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04/19/2013 at 09:23AM PDT
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04/03/12 11:45am PDT
Viewed by asker 04/12/12 9:22am PDT

Partnerhip contribution input for appreciated, indebted property

Lacerte

Partnership - When a partner contributes appreciated property subject to indebtedness that is greater than the basis of the property, where is the proper place in Lacert to input: 1. built-in gains, 2. basis of partner's interest, 3. partner's liability assumed by partnership?

I have a return where a partner contributed real estate with a basis of 150k, a market value of $350k, debt of $300k. I don't know how to input all of the necessary pieces of this transaction into Lacert.

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 1) Likely as a depreciable asset, since you need to preferentially allocate book depreciation to maintain the 704(b) book basis capital accounts. Whether it appears on the balance sheet depends on the basis used to present the balance sheet.

2) At the bottom of the K-1 input screen in the 1040 package. Outside basis isn't tracked by the partnership.

3) On the balance sheet as a liability.

The Lacerte input is unremarkable. Figuring out what numbers you want to appear where (that is, developing your workpapers) is more complicated.

If I wanted phone calls, my phone number would be in my profile. If you have a question, post it in the applicable forum.
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