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Partnership basis tracking/capital accounts/sub activities

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Partnership basis tracking/capital accounts/sub activities

kfrostycpa

Thanks to the IRS mandate for partner level tax basis capital account tracking, Lacerte seems to have added a gateway to deductible losses keyed to the reported capital account.  My clients have a number of real estate based partnerships where we track the activity on a sub-entity basis.  Currently, I see no way to force lacerte to allow these separate sub-activity losses to be released into the return without splitting up the capital account reporting from the parent partnership.  Seems like an override box to bypass the Lacerte basis calculation and tracking and force the release of losses would be a quick fix.  Longer term, I would LOVE to see the ability to add sub-activities to a parent level partnership, thereby leaving the capital account (basis tracking) intact at the umbrella level entity.

It would seem like a mechanism that looks a bit like tagging separate assets to be sold in a bulk sale to the asset holding the sale transaction details, only using a "parent partnership" and being able to tag sub-activities to it to enable the master capital account to then drive the current deductability of losses.

This is a complicated issue, and I hope I described it well.

Status: New
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