Question

Partnership Share of Profit, Loss, and Capital not Accurately Reflected in Generated Schedule K-1

Forum|Forum|2 years ago
February 27, 2024
2 replies
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If there is a change in membership throughout the year (e.g. adding a member), TurboTax will ask you to enter the beginning percentage and end percentage of the existing members as well as the new members. For new members, the beginning percentage would reflect their percentage at the end of the last year (i.e. 0%) and the ending balance would reflect whatever percentage they now own.

The TurboTax form allows you to enter the correct beginning and end percentage for the member. However, the resulting K-1 shows the ending percentage in both the "Beginning" and "Ending" columns, rather than the Beginning column showing as "0%". Again, the form inside of TurboTax itself shows the accurate beginning balance percentage but the K-1 Form that TurboTax generates does not.

TurboTax Business Windows

PatriciaV

Employee

You can enter the correct beginning and ending percentages in Forms Mode on Schedule K-1 Worksheet (Sch K-1 Wks). This form has an internal scroll bar on the right to move between partners.

Profit, Loss, and Ownership percentages appear on the top of the right column for each partner. Numbers in green were carried over from last year. Numbers in blue are recent/direct input.

When you have adjusted all partners, scroll to the bottom of the worksheet to confirm that beginning and ending percentages for all three items total to exactly 100.00000%. TurboTax will show an error (red font / red box) if the totals aren't correct.

Additional Information:

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G

genevabriggs

I am having same issue. Percentages are correct in the K1 worksheet but show up incorrectly on the K1. One 50% partner died (50% to 0%) and his trust became the new partner (0% to 50%). K1 shows 50% for beginning and end for both partners. Cannot get the K1 to correct. Any solution?

PatriciaV

Employee

The initial (beginning) percentage for a newly admitted partner would be the percentage immediately after admission whereas the final (ending) percentage for a terminated partner would be the percentage immediately before termination.

These percentages will be used for reporting in Item J of Schedule K-1.

Any partner with the Final K-1 box checked should enter the percentage immediately before termination, even if the partner was admitted to the partnership during the same tax year.

@genevabriggs

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