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Discussion Forum Index --> Basic Tax Questions --> Lacerte input question-distribution in excess of basis
Discussion Forum Index --> Tax Questions --> Lacerte input question-distribution in excess of basis
LSC CPA (talk|edits) said:
| 15 May 2009
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| I'm doing a 1040 for a client who has a distribution in excess of basis from a partnership (decrease in partnership liabilities treated as a distribution, since he had -0- basis). I need to report this as a LTCG on the 1040 and am not sure exactly where to input this amount in Lacerte - looking for some guidance. Thanks!
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Futenma (talk|edits) said:
| 15 May 2009
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| Input the gain in Screen 17 - Dispositions. If you are using Lacerte to track basis, you will also need to enter the gain in Screen 20.1 "Other current year increase to basis."
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Illini (talk|edits) said:
| 15 May 2009
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| yes -- easy to forget the increase to basis adjustment made for claiming the excess distribution
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Harry Boscoe (talk|edits) said:
| 15 May 2009
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| What increase to basis? In the simplest case, it was zero before the distribution, and it'll be zero after the distribution. Just stirring the water.
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Futenma (talk|edits) said:
| 15 May 2009
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| No increase to basis - but if you use Lacerte to track basis you may also need to make an adjustment in screen 20.1. - didn't mean to imply that basis was increased by the gain recognized.
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