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

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.