On Form 1065, US Return of Partnership Income, all distributions to Schedule K-1 are based on the partner's percentage. If the amounts on the K-1 need to be different from the calculated percentage amounts, the special allocations must be used.
Using special allocations
- Make entries for the total amounts in the appropriate Input Return screen. For example, enter Guaranteed Payments in the Ordinary Income > Deductions screen.
- Select the Special Allocations tab from the top menu.
- Choose the input to specially allocate from the left column under Amounts to Allocate.
- Enter the amounts or percentages to allocate.
Additional information
- Amounts must be entered in the input screens before allocating from the special allocation input screen. If you make entries here first, ProConnect Tax won't carry those amounts back to Form 1065.
- Allocate the full amounts. Any remainder will flow to the rounding partner's K-1.
Related topics
Entering and Specially Allocating Capital Accounts for a 1065 return
Entering and allocating partners' guaranteed payments in ProConnect Tax
Entering Section 754, 743(b), and other specially allocated depreciation in ProConnect Tax
How to enter and allocate partner health insurance in ProConnect
