WileyCPA
Level 2
06-19-2020
04:47 PM
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Trying to enter K1 information from an S Corp on an individual return. Following a two step process listed as a solution from intuit community. When I enter step one I get a critical diagnostic saying recapture amounts from 4797 part IV should be entered in the input area for the form where the deduction was entered originally. How can I fix this? I have also entered step two, still the critical diagnostic.
Step One: Entering Section 179 Recapture:
- Click the Detail tab
- Navigate to Screen 17 - Dispositions
- Select the button for Carryovers/Misc
- Locate the section Form 4797
- Locate the subsection Recapture 50% or Less Business Use
- Enter the total amount of recapture in the Section 179 expense deduction field
- This input flows to Form 4797 Page 2, Part IV, Line 33
Step Two: Entering recapture as ordinary income and linking it to Schedule K-1:
- Click the Detail tab
- Navigate to Screen 17 - Dispositions
- Enter the Property Description, Date Acquired, Date Sold, Sales Price, Cost or Basis
- Scroll down to the section Form 4797
- Enter "-1" in the field Depreciation allowed (-1 = none, triggers 4797)
- Scroll down to the Section Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960)
- Note: In 2012 and earlier this section is titled Related Activity Information - Passive (8582) / At-Risk (6198)
- Select Schedule E (S corporation) from the Form Number of Related Activity drop down menu
- Select the name of the K-1 from the Activity Name or Number (Ctrl+T) drop down menu
- Check the box to Include in at-risk/basis limitations
- If the asset being disposed of was used in a passive activity, go to Passive Disposition
- Enter 3 in the field 1 = Complete Disposition, 2 = Partial, 3 = Separately stated on K-1
- This input reports the Section 179 recapture as ordinary income on Form 4797, Page 1, Schedule E, p2, and includes the recapture in basis calculations
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