Section 754 asset - how to include in UBIA

[PA CPA 900]

Does anyone know how to get ProSeries to include a Sect 754 asset in UBIA? I've had to manually override the Partners K-1 info, but ProSeries will not allow me to override the UBIA Report that prints the assets included in UBIA. The UBIA column to the right does not allow an override. I see quite a few posts on this topic back from 2019 and 2020, but no resolution and the posts were locked. It doesn't appear that ProSeries ever addressed this or corrected their program. 

[Taxes-by-Rocky]

Any chance the 754 asset is of the type that is amortized, rather than depreciated?

[PA CPA 900]

No, it's 39 yr Commercial real estate

[Taxes-by-Rocky]

Reason for the 754 election?  734 or 743 (presumably the former)?

Also, did you review the three check boxes on the asset worksheet:  754; 743(b); and ineligible for UBIA?

[PA CPA 900]

2 separate Sect 754 adjustments on this Partnership. #2 partner purchased interest. #1 partner inherited her interest from husband when he passed. On Asset Entry worksheet for Form 8825 I checked the Box for IRC Section 754 Adjustment. Down further on the page there is a section titled "Section 199a (QBI Deduction) Attributes". Line 1 is "UBIA for this asset". It did not fill in automatically so I entered the Sect 754 amount, same as Asset Cost at the top of the worksheet. The next line down has a box than can be checked that says "This asset is ineligible for QBIA". I did not check that box. So clearly the UBIA info is part of the asset entry worksheet, but then the UBIA info does not flow through anywhere on the return. I had to manually override in multiple places but the UBIA Asset Report does not allow overrides so I can't even include that in what I send to the client. Just got off the phone with Tech Support and they can't figure out and elevated it. Looking back through the Intuit Accountant's Community threads it seems this has been an issue ever since the 199a was passed. It shouldn't take 6 years for them to get this program up to par. 

[Taxes-by-Rocky]

You will need to check the literature.  I believe that IRC Section 754 adjustments that result from IRC Section 734(b) (i.e., property distributions or partnership retirements/buybacks) are entity level "step-ups" potentially applicable to all partners.  Whereas an IRC Section 754 adjustment under IRC Section 743(b) (i.e., for a sale or exchange between partners....and possibly an inheritance step-up...would need to look) is a partner level step-up.  Hence, only the entity level step-up would be included in the partnership's return and UBIA.  The partner level step-up under IRC Section 743(b) would need to be computed and reported separately, solely by the partner to whom it applies.  It appears that the 743(b) checkbox was designed for that purpose (see PS instructions).  Special allocation 'might' also get the asset into that partners UBIA on the Section 199A worksheet.  See that partners Statement A for 199A reporting.

Hope that helps.

[PA CPA 900]

Thanks for the input, but I had already researched that and was not looking for tax advise. This step up is computed at the partner level and reported as Line 13, Code ZZ deductions. My only issue is with the software since ProSeries is not correctly including the Sect 754 in UBIA and will not allow me to override the UBIA Report. 

[PA CPA 900]

Update to my question. ProSeries had me send a sanitized version of the client data file to them 3 weeks ago. Today I received a call that basically said their return may be incorrect and is not handling this properly, but they haven't had enough complaints about it to have the programmers address it. They apparently only fix bugs in their program when too many clients complain.