Proseries LLC Partnership Guidance

Forum|Forum|3 years ago
March 20, 2023
2 replies
26 views

Is there any expert in LLC Partnerships that offer some guidance for help?

I have been frustrated for days with several Proseries people on the line, and they cannot help. Is there any expert in LLC filing as partners (2 individuals) so can help me set the income and distributions accordingly? I am in California. I can pay for the time.

A bit of context: Their ownership is 50/50, but they allocated their income and distributions differently, depending of who was the lead, which throws off the K-1's. I thought it would be simple and solved on a call with Intuit, but no one has been able to help. I have the Proseries Professional version.

Thank you!

~Ro

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

With all entities there are three percentages you need to input: percentage of profit sharing, of loss sharing and of ownership. In a S corporation these three must be the same. But for a 1065 they can be different. So in the K-1 Worksheet enter the applicable percentages. You can calculate an overall profit sharing percentage based upon their operating agreement formula. And if ownership changes there is an extra worksheet for that too.

N

Norman2001

Level 6

Have you tried using the Special Allocation column? There is a help page for its use.

T

TaxSageAuthor

Level 3

Thank your replies.

I see special allocations by ratio and amount on Sch K-1, but is this for their share of revenue or for distributions.

My clients' business is set to be 50/50, $1,400 initial contribution each.

However, the 2022 income revenue (would this be Self-employment income?) for A is 38%, and for B is 62% of EARNED income. This depended on who took the lead in each project.

The 2022 distribution for A is 27% and 73% for B.

Plus, there is $5k of a grant and $300 of an account opening bonus that I reported as "interest" as I do with individual accounts.

Just when I thought that I have set everything well in the software, I get 50/50 on their K-1s. I must doing something or a few things wrong.

I would appreciate any help and I am willing to pay for the consult if you know how to navigate Proseries for 1065 LLCs filing as partners.

Thank you!

Ro

taxiowa

Level 8

Use the net self employment worksheet which is of course not included with return. You can get there by double click on line 14a of Sch K. I assume you already know how to st allocate on K-1 worksheet by ratio and have a number assigned to your chosen ration (lets say 2).

On SE worksheet, use the space on 1b to enter negative amount to completely zero out any program numbers from flowing to worksheet. Then on Line 4d enter the total amount of se earnings that is supposed to be on return. This is most likely the amount you entered as negative on line 1b. But on this line you can enter an allocation code (2?) that you assigned in K-1 worksheet.

Hope this helps and that will be $200.

Sign up

Login with SSO

Let's get you signed in

Login with SSO