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Can someone help me with a question about Partnership Income Form 1065, Pg 2, Schedule B?

Form 1065, page 2, Schedule B, item 2b asks about individuals owning an interest of 50% or more in the profit, loss, or capital of the partnership? I answered yes as there are 2 partners in the llc partnership, each with 50% interest, correct? It then says to attach Sched B-1. 

But, Sched B-1 instructions say this: "Schedule B-1 (Form 1065) must be filed by all partnerships that answer “Yes” to question 3a or question 3b on Schedule B of Form 1065. Attach Schedule B-1 to Form 1065."

3a or 3b??? Nothing on Sched B-1 instructions about having to fill it out because you answered yes to question 2b????

Are those outdated instructions since the form was updated from 2017 to 2018? The form on the irs website shows 9-2017 revision. We aren't using Turbo Tax for business, too expensive for this small llc. Manually filling in forms in pdf.

Here's the link: https://www.irs.gov/pub/irs-prior/f1065sb1--2017.pdf 

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1 Reply

Can someone help me with a question about Partnership Income Form 1065, Pg 2, Schedule B?

Yes, there is a change.  2017 Form 1065...look at questions and numbers on Sch B

https://www.irs.gov/pub/irs-prior/f1065--2017.pdf

Compare to 2018 Form 1065 and look at Sch B


Questions 2a and 2b on 2018 were questions 3a and 3b on 2017.  Sch B and instructions don't appear to be revised for the 2018 F1065.

Thus for 2018, Sch B-1 would pertain to questions 2a and 2b.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

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