You should have inquired about this at the beginning of this investment:
- If you have not accounted for this on prior year returns, then you may want to consider amending your tax returns.
- The actual Section 743(b) adjustment should be reflected on your K-1 in Part III box 13 Code V.
- This amount should be netted with the amount in either box 1 or 2 of your K-1.
- The information in box 20 is just an overall picture of your Section 743(b) adjustment. It reflects the total amount of the adjustment (original basis), the cumulative amount allocated to you (accumulated depreciation / amortization), and then the remaining adjustment that will be allocated in future years until you either sell the investment or the adjustment period is complete.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
