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Where to enter Qualified Small Business Stock (box 11H) from a partnership return?

nethertonrian
Level 1
 
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4 Replies 4
George4Tacks
Level 15
Box 11 H or is it maybe I?

ex-AllStar
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George4Tacks
Level 15

When all else fails, read the partner instructions that should be with the K-1  https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf


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PhoebeRoberts
Level 9
Level 9

My notes for Lacerte, which works similarly, say:

Can't be handled in K-1 input screen. Have to set up as Sch D entry and back out of K-1. We get 1202 treatment only if we owned the partnership at the time it invested in the QSBS, and the partnership held it 5 years. We bought this Date1. No 1202 treatment prior to Date2! For Date3 all the 1202 stock gets better treatment. Post 9/27/2010 amounts get 100% exclusion. Reduce K-1 LTCG, increase TE income or make an entry in Other Increases to Basis.

SP5
Level 1

I came to the same conclusion. The problem seems to be that, in Lacerte/Intuit ProConnect, one cannot set up a Sch D entry that has a negative number in column (h) (or zero as the "proceeds/sale price"). E.g., I have a K-1 that shows 100 of long-term capital gains on line 9a, and the supplemental info says 15 of those 100 are eligible for Sec 1202 exclusion. I believe the correct presentation is that line 12 of Schedule D shows 100 (the full amount of capital gains reported on line 9a of the K-1), and there is an entry on Form 8949/line 10 of Schedule D that shows zeroes in columns (d) and (e), "Q" in column (f), and -15 in columns (g) and (h).  I cannot find a way to accomplish that result.  The best I can do is back out the 15 and report only the net 85 in the K-1 screen (so that it populates 85 in line 12 of Schedule D), and then create an entry under "Dispositions" that shows proceeds of 15 in column (d), "Q" in column (f), -15 in column (g), and zero in column (h).  It is a "nothing" entry in that it nets to zero, but perhaps it gives a clue to the IRS as to why line 12 shows a net 85, rather than the 100 that appeared in the K-1.  Has anyone found a better way to address this issue within the constraints of the program?

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