Indicating a Publicly Traded Partnership (PTP) in Lacerte

To indicate a PTP in the Partnership module:

1. Navigate to Screen 5, Other Information (Schedule B)
2. Check the Box Partnership is a Publicly Traded Partnership.

This will check question 5 as "Yes" on Form 1065, Schedule B. (Question line will vary by year)

To indicate a PTP in the Individual module:

1. Navigate to Screen 20.1 , Passthrough K-1s.
2. Select the applicable Partnership from the left navigation panel or Click Add to create a new activity.
3. Check the box Publicly Traded Partnership (code 33) under Part 1- Information about the Partnership.
4. Enter all other necessary information from the passthough K-1.

Notes*

A publicly traded partnership is any partnership an interest in which is regularly traded on an established securities market regardless of the number of its partners. This does not include a publicly traded partnership treated as a corporation under section 7704 of the Internal Revenue Code.

A publicly traded partnership that has effectively connected income, gain, or loss must pay withholding tax on any distributions of that income made to its foreign partners. In this situation, a publicly traded partnership must use Form 1042 and 1042-S (Income Code 27) to report withholding from distributions. The rate of withholding is 35%.

For more information about the withholding requirements for publicly traded partnerships, refer to Rules Applicable to Publicly Traded Partnerships and Revenue Procedure 89-31, as amended by Revenue Procedure 92-66