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PTP Sec 751 Gain as Ordinary Income form 4797 How do I enter this in the Ind Module

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I have a sale of a PTP that has a Gain subject to Recapture as Ordinary Income that has to flow to form 4797 Part II Line 10

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Level 15

Try the input for Line 11 3rd item is Ordinary gain (loss) to be reported on 4797, line 10.

 

Income tax returns are the most imaginative fiction being written today. — Herman Wouk
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Thanks George for responding.  I need the amount to go to the Form 4797 Line 10 as an Ordinary Gain.

It says to do this thru the disposition screen which I cannot figure out

Jim

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Level 15

What is "it" in "It says to do this thru the disposition screen"

Did you even try the entry I gave to you?

 

Income tax returns are the most imaginative fiction being written today. — Herman Wouk
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George's suggestion gets it on the right line, but with the description "From K-1," rather than with 1040-level disposition detail. It also affects the basis calculation whether you want it to or not. Not materially wrong, but not the presentation I prefer. That said, PTP stuff in general has kind of awful presentation.

 

In Screen 17.1, my description is {PTP Name} Ordinary Gain

Dates acquired and sold per disposition schedule. In the field directly below those, override with 1 for short-term.

Sales price is the ordinary income piece. If you have a different ordinary income piece for AMT and for regular tax, enter the sales price as basis, then under Form 4797 enter the ordinary income piece again under depreciation allowed, and the AMT ordinary amount as AMT depreciation 4 rows farther down. If no AMT adjustment, you can omit the basis number and just enter a -1 under depreciation allowed.

Look at the 4797. Look at the AMT 4797. Adjust input as seems appropriate.

 

Don't forget to pick the ordinary gain up as PTP QBI income!

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How do I make sure and pick the ordinary gain up as PTP QBI income?

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I had a similar situation with an S-corp disposition of Section 179 asset.  I entered on the Form 20.2 pass-through screen line 17 Section 199A other income column.  Not sure if that is proper, but it worked.

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