Why doesn't current Section 59(e)(2) expenditure carryforward to Schedule E pg 2?

Forum|Forum|4 years ago
February 28, 2022
1 reply
7 views

Personal return

Form 1040

2021

IDC entry from 1065 K-1 Line 13 doesn't carryforward to Schedule E. Entered as a positive number. Didn't elect to amortize. Thinking it was a basis limitation, entered a larger amount in additional amounts invested this year in the Basis tab.

Thank you in advance for your support.

Mark

ProConnect Tax

This topic has been closed for replies.

Best answer by PhoebeRoberts

You've entered it as a passive K-1. Note that if the operated mineral interests are owned through a liability-limiting entity (your guy is not a general partner in the current year), passive is the correct answer. Many drilling partnerships are structured to "flip" from a general partnership to a limited partnership once the wells pay out.

PhoebeRoberts

Answer

Intuit Community Champion

You've entered it as a passive K-1. Note that if the operated mineral interests are owned through a liability-limiting entity (your guy is not a general partner in the current year), passive is the correct answer. Many drilling partnerships are structured to "flip" from a general partnership to a limited partnership once the wells pay out.

M

mkemptonAuthor

Level 2

Phoebe, thank you. After posting my question I thought that might be the reason and updated the software. All the best, Mark

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