Submitted by Philler on 09-20-2021 04:23 PM
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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