Recapturing prior year foreign losses
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Any ideas about how to recapture foreign losses (Reg Sec 1.904(f)-2(c)(2)? A K-1 from a big law firm is recommending making an election to recapture more than required.
Answer
Lacerte does not have a specific entry field for electing to recapture more foreign loss than is requred. It does, however, have a place for you to enter your own election information. Inside the Elections screen, there is a section titled "Other Election." Entering an Election Title and Election Text in the fields provided will generate a statement that will print with the return. This statement will appear under Elections in the Form list inside the Forms tab.
This entry, however, does not affect the calculation of the return. You will have to enter the loss recapture according to how you need it to appear on the return.
It is recommended you use the regulation section in the Election Title.
The Election screen numbers vary with each business module. In the Corporate module, it is screen 41. In the Partnership module, it is screen 33. In the S-corporation module, it is screen 38.
