How to Enter separate activities from a single K1?

[bherr2000]

What screen do I use to enter separate activities from a single K1?

I have K1s that may have 4 real estate properties.  I want to be able to enter in each activity vs the total number to track specific items.  ie - we sell one property and it frees up PAL

[evietax]

I have asked for this change multiple times.  If CCH can do it, why can't Lacerte do it?

[StknCPA]

And CCH was already doing this when I last used it, which is at least 15 years ago. Probably 20.

[PhoebeRoberts]

I personally just set up each activity as its own K-1, and maintain the combined basis schedule in Excel.

[evietax]

This is a very common situation and should definitely not require a workaround.

As I said, if CCH can do it, Lacerte should definitely be able to do it.  Can't  understand why they don't address the issue.

[TaxGuyBill]

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@evietax wrote:

As I said, if CCH can do it, Lacerte should definitely be able to do it.  Can't  understand why they don't address the issue.

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Every software is different.  If the software was programmed exactly the same, there would not be a need for more than one type of software.

If you like how CCH is set up better than Lacerte, then use CCH.

[StknCPA]

That is what I do, too, but that does not mean that Lacerte should or should not have this capacity. It definitely should have this.

Do you enter the same TIN number (i.e., the partnership TIN) for each of the activities? Are you concerned about matching errors?

[StknCPA]

Just because someone likes the way a different program does one item does not mean they think the other software is better in its entirety, nor does it mean they think all software should be the same.

Adding this "feature" would be an improvement to Lacerte and would improve prepare efficiency.

The more returns you prepare with taxpayers who are partners in partnerships with multiple activities, the more important this becomes.

It sounds increasing like the IRS is about to crack down on K-1 income and basis limitations. Any help in this area would only be beneficial.

[PhoebeRoberts]

Yes, I use the partnership EIN for each activity. 

My folks with fewer separately-stated activities have never gotten a matching notice. My folks with more separately-stated activities have also never gotten a matching notice, but even with an Excel schedule calculating what the Lacerte presentation ought to be, it takes me hours to proof SchEp2. The IRS computers don't stand a chance.

The last time I had a "prove every number on this tax return" audit, the in-person auditor, with a copy of the complete return showing Sec 179 carrying forward to the current year and limited to the amount of business income, asked me why the return didn't deduct the full amount of Sec 179 arising on the current-year K-1. The IRS folks who deal with 1040s are not particularly savvy when it comes to entity issues, which is no surprise - no one can know everything. The switch to BBA / Centralized Partnership Audit Regime IMHO was implemented as a partial solution to that problem.

The requirement to attach basis schedules is a way to keep honest people honest, not a way to catch cheaters.