Drphibes
Level 7

Client is general partner in an LLC taxed as a partnership.  His K-1 end of year basis is negative and a box 19 distribution of $22k.  The K-1 Box 20 code X is for exactly the same amount of the negative basis and titled Deficit Restoration Obligation.  After some reading I know this can allow the $22k to not be taxed but how do I reflect this situation in Lacerte?  Thanks in advance!

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