I have deleted and recreated the partnership K-1 in TurboTax. This resulted in no changes.
The issue is not regarding the non deductible expense.
The issue is that this non deductible expense in Box 18 code C should be decreased from the cost basis of the asset, which Turbo Tax does not do. This appears to be a defect with the software.
The result is that the cost basis calculated in TurboTax is not equal to the cost basis reported on Form 1065 Schedule K-1 Box L (Partner's Capital Account Analysis) , "Current year net income(loss)"
Is there any way to manually modify a form to get around this?
I have spent hours trying to get around this software defect.
So far the only way I can get around this is to artificially reduce my "Ordinary business income(loss)", which does not match what is on the Schedule K-1.
This is not a good solution.
