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How to allocate unrecaptured 1250 gain for a Schedule K-1 (Form 1065) in Lacerte

by Intuit Updated 11 months ago

This article will help you specially allocate unrecaptured Section 1250 gain from a disposition of business assets (Schedule K-1, box 9c), other than the profit sharing percentage entered in Screen 8, Partner Percentages.

Follow the steps below:

  1. Go to Screen 29, Special Allocations.
  2. Select Income (Sch. K-1, Boxes 1–11) from the left section menu.
  3. Select Unrecaptured Section 1250 Gain.
  4. Select Disposition of Business Assets
    • If this is from a K-1, use From Passthrough Entities in the same section.
  5. Select the Allocation Method from the dropdown (Lacerte will default to amount).
  6. Allocate the amount as per the partnership agreement.
    • If applicable, allocate the Section 1231 Gain(Loss); the unrecaptured section 1250 gain from a sale of business assets is a part of this gain.
  7. To confirm the allocation, view Box 9c on the Schedule K-1 in the Forms tab.
Lacerte Tax

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