K-1's

[Debbi]

I have a Partnership that received a K-1 from another pass thru entity. (Partnership). This K-1 shows 

a $45,000 loss.  The Capital account shows a loss of $100,000. I noticed on the software there isn't anywhere to enter the basis and the program is taking the loss against ordinary income. Because of the basis, being zero, I thought the partnership cannot take the loss. So what do i do? It also show a distribution on the K-1, so wouldn't the excess of his basis be taxable? How do I do this on Lacerte?

Thank you so much. I am at a loss......

[abctax55]

You have to track, and override....  I use excel.  

And don't forget at-risk & non-recourse/recourse loan consideration.

[sjrcpa]

Compute the basis yourself and calculate the allowable loss. Enter the allowable loss in the partnership return. Maintain a schedule for your file showing loss in excess of basis for next year. Remember that capital account balance is hardly ever basis.

You'll have an M-1 adjustment for book loss/tax loss difference.

[sjrcpa]

We're on a jinx roll tonight Anna.

[abctax55]

Because we are to burned out to work on aaaaaaaaallllllllll  those returns staring at me from the various piles I have stacked about?