PTPS

[susan500]

I have only one client with a PTP. I know that the ordinary losses are suspended until there is income to offset. I do report the dividends and interest. But what about all of the other items? For instance, Net Section 1231 gain and intangible drilling costs. These items are passing through to the 1040 (the gain net of amortization for the drilling costs) but should they? And if not how do I properly code this on ATX?

Thanks,

Susan Pulaski

[michaelmars]

my theory is enter it as per atx input screen, code it as a ptp and let the program do its thing, if you [or i] can't figure it out, then those working for the irs can't either. and usually the amounts are very small anyway.

[JRS]

After going through the confusion you are having a few years ago, I took the same route as michaelmars and just let the program do its thing. I had a Schedule D only(?) audit a couple of years ago and the agent skipped right on past the PTP even though I had screwed up and taken a partial loss that I should have carried over! That was the only thing I was worried about and my client knew it. From then on I let ATX do the work.