taxladyinOR
Level 1
‎02-12-2022 06:04 PM

It it a final K-1 and taxpayer has a negative ending basis.  Withdrawls/distributions exceeded basis.  

So where in Lacerte do I enter this income and how?

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sjrcpa
Level 15
‎02-12-2022 06:13 PM

There's no such thing as negative basis. You can have a negative tax basis capital account.

Distributions in excess of basis are reported on Schedule D/Form 8949 as a capital gain transaction.


The more I know the more I don’t know.
taxladyinOR
Level 1
‎02-13-2022 08:32 AM

Yes, I understand that.  So is there a place in theK-1 screen to make it flow over to Sch D?  If not, then what would I do in the Disposition screen?   And what do I put for description?

Thanks. 

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George4Tacks
Level 15
‎02-13-2022 08:38 AM

You must do this manually in Dispositions. Description would be the name of the Entity. This is  a 2=basis not reported on 1099-B


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