How do I export and import K-1 information in Lacerte?
Prior to the 2011 Lacerte Tax program, the program only exports from the Partnership (1065), S-Corporation (1120-S), and Fiduciary (1041) returns to an Individual (1040) return. Beginning with the 2011 Lacerte Tax program, you can export and import K-1 information between business returns. See Lacerte K-1 Business to Business Transfers for Tax Year 2011 and After for more information, but stay on this article for the functionality.
Before exporting the K-1:
- The return is a Calendar Year: Lacerte does not export/import K-1's from a fiscal year return.
- Lacerte does not export a grantor trust to the Individual (1040) module since a grantor trust does not produce a Schedule K-1.
- Partner / Shareholder / Beneficiary Name: Verify that the name on the K-1 matches that of the Individual return (1040) exactly. (IE: if the taxpayers name is "Bob M. Smith" than the partners name must also be "Bob M. Smith"
- Social Security Number (SSN) - Verify the SSN matches the Individual return.
- Verify the K-1 Data path setup in the options by clicking Settings, then clicking Options, click on Setup, and then click K-1 Data Path. This should be the same for within all modules.
- In general, state K-1 information will not transfer in the K-1 export to 1040. Amounts from state Schedule K-1's or passthrough summaries must be entered in the applicable screen by the user. For the Partnership module, certain line items will transfer the sourcing for California.
Note: Setting the K-1 Data Path to a network drive for all users will allow any user to either export or import the data.
Follow these steps to export a Schedule K-1 to an Individual (1040) Tax Return:
- Go to following Input Screen to mark the return for export.
- Screen 32, Schedule K-1 Miscellaneous (Partnership)
- Screen 36, Schedule K-1 Miscellaneous (S Corporation)
- Screen 43, Schedule K-1 Overrides/ Miscellaneous (Fiduciary)
- Select the Partner, Shareholder, or Beneficiary to export from the left navigation panel.
- Check the box "Export K-1 data".
- Export shareholder K-1 data (code 8).
- Export partner K-1 data (code 21).
- Export beneficiary K-1 data (default is 1040) (code 115).
- Click on the Tools dropdown menu.
- Select K-1 Data Export.
- Note: The Schedule K-1 Export window will show the partner(s), shareholder(s) or beneficiary(s) to export.
- You are able to click on the individuals listed, but this action does not unselect any individuals. To unselect an individual you must select Cancel and uncheck the box selected in step 3.
- Click Export.
- Click OK to finish the export.
- Note: If changes are made to the return after it has been exported, Lacerte will ask if you would like to re-export the data to the 1040 return.
- Go to the Individual Tax module and open the client.
- Verify the Activity Detail and Diagnostics tab from the Schedule K-1 Data Import window.
- The Activity Detail tab will show the Amounts and Descriptions of data exporting.
- The Diagnostics tab will list items that did not export. We recommend that you print this information before accepting the data.
- Click on Accept Data.
There are situations where the data may not transfer. Check the following items to verify everything is set up correctly, or to make necessary adjustments.
Data Did Not Transfer?
- The Schedule K-1 has information to export. If income or loss are not present, the K-1 will not export. There must be data to report.
- The Social Security Number (SSN) of the partner(s), shareholder(s), or beneficiary(s) match the SSN for the Taxpayer or Spouse in the individual module.
- Fiscal year data will not import/export.
- MFJ / MFS Split - If all other information has been verified and the information is still not appearing in the Individual module, check to see if the return has been split via the Split Joint Return feature in the Tools menu. If it has, Lacerte will export the K-1 information to the single/split return as opposed to the joint return. The MFS return may need to be backed up, and deleted in order to export the K-1 data to the MFJ return.
- Schedule K-1 activities already exist within Screen 20 of the Individual program, or the SSN is verified as correct and no import box appeared, enter the number of the specific K-1 into the entity's return as the activity number:
- Partnership: Screen 32, Code 22 - Number of K-1 Activity in 1040 [O]
- S- Corporation: Screen 36, Code 9 - Number of K-1 Activity in 1040 [O]
- Fiduciary: Screen 43, Code 116 - Number of K-1 Activity in 1040 [O]
- If the K-1 corresponded to the second partnership in Screen 20 of the Individual return, enter 2 in the Partnership return, Screen 32, Code 22 for the specific partner.
- If there are no other K-1's currently present in Screen 20, enter 1 in the Number of K-1 Activity in 1040 field in the appropriate business return.
- If a taxpayer and spouse each have a K-1 from the same entity, enter consecutive numbers (e.g. 1 and 2, or 2 and 3 if there is another K-1 already present in Screen 20) in the Number of K-1 Activity in 1040 field in the appropriate business return.
- Fiduciary Schedule K-1 Items That Will and Will Not Export to Individual 1040
- Partnership Schedule K-1 Items That Will and Will Not Export to the Individual 1040
- S-Corporate Schedule K-1 Items That Will and Will Not Export to Individual 1040