PhoebeRoberts
Level 11
Level 11

In Win10, Windows Key + Shift + S opens a screen capture tool. It grays out the screen, you select the area to capture with your mouse, and when you release the mouse it gives you a little "click here to edit and save" option. Click that, click the Save icon, save somewhere you can remember, then use the camera icon at the top of the message input box to upload the image file.

If you have a loss in the current year, how do you have income to restore debt basis? If low basis / no basis debt was repaid, you do have a gain.

Step 1: Enter the repayment into the K-1 input screen:

Screenshot 2021-03-03 100306.png

Step 2: Lacerte calculates the gain on repayment, reports it on Line 12 of Schedule D, and adjusts the basis schedule automatically. READ YOUR DIAGNOSTICS to see that Lacerte assumes that a) there's a written note (so the client gets capital gains treatment) and b) it's long-term. There are references to the relevant Rev Ruls and directions for overriding if Lacerte is assuming wrong.

Screenshot 2021-03-03 100444.png

 

The "income used to restore debt basis" line doesn't get used, because there's no current-year income from the K-1 itself. (The 1120S basis schedule doesn't have the same presentation as the 1040 basis schedule; that's okay.)