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Unadjusted Basis

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Level 2

Is Lacerte calculating unadjusted basis correctly?  I am preparing a partnership tax return that rents nonresidential property.  It seems that only the leasehold improvements per Lacerte qualify as unadjusted basis.  The building that is not fully depreciated is not included.  I think this is incorrect.

What is not unadjusted basis property?

Does a partnership need to include the safe harbor real estate form? 

 

 

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Level 2

I have included the safe harbor statement as a pdf attachment.  Lacerte assumes it is QBI, but I don't want to take a chance.  It also means the Taxpayers recognize they have an obligation to keep proper records when I make them sign the form.

Check your date placed in service and method on your depreciation schedule.  Lacerte has it correct on the returns I have prepared.  Take a look at the worksheets on 1065, page 4 Line 20c.  The detail Lacerte is using is there.

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Level 2

Mark,

 

Thanks for responding to my questions. 

I have looked at the worksheets.  I am just not sure why some of the assets are included in the unadjusted basis while others are not. 

 

All of my improvements that are currently being depreciated or were 179ed in 2018 are included but the actual buildings acquired in 2004 that are still being depreciated are not.  Do you know why?

 

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