This article will help you enter a Schedule K-1 distribution for box 19, A on a partnership or fiduciary return in Lacerte.
If your client is a partnership or S-corporation that got K-1 distributions from another business and wants to pass those distributions on to their respective partners or shareholders, see here instead.
How to manually track K-1 distributions
There's no specific input for K-1 distributions in the partnership and fiduciary modules.
Lacerte also doesn't can't track basis or at-risk limitations of Passthrough K-1s in the fiduciary module.
So, the basis—including Line 19, Distributions—should be tracked manually on Screen 51, Notes.
Basis Limitation worksheet:
Adjusted basis at beginning of year
- Plus additional amounts invested in current year
- Less current year distributions of money/property
- Plus/Minus change in partner's share of liabilities
- Plus/Minus current year income from partnership
- Equals adjusted basis used for basis limitation
- Minus the loss allowed by basis limitation
- Equals basis at end of year
Optional input for entering passthrough K-1 distributions
To be reported and taxed on the partnership/fiduciary level:
- Go to Screen 25, Passthrough K-1's.
- Scroll to Other Income and Deductions - Passive (11F) (13W), or Other Income and Deductions - Nonpassive (11F) (13W).
- Under the Federal column, enter the amount of distributions in the Other (Ctrl+E) field.
To be reported and taxed on the individual level:
- Go to Screen 46, Schedule K-1 / Grantor Other Info.
- Enter the amount in total in the All Bene / Gtr input, or enter a specific amount allocated to each beneficiary by selecting each beneficiary listed.