ProConnect HelpIntuit HelpIntuit

How to allocate unrecaptured 1250 gain for a Schedule K-1 (Form 1065) in Lacerte

SOLVEDby IntuitLacerte Tax5Updated July 12, 2022

This article will help you specially allocate unrecaptured Section 1250 gain from a disposition of business assets (Schedule K-1, box 9c), other than the profit sharing percentage entered in Screen 8, Partner Percentages.

Follow the steps below:

  1. Go to the Detail tab > then Screen 29, Special Allocations.
  2. Select Income (Sch. K-1, Boxes 1–11) from the left section menu.
  3. Select Unrecaptured Section 1250 Gain.
  4. Select Disposition of Business Assets
    • If this is from a K-1, use From Passthrough Entities in the same section.
  5. Select the Allocation Method from the dropdown (Lacerte will default to amount).
  6. Allocate the amount as per the partnership agreement.
    • If applicable, allocate the Section 1231 Gain(Loss); the unrecaptured section 1250 gain from a sale of business assets is a part of this gain.
  7. To confirm the allocation, view Box 9c on the Schedule K-1 in the Forms tab.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte TaxLacerte Tax Planner

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.