Below are answers to frequently asked questions about passthrough income reported on Schedule E, page 2.
How do I check 'yes' on line 27?
The program will check this box automatically when you report the specified prior year losses or unreimbursed partnership expenses (UPE) for any activity.
- Prior year basis, at-risk, and passive loss carryovers should be entered on Screen 20. Note that this box will only get checked if all or part of the losses are allowed to be absorbed this year.
- Unreimbursed partnership expenses can be entered directly on Screen 20 or calculated by Lacerte. Learn more about UPE
How do I check 28f for 'amount not at risk'?
Lacerte will only check the box in column f on line 28 when both of these are true for an activity:
- Form 6198, At-Risk Limitations is generated and shows a current year loss that exceeds the amount at risk, and
- At least part of the loss is allowed on Schedule E after the passive limitation is applied.
See Understanding at-risk limitations for K-1 losses in Lacerte for instructions on generating Form 6198.
If you're not sure why a loss isn't flowing to the Schedule E, check the K-1 Reconciliation Worksheet.
How do I check the box for 'basis computation required'?
Lacerte will automatically check this box for S-Corporation activities where a loss is reported, your client received a distribution or loan repayment, or disposed of stock. Learn more