Hello,
I am working on a cash basis partnership return (2 partners 50/50 that materially participated) and have a question. The partnership has a net loss of $4k prior to a section 179 deduction of $9k. I know the section 179 deduction is disallowed for the partnership and carried forward to future years due to business income limitation, and I also know I need to reduce the basis of each partner for their share of the section 179 expense this year even though it is disallowed. My question is, do I need to enter each partner's share of the section 179 deduction in box 12 of each partners K-1 this year? Since it was disallowed and carried forward at the partnership level I wasn't sure.
Thanks for any advice. It is appreciated.
I am working on a cash basis partnership return (2 partners 50/50 that materially participated) and have a question. The partnership has a net loss of $4k prior to a section 179 deduction of $9k. I know the section 179 deduction is disallowed for the partnership and carried forward to future years due to business income limitation, and I also know I need to reduce the basis of each partner for their share of the section 179 expense this year even though it is disallowed. My question is, do I need to enter each partner's share of the section 179 deduction in box 12 of each partners K-1 this year? Since it was disallowed and carried forward at the partnership level I wasn't sure.
Thanks for any advice. It is appreciated.
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