Entering change in ownership dates for a partnership return in Lacerte

To enter change in ownership dates to calculate a weighted average:

1. Open Screen 9.1, Change in Ownership.
2. If the changes to dates of ownership are the same for all partners, select Alloc Override Dates in the left menu.
3. Enter the Beginning date and Ending date for each change in the periods available. These dates must cover the entire tax year. The periods are distinct segments of time during which the percentages for everyone were constant.  Periods can be as long as several months, or as short as a day. 
   • If you had one day that the partners' percentages changed (maybe when someone left), you would have two periods—the time before one partner left, and the time after the partner left.
   • For example, if you have three partners and one change during the year, you'd enter two periods: Period 1: 1/1/2020 - 5/15/2020 and Period 2: 05/16/2020 - 12/31/2020.
4. Select the Partner who changed or ended profit sharing during the tax year. 
   • For example, if partner 2 went from 50% ownership to 25% ownership, then partner 3 becomes a new partner at 25%.
5. If dates weren't entered in Alloc Override Dates, enter the period Beginning date and Ending date. Otherwise, Lacerte will use the dates entered in step 2.
6. In Percentage (xx.xxxxxx) (-1=none) enter the partner's profit sharing percentage for each allocation period in xx.xxxxxx format. 
   • If the percentage is zero for any period, enter -1.
7. Repeat these steps for all partners who changed or ended profit sharing during the tax year.
   • If there's no change in ownership for a particular partner, no entries are needed for that partner in this screen.
8. Review the Ownership Change worksheet in Forms > Worksheets and select the partner to view the worksheet. The weighted average calculation will only apply to the Profit Sharing Percentage.
   • Calculation of weighted-average will show columns A through F:
     A = Beginning date, B = Ending date, C = Percentage, D = # of Days in period, E = Total days, F = Weighted percentage (C*D/E)
   • Example: Partner 2: A = 1/1/2016, B = 5/15/2019, C = 50, D = 135, E = 365, F = 18.493151
   • Example: Partner 3:  A = 5/16/2016, B = 12/31/2016, C = 25, D = 230, E = 365, F = 15.753425

Related topics:

Transferring Capital Due to a Change in Ownership for a Partnership