Why doesn't current Section 59(e)(2) expenditure carryforward to Schedule E pg 2?

[mkempton]

Personal return

Form 1040

2021

IDC entry from 1065 K-1 Line 13 doesn't carryforward to Schedule E.  Entered as a positive number.  Didn't elect to amortize.  Thinking it was a basis limitation, entered a larger amount in additional amounts invested this year in the Basis tab.

Thank you in advance for your support.

Mark

[PhoebeRoberts · Accepted solution]

You've entered it as a passive K-1. Note that if the operated mineral interests are owned through a liability-limiting entity (your guy is not a general partner in the current year), passive is the correct answer. Many drilling partnerships are structured to "flip" from a general partnership to a limited partnership once the wells pay out.

[mkempton]

Phoebe, thank you.  After posting my question I thought that might be the reason and updated the software.  All the best, Mark