Entering Partnership Schedule K-1 line 19a into the individual model

[hinsontaxservices]

I am new to Lacerte and cannot find exactly how to enter excess distributions reported on Schedule K-1 Form 1065 line 19a into the individual model. The best I have found is that it needs to be entered on screen 17 under dispositions. What I can't seem to figure out is how to enter it on that screen. The excess distributions should be reported under capital gains with a lower tax rate but Lacerte is not separating the amount and my client is being charged additional tax. How do I enter this so that the tax calculates correctly?

[abctax55 · Accepted solution]

Either:

Enter specific dates (i.e when the partnership interest started) and 12/31/19 (I assume you're doing a 2019 return...) to trigger long-term treatment.

Page down a bit & look for the box to check to force long-term treatment (it's half-way down in the first section  -  right after 'Expenses of sale').  Code 51, if you speak batch entry.

[abctax55]

AND... since you are new to Lacerte, be sure to ask 'us' questions.  Don't spin your wheels; some of us have use this software for more decades than we like to admit and are pretty good at making it jump thru various hoops.

May I ask what software you previously used?

[hinsontaxservices]

Thank you so much for the help. It did fix my problem. I previously used UltraTax and that program automatically calculated the excess distributions so I was not used to calculating it myself.