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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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.
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?
Help me find where you are....
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
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.
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.