Form 1065 Schedule K reconciliation - Recourse & non-recourse liabilities

Forum|Forum|6 years ago
January 30, 2020
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On Sch K reconciliation, TT flagged K-1 liabilities between partners must match up to total amount shown on Sch K. The only way I can resolve it is by classifying the liabilities as Nonrecourse on the "Partners' Liabilities Smart Worksheet" on pg5 of Form 1065. But that would be wrong, as the liabilities are recourse. But I cannot seem to find a way to solve this.

In previous years (but not in 2018), the only way I managed to solve this was by going to Sch K-1 worksheet, under special allocations and split that liabilities among the members, in the #2 - B box (using the same % as the profit/loss % throughout). Then Sch K would reconciled. But now, even this doesn't work. Any suggestions? Thanks.

TurboTax Business Windows

Anonymous_

Employee

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Angie2Author

Thank you. I did find another post that helped answer this question.

https://ttlc.intuit.com/community/business-taxes/discussion/can-you-help-me-with-an-error-on-the-sch-k-reconcile-page-column-k-1-k-3-lia-other-have-checked-my-k/00/391864

Long story short, I found the little box on Form 1065 p5 under Partners' Liabilities Smart Worksheet, next to the Ending number, and there I would need to mark it 1,2,3,4 or A, B, C, D to match up to what is entered on Sch K-1 Wks for each partner.

kwanfam1

Angie2, I have the same problem and others with TT Business, but I can't get the Sch K reconciliation to populate with the correct liability for each Partner and I can figure how to transfer the amount on p5 of the 1065 liabilities smart worksheet for each partner to Sch K-1 Part II item K and the Sch K item K reconciliation . Any idea how that transfer or forced entry is made.

On p5 of the 1065 liabilities smart worksheet, I entered B1 in the first box and then the correct nonrecourse liability amount for partner 1, and repeated the same for the other two partners. TIA