Sch K-1 shows 2000 beginning capital account, 7000 current net loss, ending capital account -5000. And in Partner's Share of Liabilities beginning recourse is 6000 and ending recourse is 6000. If I put the Partner's Share of Liabilities in Lacerte, 6000 beginning 6000 ending, the 6000 is not used as basis to allow the additional 5000 of loss. I can't figure out why not. To confuse the matter, if I show -0- as beginning recourse and 6000 as ending recourse, then THIS 6000 is used as basis to allow the 5000 additional loss. On the basis schedule it includes this 6000 as Change in Partners Liabilities.
I just can't figure out why the software won't use the 6000 as basis if listed in beginning and ending liabilities. I don't care if the recourse debt has been sitting there for ten years. It is still this partner's debt and it should be used as basis.
I must be missing something. Any guidance appreciated.