This article will assist you with entering guaranteed payments for partners on Form 1065 in Intuit ProSeries Professional.
Follow these steps to enter guaranteed payments to partners on Form 1065:
- Go to Form 1065, p1-3.
- Scroll down to page 1, line 10 - Guaranteed payments.
- Enter the total guaranteed payments made to partners in the Guaranteed Payments Smart Worksheet located above line 10.
- These figures will transfer to Form 1065, page 3, Schedule K, line 4.
- ProSeries will then apportion these payments to each partner according to the percentage selected on the Partnership Information Worksheet (profit/loss/ownership).
- If you don't want to apportion by percentage, you can use special allocation by going to Form 1065 p4-5, locating the Schedule K section, and entering the following letters in the Special Allocation code column:
- Guaranteed payments for services: T
- Medical insurance premiums paid: U
- Guaranteed payments for use of capital: V
- From the left of the screen, select Sch K-1 Wks under Common Forms.
- This will open the Schedule K-1 Worksheet.
- On lines T, U, and V, you can enter the dollar amount you want to allocate to each partner.
- From the left of the screen, select Sch K Reconcile under K&K1 Info.
- Review the Schedule K Reconciliation Worksheet to check your figures.