If there's a distribution in excess of basis, ProConnect doesn't automatically compute the gain. The gain on distribution in excess of basis must be entered directly.
Per Code C - Distribution subject to section 737: The partnership will attach a statement that provides the information the partner needs to compute the recognized gain under section 737; the partnership is required to provide the following information:
- Fair market value of the distributed property
- Amount of money received in the distribution
- Net precontribution gain of the partner
To enter gain on distributions:
- Complete the Line 19c worksheet provided in the partner's instructions for Schedule K-1.
- The gain from the worksheet must be entered by going from the Input Return tab to Income ⮕ Dispositions.