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

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

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 

Share This