1. It sounds like you want to calculate the correct beginning basis as of 1/1/2021.  You forgot to take the deduction in 2020.

I don't see the reason for making any basis adjustment as of 1/1/2021. There was no deduction in 2020 so you there is no reason for it.  

If you are you going to amend then you can do it.

Have I misunderstood? 

Now I need to admit that I have been thinking of a 754, which is my client's situation. So this might not be exactly on point. 

2)  Lacerte automatically puts the cy specially allocated depr on line 4 of the M-2.  I don't think LC doesn't automatically put it. My input shows that you choose whether to adjust Schedule K or Schedule M-1 or both.  So clearly I'm not understanding.  

Either I don't have the bandwidth or we need to share screens so I can better understand.