How can I assign the "loans from partners" (Schedule L 19a) to specific partners and specific dollar amounts?

[business-turbo]

Hi, 
For a multi-owner business, we can add the total "loans from partners" in schedule L section 19a through the main questionnaire.
How can I then assign in TurboTax how much of that loan belongs to each owner/partner?

Below link was a similar thread, but I still couldn't find how to handle the special case to assign different dollar amounts to the different owners regardless of profit / ownership:

https://accountants.intuit.com/support/en-us/help-article/partnership/allocating-recourse-debt-nonre...

I am using the TurboTax Online Business version.

Thanks!

[PatriciaV]

Special Allocations are not supported in the online version of TurboTax Business due to the lack of access to forms. You would need to install TurboTax Business Desktop in order to specially allocate the loans from partners on Schedule L. 

Special Allocations in TurboTax Business Desktop are set up under About Your Business with instructions under Partner/Member Information.

1. First, confirm that "Makes Special Allocations" is listed as Yes under Business Info >> About Your Business.
2. Go to Partner/Member Information and click Done at the bottom of the Member Summary page.
3. Continue to the page "How to Enter Special Allocations" and click "See Demo" at the bottom.
4. Follow the first example for Special Allocation by Amount to enter the specific liability amounts on the Schedule K-1 worksheet for each partner under Special Allocations By Amount Line A. (Skip the entry for Schedule K.)
5. Go to the Partners' Liabilities Smart Worksheet under Schedule L of Form 1065 p4-5.
6. Enter the SA code and the total Liabilities on Line D Recourse (beginning and ending columns).
7. If your beginning and ending liability amounts are different, set up two SA codes in step 4, the first for beginning and the second for ending amounts. Then enter the correct SA codes on the Smart Worksheet in Step 6.
8. To confirm the allocations, review Section K on each Schedule K-1.

[business-turbo]

Hi Patricia,

Thanks a lot! I found a way to do it with the TurboTax Business Online version as well. I did below steps, which seems to be the same idea you outlined in the Desktop version, but done with the Online version:
1. In the "Forms" section from bottom left-bar, go to Form 1065 p5-6: Return of Partnership Income, section "Partners' Liabilities Smart Worksheet". There, on section D (Recourse), assign the Special Allocation (for example "A") next to the balance you want to assign to owners
2.  In the Schedule K-1 Worksheet form, for each owner, go to Special Allocations sections, and enter the loan amount per owner next to the chosen special allocation ("A" in this example)

With above flow, TurboTax was able to show no errors in the error-check phase, and the resulting Schedule K-1's of all owners reflects the correct recourse loan amounts

I hope it helps!

Thanks