ProConnect HelpIntuit HelpIntuit

Entering a Disposition with Prior Section 179 from a Passthrough Entity In a Personal Return

by Intuit Updated 5 months ago

A Passthrough Entity is reporting a sale of an asset with Prior Section 179 on Schedule K-1. How is this entered in the Lacerte Program?

Solution

This transaction should be entered in Screen 17, Dispositions as a transaction linked to the original K-1:

  1. Navigate to Screen 17, Dispositions.
  2. Enter a Description of Property, Date Acquired, Date Sold, the Sales Price, Cost Basis and Expenses of the Sale.
  3. Check the box Disposition from K-1 supplemental information.
  4. In the Section navigation box on the left, click on Form 4797.
  5. Enter the Depreciation Allowed. If there was none, enter -1. Include the Prior Section 179 in this figure.
  6. Enter any Unused carryover of Section 179.
  7. Next it is necessary to tie the transaction to the proper K-1.
  8. In the Section navigation box, click on Corresponding Activity Information - Passive (8582 / At-Risk (6198).
  9. Using the drop down menu for the line Form number of related activity (Ctrl+T) select the appropriate Form or Schedule.
  10. In the Activity name or number (Ctrl+T) use the drop down menu to select the correct K-1.
  11. If appropriate check the box Include in at-risk/basis limitations.
Lacerte Tax 2018Lacerte Tax 2019Lacerte Tax 2020Lacerte Tax 2021

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

More like this

Dynamic AdsDynamic Ads