I am preparing an 1120 and I dont see where I can report the Section 754 Basis Adjustment. Should I reported net to net rental estate income?

[sjrcpa]

There's no such thing for a corporation. This is a partnership item.

[oscar-hergut]

The corporation received a K1 from the partnership 

[sjrcpa]

Oh. A 754 basis adjustment is a tax basis Balance Sheet Item. It does not affect  the rental real estate income (but an associated depreciation adjustment will)

[oscar-hergut]

It’s actually an adjustment to additional depreciation but I don’t see where reported in the procconect. 

[sjrcpa]

Where you enter the K-1 is there a place for additional deduction/loss?

[oscar-hergut]

No, I dont see any additional deduction section in the Schedule K-1 input.

[sjrcpa]

Then reduce the net rental income by the 754 depreciation and enter that amount. Maybe attach a statement

Net rental income XXXX 

754 Depreciation  -YYY

[oscar-hergut]

I think i would do that tank you.