Schedule K-1 Form 1065 Partner's Share of Net Unrecognized Section 704(c) gain

[Justin67]

I'm trying to fill out my Schedule K-1 in Turbo Tax Home & Business. I have a section on the K-1 form 1065 under Part II, section N. The title of the section is "Partner's Share of Net Unrecognized Section 704(c) Gain or Loss. I have amounts here I need to enter. However, I cannot find this in Turbo Tax anywhere. I'm using the Mac version and I've gone through the questions to try to find it and also am in the Forms section. However, this part of the K-1 form just seems to not exist in Turbo Tax at all. Does Turbo Tax not support this? If not, how would I file this?

[PatriciaV · Accepted solution]

Section 704(c) gain or loss occurs when a partner contributes property to the partnership and the property’s tax basis differs from its fair market value. The application of Section 704(c) affects how your partnership income is allocated. This is provided for your information, but is not reported on your personal 1040 return.

The IRS Instructions for Form 1065 Schedule K-1 Item N describe this further: 

"The partnership is providing this for your information. If the partnership disposes of the property or there are special allocations due to depreciation, depletion, or amortization, the partnership will report these items on other parts of Schedule K-1."

[Justin67]

Ok thank you! I've also noticed that Box 16 is checked and a K-3 is attached. Turbo Tax walked me through this some, but it only asked a few questions and it didn't cover some of the items in section E of the K-3, such as part #3 and 9 which are marked as Yes on the K-3. Is there a place in TT to enter this information?

[AliciaP1]

TurboTax walks you through the parts of the K-3 that need to be entered in order to file your tax return accurately.  If the line items are not addressed specifically, it is not necessary to enter the information.

@Justin67