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I have a commercial rental real estate partnership filing a Form 1065. Since it is rental property, the only activity is on Form 8825. Client purchased an asset correctly classified as Qualified Improvement Property which qualifies for Sec. 179. The program however will not carry this to the K-1, which also results in an error on Schedule M-1. The program doesn't see any activity on Page 1 of Form 1065 (which there isn't any, nor would there be) so it doesn't deduct the Sec. 179.
It is somewhat unusual but not out of the ordinary, so I feel the program should do the correct calculations. I really don't want to perform all kinds of overrides, because then I also have to do the same on the two partners' basis schedules.
Thanks,
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Does the rental rise to the level of a "Trade or Business"?
Section 179 is only allowed for a "Trade or Business" and ProSeries automatically assumes a rental does NOT rise to that level.
If the rental does rise to the level of a Trade or Business, then you go to line 11 of Form 4562 and either enter the business income directly or double-click it to add the business income.
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Thanks for the quick reply, you were a big help.
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You are welcome!