FORM 8978

[fjcomito]

Any idea where the information from Form 8978 goes on the tax return?

[jeffrey1]

IF ITS A REDUCTION OF TAX, IT GOES ON SCHEDULE 3, LINE 6C, BUT I DON'T KNOW HOW TO GET IT THERE......

[CNLuntaxr]

Has anyone figured out how to input this yet?

[George4Tacks]

While in the input or detail screen use Ctrl + F to start a search. Find an input field - Search for 8978 > Click on the "Partner's audit ...." and VOILA! There it is!

[naynay0328]

yea! - this has stumped us - we have 4  to complete - needed this answer -so a negative will be a positive on the 1040 correct

[CNLuntaxr]

First you manually prepare Form 8978, Lacerte doesn't do that. Looks like when the adjustment favors the taxpayer inputting a negative number in Screen 45.3 causes it to carry to Schedule 3 Line 6.  If you owe additional tax,  enter a positive number. Lacerte adds this to the total tax and increases Form 1040 Line 16.  Either way you get a diagnostic saying it can't be efiled, even after attaching the Form 8978.

[George4Tacks]

Press F1 at the input and you should get:
Partner's audit liability under section 6226 (Form 8978)
Other Taxes Screen 45; Code 117


Enter the amount of partner’s audit liability under section 6226, from Form 8978, line 14. A positive amount will carry to Form 1040, as an other tax. A negative amount will carry to Schedule 3, as an other credit.

[George4Tacks]

Entering a negative number gives diagnostic 53383, a positive gives 53567 - both give the same result. You must paper file.

One more reason to get the partnership to accept the audit results at the partnership level.