Level 3

Client has excess business interest from a k-1, one of those PTPs in oil&gas that rolled up this year into the parent corporation when feds changed their pricing mechanism (so assume will be many more out there).  Input in K-1 (screen 20) and Lacerte carries to the 8990 and merely hangs it there to be carried over even with K-1 marked as final.  Since the rollup is considered taxable, the gain is shown on sch D and that input was linked back to the K-1 and also checked for at risk.  But Lacerte does nothing with this.  After hours with tech support being futile, I figured the gain manually and dropped it into the K-1 input (20AE) as excess income.  Now Lacerte allows the interest to be recognized on the 8990 but still does nothing with it (though now you get a diagnostic).   So manually added the expense item to the 2106 input and directed it back to the K-1.  Now it seems to work, and I also get a reconciled basis amount of zero.  But what a clumsy way to do this.   So did Lacerte drop the ball here or am I misunderstanding my way around how the new input should work?  Thanks.

Labels (1)
0 Cheers