UltraTax CS
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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Question
Why do the Schedules K-1 state that there is a distribution in excess of partner basis?
Answer
IRC section 705 states that partner basis cannot be decreased below zero. When distributions or decreases in the partner's share of partnership liabilities would decrease the basis below zero, a deemed distribution restores the basis to zero.
Note: To suppress this statement from displaying on Schedule K-1, box 20 - Other information, mark the Suppress K1 supplemental detail of distributions in excess of basis field in Screen Basis.
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