PTP Sec 751 Gain as Ordinary Income form 4797 How do I enter this in the Ind Module

[imjeb4]

I have a sale of a PTP that has a Gain subject to Recapture as Ordinary Income that has to flow to form 4797 Part II Line 10

[George4Tacks]

Try the input for Line 11 3rd item is Ordinary gain (loss) to be reported on 4797, line 10.

[imjeb4]

Thanks George for responding.  I need the amount to go to the Form 4797 Line 10 as an Ordinary Gain.

It says to do this thru the disposition screen which I cannot figure out

Jim

[George4Tacks]

What is "it" in "It says to do this thru the disposition screen"

Did you even try the entry I gave to you?

[PhoebeRoberts]

George's suggestion gets it on the right line, but with the description "From K-1," rather than with 1040-level disposition detail. It also affects the basis calculation whether you want it to or not. Not materially wrong, but not the presentation I prefer. That said, PTP stuff in general has kind of awful presentation.

In Screen 17.1, my description is {PTP Name} Ordinary Gain

Dates acquired and sold per disposition schedule. In the field directly below those, override with 1 for short-term.

Sales price is the ordinary income piece. If you have a different ordinary income piece for AMT and for regular tax, enter the sales price as basis, then under Form 4797 enter the ordinary income piece again under depreciation allowed, and the AMT ordinary amount as AMT depreciation 4 rows farther down. If no AMT adjustment, you can omit the basis number and just enter a -1 under depreciation allowed.

Look at the 4797. Look at the AMT 4797. Adjust input as seems appropriate.

Don't forget to pick the ordinary gain up as PTP QBI income!

[DB6]

How do I make sure and pick the ordinary gain up as PTP QBI income?

[Lavanna]

I had a similar situation with an S-corp disposition of Section 179 asset.  I entered on the Form 20.2 pass-through screen line 17 Section 199A other income column.  Not sure if that is proper, but it worked.

[fescofield]

Phoebe's post of 3/20/20 is consistent with my approach, but the amount still does not carry to Form 4797, Part II, Line 10.  There seems to be no override of other way to get the description and amount to Line 10 via the Screen 17.1.  Anyone have a hint how to push it to the proper line?

[JesusIsHeaven]

I have a similar situation - Energy Transfer LP - I received K-1 that has other information under line 20AB section 751 gain then under the sales worksheet it lists the initial cost basis and cumulative adjustments to basis leaving current basis negative then in column 7 it says section 751 gain subject to recapture as ordinary income, also received YE 1099 which list the sale of the above and shows proceeds with zero basis which makes sense as the cumulative basis is negative. My question do I report the proceeds with zero basis and the gain subject to recapture?

[abctax55]

@JesusIsHeaven 

Are you using Lacerte software?   

[JesusIsHeaven]

Yes using Lacerte

[George4Tacks]

@JesusIsHeaven It is best to start a new question, rather than tagging on to a old "similar" thread.

Report the 1099 as usual, and use the k-1 to make adjustments to whatever basis the 1099 might show. I am assuming it is reported without basis being reported to IRS. I generally use Ctrl + E to write myself some notes. 

Bookmark this for Lacerte and K-1s https://proconnect.intuit.com/community/schedule-k-1/help/entering-partnership-schedule-k-1-line-box...

[JesusIsHeaven]

Thanks so much for the response, that is what I had done, but wanted to bounce off a few colleagues. I have used Lacerte since 1988 and have never used this resource and didn't know how to start a new post, so that is why I continued with the other post, sorry for the confusion.

[George4Tacks]

@JesusIsHeaven  How to post:

Start with the search, which is at the top. (Really a horrible search, but that is another topic).
If you don't find what you want then you "ask the community"

That gets you to this:

For example you could include an image of the grid on that K-1, but not include any client info.

[Joe 75]

How do I apply your answer to JesusIsHeaven in TurboTax premier? I have an identical situation for a total PTP sale in 2021 on PAA, that has a significant Sec 751 Ord Income Recapture Gain. I completed the interview and entered the amounts from Line 20AB, but nothing appears on the K-1 Line 8d of Part III, Section A or on Form 4797, Part II, Line 10.

[abctax55]

@Joe 75 

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[Dr T]

Sorry I'm late to the game.... I just broke the code.

Pass-through K-1's Screen.

Screen 20.1 Line 11 look for "Ordinary Gain (loss) to be reported on 4797, line 10."  It's just that simple!

It's not in the the Dispositions and this is where we all are looking at.  These discussion boards.... I'm sorry you need to be more spot on. Because, I can not sit here and be a code breaker. I spent two hours trying to find it. 

Sorry Jim, I had the same problem.

Jason

[PhoebeRoberts]

Note that your method is also George4Tax's preferred method, as per his response to this post more than 2 years before yours.

Much of the rest of the thread involves discussion of the pros and cons of that method.

[abctax55]

"...These discussion boards.... I'm sorry you need to be more spot on"

One does get what one pays for around here 😉

[Dr T]

Once and great while I'll check out the condition. I just get tired of everything has to be so difficult. People lost their common sense and plus why can we just kiss.

I'm the type to get to the point. I do not like skating around. I do not have time. Time is money and money is time. Very precious commodity here.

You're right you get what you pay for!..... That's why you call the Doctor!

ABC, you have a great day. Hope to see you again.

Dr. T

[mjain135]

I am having this same issue.

On Disposition screen, I entered:

Proceeds as stated on 1099-B

Cost Basis - 0 as stated on 1099-b

Where do I input gain subject to recapture as ordinary gain, and cost basis stated on sales schedule of K-1?

Please help! I am so confused.

[George4Tacks]

For those that 1,000 words are not enough.