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Question

Where are partner liabilities reported?

Answer

UltraTax CS reports a partner's liabilities in two places: Schedule K-1 and the Partner's Basis Worksheet.

• Schedule K-1 - UltraTax CS sums the at-risk and not at-risk liabilities for each nonrecourse, qualified nonrecourse, and recourse liability for Schedule K-1, item K. If any not at-risk liabilities exist, a statement showing the breakdown of all liabilities will print for each partner on Schedule K-1, box 20, code AH - Other information. Use the Print supplemental liability schedule? field in Screen K1Misc in the Partner Info, Basis folder to modify the print condition of this statement.
• Partner's Basis Worksheet - UltraTax CS uses the difference between the total of all liabilities on the prior and current year's Schedule K-1, item K to determine the net increase or decrease for the basis worksheet. 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 in the Partner Info, Basis folder to force a different amount for prior-year and current-year nonrecourse, qualified nonrecourse, and recourse 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 liabilities FAQs (1065)

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