prkwork
Level 4

A married couple works together in an LLC in a non-community property state. The IRS requires treatment as a partnership (on Form 1065). This then generates one K-1 for each spouse, citing the same partnership (i.e., the same EIN). For an MFJ return, they ought to be entered to ProConnect separately so that they match the K-1s the IRS receives. However, the tabs that result in the input screen will both have the same partnership name, but the K-1s appropriately should be marked one as TP and one as Spouse. Moving on to the Business Use of the Home: Both work together in one dedicated workspace. This should drive one Form 8829, showing the home's square footage and the dedicated business space's square footage. However, if just one 8829 is entered, the business income of only one of the K-1s shows up in the Business Use of Home worksheet. Of course, both need to show up there, on the one worksheet. If instead two 8829 inputs are used (one for each K-1) and the same square footages are entered, the home office deduction is improperly doubled. ProConnect should allow multiple K-1s to be entered for the same business and then used for but one 8829. All other solutions are awkward.

0 Cheers