Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Route 743(b) negative adjustment to K-1 Code 13V instead of 13W?

Level 1

I have several partnership returns with 754 elections and 743(b) depreciation. Has anyone found a way yet to have these show up on Schedule K-1 with Code 13V instead of Code 13W? With the revised K-1 codes for 2019 the 743(b) negative adjustments now have their own code, but I can't get Lacerte to send them from the Depreciation screen to the correct code.  

Labels (1)
0 Cheers
5 Replies 5
Level 1

I'm having the same problem and thought it would be fixed for 2020, but it still goes to Code W.

0 Cheers
Level 1

Someone at Lacerte got back to me with an answer last year. On the Depreciation screen 14, in the Asset Information section, under the heading Regular Depreciation there is a line for Special allocation. If you select one of the options on that line that includes 743(b) then the depreciation on that asset routes to Line 13V on the K-1s. 

0 Cheers
Level 1

Thank you!  I actually discovered earlier today.  What I now can't find is how to enter AH code and the required language per partner instructions for the partner with the 743(b) adjustment.  This is now required to comply with tax basis capital account reporting.  Any ideas there?  

0 Cheers
Level 1

I haven't tried to have Lacerte generate the footnotes yet, so I'm no help there. I was just planning to use the language from the IRS FAQ Example 5-1 and 5-2 https://www.irs.gov/forms-pubs/clarifications-for-disregarded-entity-reporting-and-section-743b-repo... and type it into Screen 30 Supplemental Info Per Partner. It sure would be awesome if Lacerte had a way to automate that. Let me know if you hear find an automated way to generate the footnote.

0 Cheers
Level 1

That is exactly what I've done.  I requested that this feature get passed on to programming since it is now an annual requirement.  Thanks for your verification! 

0 Cheers