Ordinary Income on 199A Stmt A

[MykMiller]

I am working on an 1120S and my client has a gain on 4797.  It was on the sale of a vehicle.  The gain is not being added to ordinary income on 199A Stmt A and therefore not flowing over to my clients  K-1 stmt A correctly.  I can fix it on the K-1 Stmt A but get an error then on 199A.  Anyone else have this issue?

[mag41842 · Accepted solution]

I have a similar issue.  I added the 1245 gain as an adjustment on line 1b of the 199A worksheet and do not get an error message.  I had a similar situation in 2019 and the program added the gain as part of the ordinary income.  Inconsistent, and not sure if correct, but it worked for the 2020 return

[MykMiller]

Thanks !!