Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- Section 743(b) Special Allocation
Section 743(b) Special Allocation
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
tahlstrom
Level 2
01-28-2022
03:11 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
In the Partnership module for 2021, I'm seeing an M-1 adjustment on for a depreciation asset marked as Section 743(b) (Schedule K only) under the heading Regular Depreciation Special Allocation. This code should not cause a M-1 line entry.
Labels
1 Comment 1
joshuabarksatlc
Level 10
01-28-2022
04:52 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This discussion is based on my practice that:
1. NO Section 754 adjustment is recorded on the book.
2. The book balance sheet is used for Sch L on F1065.
The Sec 754 adjustments has to show up (on line 7a) of M1. This is because Line 9 of M1 is NET of the 754 adjustment. The Line 7a amount is needed to account for the book (NO 754 adjustment) and tax (YES for 754 adjustment) .
Without including the 754 adjustment on Line 7a, M1, your capital account balance (Line 9 of M2) would be off from your Sch L capital account balance.
I come here for kudos and IRonMaN's jokes.
