Reporting partner liabilities
UltraTax CS reports a partner's liabilities in 2 places: Schedule K-1 and the Partner's Basis Worksheet.
- Schedule K-1:UltraTax CS sums the at-risk and not at-risk liabilities for each nonrecourse, qualified nonrecourse, and recourse liability for Schedule K-1, item K. If any not at-risk liabilities exist, a statement showing the breakdown of all liabilities will print for each partner on Schedule K-1, box 20, code AH - Other information. Use theInclude at risk / not at risk liability detail on Schke K-1, box 20, Other informationfield in the K1Misc screen in the Partner Info, Basis folder to modify the print condition of this statement.
- Partner's Basis Worksheet:UltraTax CS uses the difference between the total of all liabilities on the prior-year's and current-year's Schedule K-1, item K to determine the net increase or decrease for the basis worksheet. The prior-year value of a new or converted client can't be determined; therefore, the partner's share of liabilities increase (decrease) may be incorrect. Use theShare of partnership liabilities (Force)fields in the Basis screen in the Partner Info, Basis folder to force a different amount for prior-year and current-year nonrecourse, qualified nonrecourse, and recourse liabilities.
