Knowledge Base

16510: 1040 - Distributions in Excess of Basis from 1065

1040 Individual

Does Drake Tax automatically calculate the gain that results from a distribution in excess of basis from a partnership K1 reported on the 1040 return? 


A distribution reported on screen K1P, box 19 flows to the Wks K1P Detail Adj Basis, line 6. If the amount is greater than the total basis shown on line 5, the difference is reported on Form 8949 and Schedule D.

Review Form 8949, Part II. Box F is checked and the description shows as "Excess Distribution" with the name and EIN of the partnership listed:

See Publication 541 and the Tax Information for Partnerships for details. 

In prior years, the gain is not automatically computed (see note 216). Manual entries on screen D and the basis worksheet screen were required.

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