This topic has been closed for replies.

Best answer by PhoebeRoberts

AZ K-1 shows Disregarded Entity. I can't find a way to fix that presentation. My AZ 165 Sch D shows R for Resident, not O for Other Entity, at least!

Screen 7:

Screen 32.1 (the rest is empty):

My best guess is that there's some entry you have and I don't, which entry is required to make the return work, that is the problem. That is super hard to troubleshoot, and to fix in a satisfying way.

PhoebeRoberts

Intuit Community Champion

I can't recreate that with a dummy return. Are you on the most recent update?

B

Brian HansenAuthor

Level 3

Yes, on most recent and spent an hour on phone with Lacerte to no avail. Reapplying updates to see if that works.

Does your AZ K-1 show "Individual" or "Disregarded Entity" as partner type? Mine shows Disregarded Entity even though federal shows just as yours....

PhoebeRoberts

Answer

Intuit Community Champion

AZ K-1 shows Disregarded Entity. I can't find a way to fix that presentation. My AZ 165 Sch D shows R for Resident, not O for Other Entity, at least!

Screen 7:

Screen 32.1 (the rest is empty):

My best guess is that there's some entry you have and I don't, which entry is required to make the return work, that is the problem. That is super hard to troubleshoot, and to fix in a satisfying way.

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