Partner's share of non recourse liability

[mosesalade]

Can someone point me to where to enter non recourse liability of a partner on Schedule K-1 of Form 1065?

[dkh]

There is a Other Items to be reported on Schedules K-1 Smart Worksheet   at end of page 4 - right before page 5 Schedule L 

[Just-Lisa-Now-]

Do you mean how to get it on the k-1?

or where/how to report on the 1040 when the client receives the K-1 showing this?

[mosesalade]

My question is in regards to Form 1040 K-1 and not Form 1065.  The partner's share of the liability increases basis that enables the taxpayer to deduct loss from the partnership.  

Thanks

[mosesalade]

Yes, please.  I want to use the share of his liability to increase basis so that I can deduct the loss from the partnership.

Thanks

[dkh · Accepted solution]

Enter only the allowable amount of loss on the 1040 K1, check the box in column e line 28 of Schedule Epg2 and attach Basis computation worksheet