UltraTax/1040 combines K1s received from the same partnership into one Partner's Basis Worksheet

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Question

Why does UltraTax/1040 combine Schedule K-1s received from the same partnership into one Partner's Basis Worksheet?

Answer

When receiving two or more 1065/1120S Schedule K-1s from one entity, UltraTax CS combines each unit into one Partner’s /Shareholder’s Basis Worksheet. Per Revenue Ruling 84-53 the IRS ruled that a partner holding more than one partnership interest in a partnership has a single, aggregated adjusted basis in those interests. This rule applies regardless of whether the partner holds general interest, limited interest or any combination of general and limited interest.

Related topic: Partner's and Shareholder's Basis Worksheet FAQs 

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