Final Disposition / Sale of Partnership Interest - Lacerte

[David10]

Hi:

I have a client who sold interest in LLC taxed as a partnership in 2020 and received final k-1. This was a schedule K-1 (1065) . It was not a PTP. He was also an employee and its non-passive activity. There were no  passive carryovers nor  depreciation involved. Also, no hot assets sold - receivables or inventory.

- Does Lacerte have a special worksheet or area that would connect the 1065 k-1 (screen 20 - passthrough k-1) to dispositions (screen 17) for this type of situation ? I don't see anything. I ended up taking the total sales proceeds and subtracting his final year adjusted basis in screen 17 - disposition 

Thanks, D 

[sjrcpa]

Yes you can link the sale to the K-1 entity.

In the Dispositions Screen 17 go down to Corresponding Activity Information. It works for nonpassive activities, too.

[David10]

Thanks so much. You just also helped me realize that client may not have to pay the NIIT tax on sale of partnership, also.  Rock on ! Thanks ! 

[sjrcpa]

You're welcome.