Form 1065 top of page 5 is reporting net loss under limited partners for partners that are general and active partners? They are properly marked as general partners in partner info (screen 7) Can someone please help on this?

[Shelley]

I have a partnership return with 2 General partners and one active limited partner and one passive limited partner. They are properly marked in screen 7 Partner info but in Form 1065 page 5 at the top Analysis of Net Income (Loss) the losses are all going to limited partners. This is incorrect but I can't figure out how to correct this. Please someone help me!

Thanks,

Shelley

[George4Tacks]

What are your percentages in Screen 8? (Note all entered as whole numbers 1% is 1 and 90% is 90)

[Shelley]

They all add up to 100% I have been doing returns for 10+ years.The general partners portion of net loss in this case should populate on 2b not on line 2a.

[Shelley]

Sorry I said it backwards--it should populate on 2a NOT on 2b where it is currently.

[Shelley]

I just checked and it populated the wrong line last year as well and no one noticed. They had income last year so the active versus passive is more important this year. The K-1's are correctly marked as General Partner.

[George4Tacks]

I guess I need to pay closer attention. I see what you are speaking of. Maybe @PhoebeRoberts could comment as to whether or resident expert sees the same issue. It could be program glitch or an interpretation issue. 

In the meantime you can send the file to Lacerte for their comment. Use Ctrl + L to start an e-mail to Lacerte. You can include a copy of the file with detailed analysis of what you believe is an unexpected behavior and @IntuitGabi could possibly get an employee to respond to this thread. 

[PhoebeRoberts]

What type of entity do you have in Screen 1 Miscellaneous Info? If Limited Liability Company, the presentation you describe is the one consistent with the 1065 instructions.

[kgudgel]

Thank you for pointing this out!

I had the same issue on a 2021 return in ProSeries.  Even though this is a Lacerte discussion it answered my question!!!

(And like the original poster, last year was the first time I did this partnership and they had profit last year, so not as big of a difference.  But with the loss this year, I needed to investigate.)

[IntuitGabi · Accepted solution]

Thanks for reporting! This has been fixed and we confirmed it is available in the most recent update. Learn about Downloading and installing Lacerte updates.

[missydennis]

This has not been solved this is doing the same thing as mentioned above in 2022 Lacerte.

Form 1065 top of page 5 is reporting net loss under limited partners for partners that are general and active partners? They are properly marked as general partners in partner info (screen 7) Can someone please help on this?