Proseries LLC Partnership Guidance

[Rosario - CSLP]

Is there any expert in LLC Partnerships that offer some guidance for help?

I have been frustrated for days with several Proseries people on the line, and they cannot help.  Is there any expert in LLC filing as partners (2 individuals) so can help me set the income and distributions accordingly? I am in California.  I can pay for the time.

A bit of context: Their ownership is 50/50, but they allocated their income and distributions differently, depending of who was the lead, which throws off the K-1's. I thought it would be simple and solved on a call with Intuit, but no one has been able to help.  I have the Proseries Professional version. 

Thank you!

~Ro

[dascpa]

With all entities there are three percentages you need to input:  percentage of profit sharing, of loss sharing and of ownership.  In a S corporation these three must be the same.  But for a 1065 they can be different.  So in the K-1 Worksheet enter the applicable percentages.  You can calculate an overall profit sharing percentage based upon their operating agreement formula.  And if ownership changes there is an extra worksheet for that too.

[Norman2001]

Have you tried using the Special Allocation column?  There is a help page for its use. 

[Rosario - CSLP]

Thank your replies.

I see special allocations by ratio and amount on Sch K-1, but is this for their share of revenue or for distributions.

My clients' business is set to be 50/50, $1,400 initial contribution each.

However, the 2022 income revenue (would this be Self-employment income?) for A is 38%, and for B is 62% of EARNED income. This depended on who took the lead in each project.

The 2022 distribution for A is 27% and 73% for B.  

Plus, there is $5k of a grant and $300 of an account opening bonus that I reported as "interest" as I do with individual accounts. 

Just when I thought that I have set everything well in the software, I get 50/50 on their K-1s.  I must doing something or a few things wrong.

I would appreciate any help and I am willing to pay for the consult if you know how to navigate Proseries for 1065 LLCs filing as partners.  

Thank you!

Ro

[taxiowa]

Use the net self employment worksheet which is of course not included with return.  You can get there by double click on line 14a of Sch K.  I assume you already know how to st allocate on K-1 worksheet by ratio and have a number assigned to your chosen ration (lets say 2). 

On SE worksheet, use the space on 1b to enter negative amount to completely zero out any program numbers from flowing to worksheet.  Then on Line 4d enter the total amount of se earnings that is supposed to be on return.  This is most likely the amount you entered as negative on line 1b.  But on this line you can enter an allocation code (2?) that you assigned in K-1 worksheet.  

Hope this helps and that will be $200.

[Norman2001]

If you look at page 4-5, every line has a special allocation box next to it.  Click on one of these boxes and press F1; a help screen pops up.  The help page could have been done better, but it can get you started. Be sure and click on all of the blue links on the help page. 

For example, 

On page 1-3 enter 10,000 in Box 1a (gross receipts)

On page 4--5 Sch K, line 1 has 10,000

Click on the SA box and enter the number 1

Double click on the same SA box and it takes you to the Sch K-1 worksheet for partner 1. 

Under the Special Allocations area, By Ratio, #1.  enter 27. (your %)

Go to the other partners K-1 worksheet and enter 73 (remaining %)

Review the K-1s to see if they are correct. 

For Distributions, you can directly enter the distributed amount on the partner's K-1 worksheet

Sorry, but I'm not an expert at this.