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

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 Input Return ⮕ Special Allocations.
2. Select Disposition of Business Assets. 
   • If this is from a K-1, use From Passthrough Entities in the same section.
3. Select the Allocation Method from the dropdown (the default is amount).
4. 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.
5. To confirm the allocation, view Box 9c on the Schedule K-1 under Check Return.