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S-Corp pass-through partnership basis limitation

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S-Corp pass-through partnership basis limitation

Philler

In the S-Corp module, the software does not track basis for a partnership owned by the S-Corp.  Therefore, it does not apply the partnership's basis limitation to losses, like it would do automatically in the individual module.  The preparer is forced to keep track of the partnership's basis and loss carryover amounts outside of Lacerte.  This appears to be the case in the fiduciary module, as well.

By looking at the Lacerte input screen, it appears that one could simply take the loss from the Partnership's k-1 and enter it to arrive at the correct taxable amount.  This is misleading.  

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2 Comments
sjrcpa
Level 15

You are correct. Pass thrus to pass thrus have limited functionality in Lacerte. (Other software, too I suspect.) I keep a manual basis and loss limitation schedule. I enter in Lacerte only the allowable loss,

dd11
New Member

Yes, for fiduciary Lacerte help says

The fiduciary program does not automatically compute basis limitations. The required basis computation must be computed manually, and then attached to the return (via .PDF attachments if the return is electronically filed).

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