"..meaning my answer is no more reliable than any other random person's uncited conclusion!.."

I would be inclined to argue that point  🤣

Auditor: What's this Subpart F income? Why did you call it a dividend?

Hapless preparer: Heck if I know. Some random person on the internet said that was where to put it!

Thank you! I had already included it as nonqualified dividend income as an entry in the dividend screen. Then in the K-1 screen I increased the basis. I thought about including it as misc. income but then it would not have gone to the 8960. The only description on the K-1 is "Subpart F Income".

I'm not sure why Lacerte has a spot for it in the K-1 input when it doesn't go anywhere. They do give you a diagnostic but the only thing that does is let you know you have more work to do if you hadn't figured that out already.

Thanks again. Always nice to have a second opinion.

I include it with the entity's other dividend income in the K-1 input screen, which avoids the manual adjustment to basis. You lose the ability to specify that it's the Subpart F income, but the only return I have it on has 2 pages of statements listing the dividends already, so you kind of need a map for it regardless.

I thought about that as well but I had PFIC income and made a QEC election so I had basis adjustments to that K-1 anyway. Most of my clients with PTP"s don't know there getting a K-1 until it comes. The numbers you end up floating through the return are awfully small on most of them even with a $ 25,000 investment. To do it right takes just as much time as if it were a million dollar investment. Very frustrating for me. This one has 19 entities listed on the Form 926 information sheet!

Agreed, worthless beasties.

I really hated PTPs until I had a client with those stupid hedge fund investment partnerships.

Form 926 has a pretty high threshold, says my memory. Even on a million dollar investment you have to be unlucky to have to file.