Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Industry Discussions
- :
- Tax Talk
- :
- Recourse Beginning on K-1 1065 to Form 1040
Recourse Beginning on K-1 1065 to Form 1040
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
PTL1
Level 1
09-27-2022
10:35 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have a client with several K-1 1065s along with other various forms of income. I have several years of 1040 returns to prepare. In several of the K-1 1065 information taken from the IRS Wage/Income Transcripts, there is a Recourse Beginning figure. Where is this entered on the 1040? IRS is nailing clients if this is not entered or accounted for on the 1040. Any help is greatly appreciated.
Labels
3 Comments 3
sjrcpa
Level 15
09-27-2022
11:40 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"IRS is nailing clients if this is not entered or accounted for on the 1040."
Really? There is no place this shows on the 1040.
It does enter into the basis/at risk calculation.
The more I know, the more I don't know.
PTL1
Level 1
09-27-2022
11:55 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I agree with you. There is no place to enter this on the 1040, even when entering the K-1 information in preparing the 1040. However, we have just recently had one of our clients get hammered by IRS because the Recourse Beginning figure was not accounted for on the 1040. I have searched and searched but have not been able to find a resolution yet. If and when I do, I will certainly post it for everyone to see.
Thank you for your reply.
sjrcpa
Level 15
09-27-2022
12:02 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
What software are you using?
What do you mean by "we have just recently had one of our clients get hammered by IRS because the Recourse Beginning figure was not accounted for on the 1040"?
Was there a deemed distribution due to a decrease in liabilities that wasn't picked up? Was the basis computed incorrectly and too much loss was deducted?
The more I know, the more I don't know.
