1065-US: Calculating the increase (decrease) in the partner's share of liabilities (FAQ)

Alerts and notices


How does UltraTax CS calculate the increase (decrease) in the partner's share of liabilities?


The increase (decrease) in a partner's share of liabilities is calculated by subtracting the prior-year value (from 2017 UltraTax CS) from the current year value on Schedule K-1, item K, Partner's share of liabilities. The prior-year value of a new or converted client cannot be determined; therefore, the partner's share of liabilities increase (decrease) may be incorrect. Use the Share of partnership liabilities (Force) fields in Screen Basis to override the prior-year or current-year share of liabilities.

Note: If the Section 752 information not provided field in the Federal tab in the Partner Information window in Partner Data Entry is blank, UltraTax CS adjusts each partner's increase (decrease) in liabilities by the decrease in liabilities resulting from the reacquisition and the decrease in liability treated as a distribution of money in the current year from section 108(i) elections entered in Screen CODI.

Related topic: Partner basis FAQs (1065)