Where do I reduce a partner's SE income on Form 1040 k-1 wks for sec. 754 depreciation?

Forum|Forum|5 years ago
October 15, 2020
4 replies
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How do I reduce a partner's SE income on his Form 1040 k-1 wks for sec. 754 depreciation?

Thanks.

ProSeries Professional

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Terry53029

Intuit Community Champion

Report the adjustments on an attached statement to Schedule K-1 using the codes for Other Income or Other Deductions, line 11 or 13

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david3Author

Level 7

Thank you for your help with this.

The information is already in Other Deductions on the K-1 wks. However, that doesn't reduce the SE income.

My question is how to actually reduce the SE income in PS for the Sec. 754 deduction. The taxable income is already reduced for this so I can't report it as UPE since this will reduce taxable income again for the Sec. 754 depreciation.

I finally just changed the number on line 14 of the K-1 wks that was imported from the client's 1065. Not sure if that will trigger a problem when the IRS matches the K-1 to the 1040.

Thank you.

T

Terry53029

Intuit Community Champion

see this link from Intuit:

https://proconnect.intuit.com/community/schedule-k-1/help/entering-a-section-754-or-743-b-adjustment-on-an-individual/00/3835

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