Reporting Ordinary income from Sale of PTP

[AB]

Sale of PTP  Form 4797 and Section 199

When entering the sale of a PTP with ordinary income on 4797, the sale on schedule D, does anyone know where in Proseries the ordinary income, so the amount gets calculated as part of the 199 deduction?  This amount is not included on the K-1, only as part of the sales schedule and requires a separate entry.

[IRonMaN · Accepted solution]

The K-1 worksheet will open up into an additional worksheet for dispositions that allows you to enter ordinary income information.

[PhoebeRoberts]

I can't speak to ProSeries, but Lacerte doesn't handle this without overrides. You have to manually increase the amount of PTP 199A income by the ordinary gain.

[AB]

Thank you! I figured out how to enter it on the PTP disposition form as ordinary income and then it flows to the bottom of the K-1 Entry sheet and to the 4797. I have about 50 PTP's so this solution seems to be working.