1065 - How to allocate Self Rental income to one partner

Forum|Forum|5 years ago
February 23, 2021
5 replies
70 views

One member of this partnership has an office in the building. In ProSeries, how can I enter a special allocation for *only* the self rental income to this one partner? The other members would have all passive commercial real estate rental income and $0 for self-rental.

please help!

ProSeries Professional

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dkh

Level 15

Go to K1 Worksheet bottom right of the Each Partner Information has Special Allocations by Ratio or Amounts that will tie into Form 1065 page 4, next to each line item is column for SA

M

MuppetslayerAuthor

Level 2

This solution allocates only the total rental income as shown on the 8825 and Schedule K. This issue relates to special allocations by activity. Specifically, to enter special allocations for commercial real estate and self rental income by partner.

This client has a mix of both since it's a large building with multiple units and two of the four partners operate their businesses on premises. It would be incorrect to allocate self rental passive losses to a partner that does not operate a business in one of the units.

dkh

Level 15

The bottom of each member/partner's K1 has a Supplemental Information Smart Worksheet - can you use that space to report the allocation required?

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