This error occurs when a loss is reported from partnership distributions (either PP or Non-PP) at item 13, but no corresponding business activities have been recorded at item P9 under Business and professional items.
All business losses must be reported at item P9 under Business loss activity details.
Any business losses that cannot be offset against other income for the current year should be deferred and recorded at item 16 (Deferred non-commercial business losses). Please update the worksheet accordingly.
If you are unable to make these updates, the link between the partnership and/or trust distributions will need to be removed.
Follow the steps below:
Go to the client and select View Jobs.
Open the Tax tab and untick both options under the Tax Status section:
Allow Distributions from Trust or Partnership
Transfer Shared Jobs to this return
Reopen the return.
Re-enter any required details in Income item 13.
šNote: Elite Tax will use the information entered at item 16 to complete item P9.