Re: Schedule K-1 Sections A&B columns (c) and (d) errors?

t_taxslave1 — Sat, 13 Apr 2024 20:53:24 GMT

I am using the Desktop version. Both forms mode and step.

The negative value of Section 1231 gain in the K-1 worksheet column (c) causes the taxable income to go DOWN, which cannot be correct. It does offset LT gains on Schedule D, but that should be it.

If I override the negative sign on column (c) of the K-1, everything seems to be correct, i.e. in Schedule E, Forms 8582, and 4797. Can someone explain why a 1231 GAIN turns up NEGATIVE in column (c) of the K-1 and confirm if this is a TTax error? The IRS thinks so, but before arguing I wanted to get the Community's word of wisdom. I already spend many hours trying all imaginable forensics and cannot find another explanation on my own.

Thanks in advance!

Re: Schedule K-1 Sections A&B columns (c) and (d) errors?

nexchap — Sun, 14 Apr 2024 00:50:05 GMT

The sum of Col c&d will always match the sum of Col a&b, and they're straight calculations.

Are Columns a and b correct? 'a' is what you entered this year, but is also impacted by Form 6198 if that's in play for you. Right clicking the cell will show you the source. 'b' is just prior year's carry over.

Col c should only be non-zero, and negative, if 1) a+b are negative AND 2) you have passive income showing up elsewhere in c which is allowing TT to release some of your passive losses rather than suspending them.

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Re: Schedule K-1 Sections A&B columns (c) and (d) errors?

Re: Schedule K-1 Sections A&B columns (c) and (d) errors?