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1065 - How to allocate Self Rental income to one partner

Muppetslayer
Level 1

One member of this partnership has an office in the building.  In ProSeries, how can I enter a special allocation for *only* the self rental income to this one partner?  The other members would have all passive commercial real estate rental income and $0 for self-rental.

please help!

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5 Replies 5
dkh
Level 11

Go to K1 Worksheet bottom right of the Each Partner Information  has Special Allocations by Ratio or Amounts    that will tie into Form 1065 page 4, next to each line item is column for SA     

 

Muppetslayer
Level 1

This solution allocates only the total rental income as shown on the 8825 and Schedule K.  This issue relates to special allocations by activity.  Specifically, to enter special allocations for commercial real estate and self rental income by partner.

This client has a mix of both since it's a large building with multiple units and two of the four partners operate their businesses on premises.  It would be incorrect to allocate self rental passive losses to a partner that does not operate a business in one of the units.

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dkh
Level 11

The bottom of each member/partner's K1 has a Supplemental Information Smart Worksheet  - can you use that space to report the allocation required?

Muppetslayer
Level 1

Yes, but only by entering override entries for each activity type for each partner.  The system does have a useful check feature to ensure we allocate the correct amount.  However, in our office, hard-coding overrides on government forms is to be a last resort only.

Looking for an entry, grid, or other method to enter the special allocations by rental activity without needing PDF attachments or hardcode overrides.

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dkh
Level 11

No override necessary if you use the Supplemental Information Smart Worksheet     this area allows information to be typed in and a dollar amount       does not affect any calculations