Need help with Drake software

[cathe]

I have an LLC Partnership that changed to a Sole Proprietor when one partner bowed out. I know that I have to roll over the assets that were being depreciated from the LLC to the SP at their remaining basis. That part I have done. I also understand that I need to recapture the 179 deductions and adjust the basis in them before rolling them to the SP. Here is where I have the problem. The software is not generating anything in part II of the 4797 and instead is giving me a note stating that partnerships and S Corps do not report this on 4797, but instead report all the details on the K-1's. Not getting that....Help!

Cathe

[erchess]

Two Things

First, I misread your original post in the other thread. I thought the partner died and I even jumped to the assumption that his will left the business to his partner. Better talk to Veritas in the earlier thread about why the departing partner left and how. I think he was entitled to be bought out. I think there was some IRS and State Secretary of State paperwork necessary, for instance the partnership year may have terminated when the partner left and a tax return was due on the fifteenth day of the third month thereafter. Better check on that with someone who knows more about LLCs than I do.

As for your software, I wonder if you have ticked or failed to untick a box that is telling the computer that the LLC elects to be taxed as an S-Corp.. I am sure a Drake user will post here to provide more help.

[cathe]

Oof-da!

Everything has been done that the state wants. I am filling out a 1065, not an 1120S. The buy-out issue has already been dealt with. Might have missed the filing deadline, I'll check on that. Still don't get where this would go on a K-1.


Cathe

[Fuzzy Faced Leader]

Why don't you ask this question on the Drake forum? There is someone at Drake that monitors the forum, and can help you.