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Capital - Special Allocations Federal and State

Level 1

Hello everyone,

Question: I have a Partnership that has made Capital Distributions to the partners. These are arbitrary amounts, not based on the Capital Ownership %, so I have to do Special Allocations, Screen 29

I noticed that these entries, do not reflect on the State K-1. Neither does the Special Allocation of the Capital Beginning Balance. Looks like I have to do the same work again, now on Screen 39

It doesn't look right to me to do the same work twice.

Is there a way to avoid this?

Thank you!

Labels (1)
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3 Replies 3
Level 9
Level 9

Nope. You have to do the same work twice.

"Forgot to do the state allocation" is one of the most common errors in my multistate partnership returns.

Level 15
Alternate solution is have your client take the k-1 back to the general partner and insist that the return be corrected to show the proper amounts.

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Level 9
Level 9

OP is the preparer of the partnership return.