A_tax_preparer
Level 1

The client has an interest in a PTP that reports income and losses from three lower-tier PTPs. As I understand, losses from the K-1 should be subject to one basis limit but three separate passive activity limits for the three activities. I've looked all through the K-1 screen in Lacerte, and I cannot find a way to enter this so the software applies the limits correctly. Any and all help is appreciated.

0 Cheers
PhoebeRoberts
Level 11
Level 11

Set up a separate K-1 entry for each PTP. Use the Other Increases to Basis and Other Decreases to Basis fields to move basis around.