Besides checking the box that says it's the final return, how do I go through to change the ownership percentages and such? Turbotax seems to want the final percentages still to add to 100%. And where do I go to indicate that the entire capital of each partner was distributed to them?
I can tell you there's a partner section in TT Biz where you put in the distributions. You have to check final in one or more of the beginning screens and you don't "zero out" the ownership % on the forms when on the final.
Thanks. That helps, and I can go through and indicate as distributions the full amount of each partner's capital balance, but TTAX then insists that because it's the final return I must have assets to get rid of, which I don't (it's an investment partnership, so the only assets are the capital balances of each partner. No chairs, tables, etc.).
Make sure all of the K-1s are marked final as well. All of the assets owned by the business have to be removed to finalize the return. Do you have any of the following as part of the tax return?
- Cash on hand and in the bank
- Money owed you by your customers (accounts receivable), your shareholders or others (notes and loans receivable)
- Inventory on hand
- Depreciable assets such as buildings, equipment, furniture and vehicles
- Investments such as stocks, bonds and collectibles and including tax-exempt investments like state or local bonds
- Depletable assets such as mineral deposits and oil reserves
- Intangible assets like trademarks, patents and goodwill
- Current assets, including prepaid expenses such as rent, insurance, and taxes
- Other property and assets that your business owns
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Thanks!! I do have investments (stocks, funds) (shown on last year's 1065 as "other assets" on Sched L line 8), but I kind of thought I was getting rid of those via the distributions to the partners' capital accounts. I need to somehow get rid of them in the asset section as well then? If I try to do that, by adding another asset (TTAX doesn't seem to know about them, i.e., it doesn't list them in the section to dispose of assets), it wants to assign some flavor of depreciation to them, which of course doesn't apply.
OK, so I find that if I go back through the partners' capital entries and indicate that each partner's entire basis was distributed as PROPERTY rather than cash, TTAX now believes I've gotten rid of all the assets and no longer asks me to enter more distributions, so that's progress. However, now on sched K line 19 it has that entire amount of distribution on 19b (distributions of other property) rather than 19a (cash and marketable securities). Is there a way to change that other than just overriding and moving the amount off 19b and onto 19a?
So I end up showing all partners still with their respective ownership percentages, and NOT saying that any of them left the partnership, but having received distributions of their entire basis so that their ending capital accounts are all zero, and the 1065 as well as all K1s show final. Which is what I think I want. I wonder how to make sure the whole thing is correct in the eyes of the IRS? Does this all sound basically right?