Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProConnect Hot Topics.
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProConnect Hot Topics.
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- ProConnect Tax
- :
- ProConnect Tax Discussions
- :
- Re: UPE and basis adj
UPE and basis adj
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
bcarrillo
Level 1
07-03-2023
07:45 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Current year UPE exceeds a partner's basis resulting in basis limited disallowed partner expenses. Is an adjustment to increase outside basis "Additional amounts invested in activity in current year" on the 1040 (K-1 basis input section) appropriate here? It seems such can be treated as a deemed capital contribution; however, guidance to support treatment is not clear.
Labels
2 Comments 2
TaxGuyBill
Level 15
07-04-2023
05:12 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'm not sure of the answer, but wouldn't it just be a suspended expense/loss, just like if the K-1 had a loss that was limited due to Basis?
I understand your thought about a deemed capital contribution. I haven't seen anything that allows an option/election to treat UPE as a capital contribution, but maybe I just haven't heard of it.
bcarrillo
Level 1
07-14-2023
01:57 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks for the feedback.
