basis calc for ptner show s/e hlth as a decr in basis - ptship losses and ded. Quickfinder pg b-26 says that s/e hlth not incl in basis calc. how to correct .

partner basis calcs appear incorrect.  reductions on line 10 include s/e health.

Answer

3 people found this helpful

Both are acceptable.  By default, SEHI paid for partners is treated as a guaranteed payment and that's how it is handled in Lacerte.  I don't have Quickfinder, so can't point to what it says exactly but that is an optional tax treatment.  You will find details of both in Rev. Rul. 91-26.

The input for the alternative tax treatment would be different since SEHI would then not be deductible by the partnership as an ordinary and necessary expense but considered a distribution.  If you would like to take that position, you should remove the related entries that exist and:

  1. Enter the total on Screen 28 as a cash distribution; and
  2. Enter the respective amounts distributed for SEHI to each partner under Special Allocations on Screen 29.
Was this answer helpful? Yes No
Original
AllStar

No answers have been posted

More Actions

People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: