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LLC Member Loan Basis

Level 2

I have a 2 member LLC and 1 member loaned the LLC money.  How can I allocate the entire loan amount to that 1 LLC member?  The program automatically splits the loan basis between the 2 LLC members.  I can't seem to find the solution on any of the worksheets.

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Level 10

Use Schedule K-1 Worksheet (where you enter name and address of members) allows you do Special Allocations, enter Capital adjustments and Basis adjustments

View solution in original post

8 Replies 8
Level 10

Use Schedule K-1 Worksheet (where you enter name and address of members) allows you do Special Allocations, enter Capital adjustments and Basis adjustments

View solution in original post

Level 11

To add to dkh, on Schedule K there is the total recourse and non recourse loans, and there is a block to put the letter code or number code to specially allocate back on the k1 worksheet.

** I'm still a champion... of the world! Even without The Lounge.
Level 2

Thanks for your response.  The instructions to enter the letter P for Member loans to the LLC.  This does not allocate the entire amount to a particular Member.  Instead, it allocates based on profit %.  I need to allocate the loan to only 1 Member, not all the Members.  Is there another step?

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Level 10

Help me find where you are....  


@robertmazza wrote:

  The instructions to enter the letter P for Member loans to the LLC. 

 


I'm not familiar with entering the letter P  and then maybe I can help with the allocation

Level 2

Thank you for resolving my problem.  As I wrote to dkh, replacing the letter P with the letter A on the Schedule L liabilities worksheet and entering the letter A on the member K-1 worksheet solved my problem.  Thank you for responding to my question and providing the solution.  Much appreciated.

Level 2

Thanks for responding.  I see the Special Allocations, but I do not see how that posts to a Member loan to the LLC.  Can you provide more specific instructions.  Thanks again.

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Level 2

I used letter A on the K-1 worksheet and used letter A on Schedule L where the liabilities are separately analyzed as recourse or non-recourse.  I originally entered letter P (as the program instructions indicated) and that allocated the loan to both members based on their profit percentage.  Entering letter A instead of P solved my issue.  Thank you for solving my problem.  Very much appreciated.

Level 10

You are welcome.