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Troubleshooting partnership diagnostics ref. 334, 335, 25286, and 35624

SOLVEDby IntuitLacerte Tax16Updated July 14, 2022

The following diagnostics are generating in Lacerte:

  • The Partner's total profit allocation percentage does not equal 100%.(ref. #334)
  • The Partner's total capital allocation percentage does not equal 100% (ref. #25286)
  • The Partner's total loss allocation percentage does not equal 100%. (ref. #335)
  • The Partner's total profit allocation percentage does not equal 100%.(ref. #35624)

Data entry may be affecting the total percentage values to either be less than 100%, or more than 100%.

You need to make sure the partner percentages equal 100% and that there are no overrides or incorrect/incomplete entries. Follow each set of instructions below in order to resolve these errors.

 

These critical diagnostics are informational, due to the impact these percentages have on the overall partner calculations. However, they aren't e-file critical and won't affect the ability to e-file.  

Follow these steps to make sure partner percentages equal 100%:

  1. Go to Screen 8, Partner Percentages.
  2. Enter a percentage under the following columns:
    •  Beginning and Ending Profit
    • Loss Sharing
    • Ownership of Capital
  3. Make sure the Totals for each column equals 100%.

If the Totals equal 100%, you may have overrides entered on Screen 32.1, Schedule K-1 Miscellaneous.

Follow these steps to check for overrides:

  1.  Go to Screen 32.1, Schedule K-1 Miscellaneous.
  2. Select a partner from the left navigation menu.
  3. Locate the Schedule K-1 Miscellaneous Information section.
  4. Scroll down to the Gross Receipts per Regulations 1.59A-7(e)(2) [O] (Partnership, Corp, or LLC Partners Only) subsection.
  5. Make sure there are no entries in Schedule K-1 allocation percentage (xx.xxxx) [O] (code 500).
  6. Repeat steps 2-5 for each partner.

If there aren't any overrides on this screen, you may have incomplete or incorrect entries on Screen 9, Change of Ownership.

Follow these steps to check for incomplete or incorrect entries:

  1. Go to Screen 9.1, Change of Ownership.
  2. Select a partner from the left navigation menu.
  3. Check for any incomplete or incorrect entries.
    • Percentages entered here can affect the calculation of the Schedule K-1, but won't change the percentages in Box J.
  4. Repeat step 2 and 3 for each partner.
    • If these totals don't equal 100%, you must use Screen 29, Special Allocations to allocate the unassigned amounts. 
    • If there are partners listed which have no interest in the partnership in the current year, they must also have information entered for the periods indicated, with -1 for percentages.

If there aren't any entries in Screen 9.1, Change of Ownership, you can change your settings to require manual entry of the partners' ownership of capital.

Follow these steps to require manual entry of partners' ownership of capital for all clients:

  1. From the Settings menu, select Options.
  2. Select the Tax Return tab.
  3. Scroll down to the Federal Options section.
  4. Set the Partners ownership of capital to Manual.

Follow these steps to require manual entry of partners' ownership of capital for only one client:

  1. Go to Screen 3, Miscellaneous Information.
  2. Within the User Option Overrides section.
  3. Enter a 1 in the Partners' ownership of capital: 1=manual, 2=automatic [O] field.
    • This option will override your user options.

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