Skip to main content
April 16, 2025
Question

The K-1 worksheet is asking for initial / final profit % - shouldn't it be 0%? Why won't it allow me to put in 0%?

  • April 16, 2025
  • 1 reply
  • 0 views
No text available

    1 reply

    April 16, 2025

    No, it shouldn't be 0%.  Let's say you own 50% of a business with one other person.  You and your partner agree to split the profits and losses 50 - 50.  Your initial profit % is 50%.  Next let's say you the two of you decide since he does twice as much work as you, that you will split the profits 60 - 40, with your partner getting 60%.  Your final profit % for the year is 40%.   

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"