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Hi:
I have a client who sold interest in LLC taxed as a partnership in 2020 and received final k-1. This was a schedule K-1 (1065) . It was not a PTP. He was also an employee and its non-passive activity. There were no passive carryovers nor depreciation involved. Also, no hot assets sold - receivables or inventory.
- Does Lacerte have a special worksheet or area that would connect the 1065 k-1 (screen 20 - passthrough k-1) to dispositions (screen 17) for this type of situation ? I don't see anything. I ended up taking the total sales proceeds and subtracting his final year adjusted basis in screen 17 - disposition
Thanks, D
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Yes you can link the sale to the K-1 entity.
In the Dispositions Screen 17 go down to Corresponding Activity Information. It works for nonpassive activities, too.
Ex-AllStar
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Thanks so much. You just also helped me realize that client may not have to pay the NIIT tax on sale of partnership, also. Rock on ! Thanks !
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You're welcome.
Ex-AllStar