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April 14, 2023
Question

Does form 1065, Box 20, Code U (basis adjustment) get filled in with the change in basis figure, the new depreciable asset figure, or something else?

  • April 14, 2023
  • 2 replies
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...or the new total value of land and depreciable assets?

2 replies

April 14, 2023

The basis adjustment in 20-U is a 743(b) basis adjustment.  Which means it is an adjustment to the partner who is receiving that K-1's basis in the partnership.  This usually happens if a partner leaves or passes away then the other partners have their shares of the partnership altered.  That code has nothing to do with the basis of the assets owned by the partnership.

 

@jeffwinterroth 

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April 16, 2023

Thanks, this clarified things for me.