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.
Solved! Go to Solution.