Spell Czech wrote:From Post #4: "I'm just looking for some authority for the position that a gain on a sale of section 179 property having zero adjusted basis is somehow non-taxable." I'm gonna guess that you've known all along that Proseries might need to participate in your search for an answer. If there is one...
I'm starting to consider it possible that the IRS failed to provide the *correct* item description for this item in the 1065's Schedule M-1. Does Proseries use the line 6a, or the line just below 6a, for the Section 179 gain?
Proseries uses the line just below 6a, and the program does describe the item as "Gain (loss) on Disposition of Section 179 Assets". The problem, of course, is that Proseries does not attach, to the K-1 for each partner, the detail that the partner will need to determine the treatment of that partner's pro-rata share of the gain, if any. We ended up preparing the return for manual filing, and we manually added the information on each K-1 attachment.
MWPXYZ wrote: [ . . . ] The software may, or may not print the schedule you need, but the taxable amount on the disposition may be different for each shareholder. So a schedule noting the original cost, dates of purchase and sale, and deduction allowed or allowable is given to each shareholder; who then on their own, must the determine the gain or recapture to report.
Which brings me back to my point: The partnership should provide that data to the partner, as an attachment to the K-1. Proseries is not doing that. The entry on Schedule M-1 does not satisfy that requirement.