The ownership percentage is entered on each member's K-1. To issue K-1s to your partners, shareholders, or beneficiaries, you'll need TurboTax Business to prepare the business income tax return.
This is the third answer to a question I have read, and not once has the person responding to the supplicant ANSWERED THE QUESTION. You keep answering like we are idiots. The question was WHERE DO I ENTER, not do I need Business Turbotax to enter.
Please answer the original question.
Thank you,
JJ
You enter the percentage in the Partner/Member Information section located in the Business Info tab.
The screen image you showed isn't what is coming up. There is no where to input actual ownership percentages. Please advise.
a waste of time. ownership %'s are for taxpayers' use only (1040). they are not transmitted to the IRS. there are also many other input fields in TT for individuals that are not used or needed.
Except it informs the program (TurboTax Business) how to split the income, expense, et al., items on the K-1s.
For those who posted in this thread who are not using TurboTax Business, that screenshot is irrelevant.
My screen does not show the ownership percentage like the screen you displayed. I need to enter ownership percentages.
To start, you will indicate the partnership makes special allocation. Then you can enter Forms Mode and enter an "A" code on page 4 on Schedule K of Form 1065. Thereafter, you need to open the Schedule K-1 Worksheet and enter your allocations as percentages % (by ratio).
Here's how to switch to forms mode for Windows
Here's how to switch to forms mode for Mac
@Rmahlum
@Rmahlum wrote:
My screen does not show the ownership percentage like the screen you displayed. I need to enter ownership percentages.
@Rmahlum Are you using TurboTax Business? Are you preparing a From 1065?
Click the Business Info tab and then click Partner/Member Information, and then click the Edit button to the right of each partner's name. Proceed through the screens until you arrive at the Partner Percentage screen.
Do not indicate that the partnership made special allocations unless it actually did make such allocations (see guidance below).
If, for some reason, you need to use Forms Mode, you can easily enter the percentages on the Schedule K-1 Worksheet.
Special Allocations
Items of income, gain, loss, deduction, credit, etc. are generally distributed to the partners (or members) based on their ownership percentage. However, partnerships (or LLCs) can agree to distribute items of income, gain, loss, expense, credits, etc. based on a different allocation that they choose. There must be a written agreement that authorizes it.
Example 1:
- The partnership makes profits of $50,000 for the year.
- Your two partners have equal ownership percentages (50% each).
- Because Partner A does more work for the business, the partnership agreement specifies that Partner A receives 60% and Partner B receives 40% of the profits.
Example 2:
- The partnership makes retirement plan contributions of $10,000.
- Your two partners have equal ownership percentages (50% each).
- The partnership agreement specifies that Partner A is allocated $6,000 and Partner B is allocated $4,000 in retirement contributions.
The enter the percentage in the Partner/Member Information section located in the Business Info tab will not display if you enter Date of Ownership Change as 01/01/2020 . Any other date will work.
This "OPTION" is unavailable for TurboTax 2022...
IF Intuit would kindly remove the "obsolete" information from the "community" I will likely consider returning to find an answer, as opposed to reading "solutions" which CANNOT/DO NOT function for the year 2022(n+1)... this happens EVERY YEAR...
The only solution I have found:
Enter the FORMS function and directly enter the percentage for EACH PARTNER.
TurboTax/INTUIT has continually failed to impress, delight, or mildly enhance our very simple partnership tax filing efforts. NOT worth the expense, now searching for a better provider for the next year; Hoping to obtain a refund this year.
I recall this worked in 2021....
Not a solution for 2022....
An LLC may file either Form 1065 (if filing as a partnership) or Form 1120S (if filing as an S-Corp). Here are the steps for each option to review/edit shareholder/partner ownership percentages (the original question). This assumes NO change in ownership during the tax year.
Form 1065 Partnership
Form 1120S S-Corp
@Anonymous
1065 Screenshot:
1120S Screenshot: