Form 7217

[Pammer]

I was directed to this form when my client received a non-cash distribution on his K-1.  He does not recall what he received so it is difficult to determine the FMV of his distribution.  We have contacted the issuer of the K-1 with no reply and it's been months.  We may have to estimate since no one can inform us of what he received...UGH!

[BobKamman]

Who directed you to the form?

[sjrcpa]

So how does client not know what he received?

Is Form 7217 required?

Is this going to be a material item?

Did he give you all of the pages of the K-1? From my quick read, the partnership is supposed to provide both the basis of the property distributed and its basis.

[Pammer]

Bob,

Proseries directs you to the form when you place a C in box 19 on the K-1 entry.

[BobKamman]

You did the right thing asking the K-1 preparer for details, if they weren't already provided.  The IRS instructions are, "Other property (code C). Include all distributions of property (other than money) not included on line 19a that aren't section 737 property. In figuring the amount of the distribution, use the adjusted basis of the property to the partnership immediately before the distribution, taking into account any adjustments under sections 732(d), 734(b), or 743(b), as applicable. In addition, attach a statement showing the adjusted basis and FMV of each property distributed."  If you can't get that, and your client doesn't know his assets from a hole in the ground, than make an educated guess based on other details from this and prior K-1s.