Technically this should have been reflected on your K-1 line 13 Code W and then identified as a Section 754 adjustment.
Not the end of the world. You can do one of two things:
- Using the TT input screens enter it as noted above as if it were reflected this way on your K-1, or
- Net the Section 754 amount with your line 1 amount.
Doubt you will receive any kind of a notice. If you do, then just respond that the partnership reported this amount in box 20, enclose a copy of your K-1. Send your response certified mail return receipt requested.
*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.
