Partnership module - special allocation issues on Sch K-3

[sinadalley]

Most of the partnerships I prepare (200+) have only US source income. Most of those returns also have 743(b) Negative income adjustments (step-up depreciation). I appreciate that in my partnerships with only US source income, Lacerte carries the 743(b) negative adjustments shown on K-1 Line 13V over to the K-2 line 49 and even carries the same special allocations of those 743(b) adjustments to K-3 line 49 for the correct partners!  On the partnerships with specially allocated depreciation under Sec 704(c), I can still mirror the special allocations of depreciation I need on Sch K-3 when I do the data entry on screen 78.1 instead of screen 78.2.

However, I have a dozen or so partnerships that also have foreign dividends and foreign tax withheld. Once I start using Screen 78.2 rather than Screen 78.1 for inputting data for Sch K-2, I lose ability to specially allocate anything! I've been told by technical support that the IRS instructions don't provide for specially allocating anything on Schedule K-3, but that doesn't make sense because there are definitely sections of the tax code that require special allocations (734(b), 743(b), 704(c)) and Lacrete is programed to carry certain special allocations from the K-1s to the K-3s already. If the programmers just didn't have time to add that functionality for the 2022 software, I understand, but I'm not sure how to get these returns prepared and filed before the deadline if the software doesn't allow me to report what actually is happening in these partnerships. Do I resort to editing pdf forms and paper-filing?

Also, if the programmers need an example of what the issue looks like in my practice, I'd be happy to share....