The partners receives guaranteed payments and makes elective deferrals into the 401(k) plan. What is the best way to enter this in Lacerte
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It is handled on the 1065
https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/entering-profit-sharing-c... is a starting point
This may also help https://proconnect.intuit.com/community/form-1040/help/entering-partnership-schedule-k-1-line-box-13...
I am preparing the K-1 and the Form 1065. In Screen 22 under other deductions I enter Code R for the retirement contribution that the partners withheld from their guaranteed payments they made. The guaranteed payments listed on the K-1 includes the elective deferral. Then in screen 27.1 - Deduction on Schedule K not charged against book income I enter it again. If I do not do that my net income per books on Schedule M-1 line 1 does not agree. My problem is that on Schedule M-2 line 3 the net income per books (as adjusted to tax basis) is understated. And as a result the Partnership's capital account balance line 9 is also understated. In order to fix this I entered the elective deferrals in line 4 as other increase but it is not way I want to prepare this tax return. There is no mechanism for me to add back the elective deferral on Line 3 of Schedule M-2. So I thought perhaps there is a different wat to enter the elective deferral.
I am having the same problem in proseries. why is this so difficult? In the past I would M-1 it, but the schedule M-2 net income is off by the contribution amount? What am I missing here?
I have the same problem. Someone please enlighten us!
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