User's Manual - Drake Software

Supplemental Income
Drake Software User’s Manual
Figure 5-29: Partner Basis fields on Basis Worksheet screen
The fields in the Partner Basis (or Stock Basis for an S corporation) and Debt Basis
sections for the current year must be completed manually.
NOTE
Data flows directly from the two K1 screens into the Current-year
losses and deductions column (shown in Figure 5-30 on page 129).
Data entry for this column begins on the first Basis Worksheet screen
and continues to the Basis Worksheet continued screen.
Calculating
Loss
Allocation
Loss allocation percentage is calculated by:
a. Taking the total losses and deductions allowed
b. Dividing them by the total losses and deductions to figure the loss allocation
percentage
c. Multiplying the loss allocation percentage by each category of loss applicable
to the return
Once these calculations are complete:
• The product flows to column (D), Allowed Losses and Deductions in Current
Year, of the Adjusted Basis Worksheet.
• The difference between the total losses and deductions and the allowed losses and
deductions flows to column (E), Disallowed Losses and Deductions in Current
Year, of the Adjusted Basis Worksheet.
NOTE
The Shareholder’s Adjusted Basis Worksheet (WK_ISBAS) and the
Partner’s Adjusted Basis Worksheet (WK_IPBAS) are generated when
the return is calculated.
Prior-Year
Unallowed
Losses
Enter prior-year unallowed losses in the Prior-year carryover losses and deductions
column, which spans the Basis Worksheet screen (see Figure 5-30 on page 129) and
Basis Worksheet continued screens. The program automatically updates prior-year
unallowed losses entered in the 2011 program.
128 Tax Year 2012