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Entering disposition information from K-1 to Form 4797 Part II, line 10

SOLVEDby Intuit3Updated March 15, 2023

To use the Passthrough K-1 screen:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Income.
  3. Select the appropriate K-1 input screen: 
    • Partnership Info (1065 K-1) or
    • S-Corp Info (1120S K-1).
  4. Locate the other income section:
    • Line 11 - Other Income for partnerships or
    • Line 10 - Other Income for S-Corps.
  5. Enter the amount in Ordinary gain (loss) to be reported on 4797, line 10, or in Passive ordinary gain (loss) to be reported on 4797, line 10.

To use the Dispositions screen:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Income.
  3. Click on Schedule D/4797/etc.
  4. In the Quick Entry grid, enter a Description of property.
  5. Enter the Date acquired
    • If this information isn't available, enter a negative date during the tax year, such as -01/01/18 for a 2018 return.
  6. Enter the Date sold.
    • If this information isn't available, enter a negative date that falls after the Date acquired, such as -12/31/18.
  7. Enter the net Section 1231 gain in Sales price.
  8. Click the Details button.
  9. Enter a 1 in 1=short-term, 2=long-term [Override], if the dates you entered in steps 5 and 6 were more than 1 year apart.
  10. Check the box Disposition from K-1 supplemental information (if applicable).
  11. On the left-side menu, select Form 4797.
  12. Enter -1 in Depreciation allowed (-1=none, triggers 4797).
  13. On the left-side menu, select Corresponding Activity Information - Passive (8582)/At-Risk(6198)/Investment Tax(8960).
  14. Scroll down to the Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960) section.
  15. Select the appropriate Form number of related activity.
  16. Select the Activity name or number.
  17. Check the box Include in at-risk/basis limitations, if applicable.

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