Hi k-1/1040 experts. I sure do still have box 20 code U 743b adjustment questions.
My K-1's always come with an entry in box 20 code U that says STMT and my understanding is that the requirement for the additional information it's referencing is this, according to the instructions for people that prepare k-1s:
For each partner, the total Sec. 743(b) adjustment net of any cost recovery as a single amount for all asset categories; and a statement showing the amount of each remaining Sec. 743(b) basis adjustment, net of cost recovery by asset category.
The corresponding footnote in the K-1 is always a table that for several asset categories (in this case, "buildings" and "land") lists three columns:
SECTION 743(B) ORIGINAL BASIS
SECTION 743(B) ACCUMULATED DEPRECIATION/AMORTIZATION
SECTION 743(B) REMAINING BASIS
The third column is, of course, what you get when you subtract the second from the first.
I feel like turbotax wants me to enter a single number for Box 20 line U and I think that single number is "the total Sec. 743(b) adjustment net of any cost recovery as a single amount for all asset categories" and I further believe that the partnership thinks I know how to generate that from the little table, but the partnership is wrong about that; I have no idea.
I've been ignoring this for years because I assume this basis adjustment only matters when the limited partnership is somehow disposed of or has some other kind of event. But maybe I am wrong about that?
So my questions are whether any number entered for box 20 code U actually affects the form 1040, and if so, how am I supposed to generate it from the little table the partnership provides?
Thanks!
