How do I change percentages for husband/wife partnership?

Forum|Forum|5 years ago
May 21, 2020
2 replies
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I have a partnership LLC with my husband in the state of Virginia with a 51%/49% split. His earnings/contributions have become minimal, so I want to change the percentages to reflect this on our taxes. I would like to do this effective January 1, 2020. What do I have to do to make it official with the IRS? And how do I make the change in Turbo Tax (I experimented with it on my 2019 taxes and couldn't figure it out.)

TurboTax Business Windows

Best answer by Anonymous_

You do not have to do anything to make it official with the IRS other than enter the appropriate percentages of ownership for each member of the LLC. However, the partnership agreement (LLC operating agreement) must specifically allow for any change.

If you are making a change during the tax year, then so indicate by changing the default "No" to "Yes" in the section of TurboTax Business depicted in the screenshot below.

own.png

If you are starting a return for a new tax year, then the program will prompt you to enter any changes after you transfer in the previous year's return.

Anonymous_Answer

Employee

If you are making a change during the tax year, then so indicate by changing the default "No" to "Yes" in the section of TurboTax Business depicted in the screenshot below.

own.png

If you are starting a return for a new tax year, then the program will prompt you to enter any changes after you transfer in the previous year's return.

ceh17Author

Thank you!

BeckyJ_94043

Hello, I have a similar issue. I have entered the new Percentage Interest for each LLC Partner in TurboTax for Business (Windows) 2022 for myself and my husband, but the program is not carrying the new percentages through to the K-1s.