K-1 Transfer

Facts

Use the following information to restore two clients from the DEMODATA directory. Use the K-1 Transfer to bridge information from the Partnership return to the Individual return. Print the information that is being transferred.

Program Considerations

All Programs:

• The program allows an unlimited number of K-1 entities.
• All K-1's are considered passive without active participation unless entries are made indicating otherwise.
• The taxpayer and spouse social security numbers are used to match K-1's to returns in the Individual program.
• Lacerte checks to see if an employer identification number is present in an existing K-1 entry in the Individual return. If the number is present, the program imports the information into the already existing K-1. If the number is not present, the program adds the K-1.
• If you make changes in the business return after you have exported the K-1 information, the program prompts you to export the information again.
  

Individual Program:

• The Passthrough K-1 screen uses prefix numbers to differentiate one activity from another. Prefix numbers are assigned for each activity entered in Screen 20.1, Partnership Information and are viewed in the list.
• The numbers in parentheses following the descriptions in the Passthrough K-1 screen relate to the corresponding line numbers on a standard Schedule K-1.
• You can enter information from four different Passthrough entities: Partnership, S-Corporation, Estate or Trust, and REMIC. Input for each of these entities is designed to match each entity's particular K-1's.
• The Schedule K-1 Import Data window shows both prior and new amounts for each item that you are importing.

Partnership Program:

• You can export K-1 information from either the Detail or Clients tabs.
• You can use the Number of K-1 Activity in 1040 field in Screen 32, Schedule K-1 Miscellaneous Information to override the prefix assignment that the program will attempt based on employer identification numbers for existing K-1's.

S Corporation Program:

• You can export K-1 information from either the Detail or Clients tabs.
• You can use the Number of K-1 Activity in 1040 field in Screen 36, Schedule K-1 Miscellaneous Information to override the prefix assignment that the program will attempt based on employer identification numbers for existing K-1's.

Fiduciary Program:

• You can export K-1 information from either the Detail or Clients tabs.
• You can use the Number of K-1 Activity in 1040 field in Screen 43, Schedule K-1 Overrides/Miscellaneous Information to override the prefix assignment that the program will attempt based on employer identification numbers for existing K-1's.

How?

To export K-1information:

1. Open the Partnership program.
2. Open client 04SAMPLE.
3. Open Screen 32, Schedule K-1 Miscellaneous Information.
4. Select Partner In a Partnership in the Partner list. (The first partner in the list is already highlighted).
   
5. Check the Export partner K-1 data to 1040 box.
   

   Note: This box is already checked in this sample return.

6. On the Tools menu, select K-1 Export to 1040. This can be done from the Clients or Detail tabs.
   
7. Click Export.
   
8. Click OK.

To import (and print) K-1 information:

1. Open the Individual program.
2. Open client 13SAMPLE.

   A Schedule K-1 Data Import window is displayed.

   
3. Review information in the Schedule K-1 Data Import window.
4. Click Print.
5. Click Accept Data.

   Note: If you do not want to transfer this data you can permanently delete the import information by clicking the Delete Activity button. If you do not want to transfer the data immediately but intend to transfer it later, uncheck the activity in the Activities list. You can transfer the data at a later time by selecting K-1 Data Import on the Tools menu.

6. Click OK.

Tips & Shortcuts

Click the Diagnostics tab in the Schedule K-1 Data Import window to view information that does not transfer due to its discretionary nature.

Review

You should have been able to transfer the K-1 information from the spouse's Partnership return to her Individual return and see the following information in Screen 20.1, Partnership Information:

Troubleshooting

Problem: When I try to export the information from the partnership I get a message telling me that I need to get REP.

Solution: If Remote Entry Processing is required to process Partnership returns at your firm, you will need to gain REP access. Since the Federal ID Number for this partnership is 99-9999999, you can obtain REP access at no charge.

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