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Snowflake1
New Member

How do I get turbo tax to allocate a guaranteed payment 100% to one partner on a 1065

I am preparing a Form 1065 with 2 partners.  I entered a guranteed payment as an expense item that I want allocated 100% to one of the partners.  The software is allocating it to both based on ownership percentages.  How do I change that?

1 Best answer

Accepted Solutions
JulieCo
New Member

How do I get turbo tax to allocate a guaranteed payment 100% to one partner on a 1065

Guaranteed payments should be entered under the Compensation and Benefits section under the Deductions tab.  See sample screenshot attached.

Once on the guaranteed payment screen, enter the amount of payments and then there should be an Allocate by Amount button.  See second sample screenshot below. 

You will then be able to select to which partner to "edit" or allocate the guaranteed payment and then enter that amount.  See the third screenshot below.

You can check these entries by looking directly at the K-1 forms to be sure they are recorded correctly.

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3 Replies
JulieCo
New Member

How do I get turbo tax to allocate a guaranteed payment 100% to one partner on a 1065

Guaranteed payments should be entered under the Compensation and Benefits section under the Deductions tab.  See sample screenshot attached.

Once on the guaranteed payment screen, enter the amount of payments and then there should be an Allocate by Amount button.  See second sample screenshot below. 

You will then be able to select to which partner to "edit" or allocate the guaranteed payment and then enter that amount.  See the third screenshot below.

You can check these entries by looking directly at the K-1 forms to be sure they are recorded correctly.

MarshallConner
Returning Member

How do I get turbo tax to allocate a guaranteed payment 100% to one partner on a 1065

No screenshots visible!!

Lorri
Level 1

How do I get turbo tax to allocate a guaranteed payment 100% to one partner on a 1065

LATEST POST

 

Guaranteed payments should NOT be entered under compensation and benefits, as this would be an expense that becomes allocated based on the partner percentage share.

 

Guaranteed payments are entered under deductions > guaranteed payments.  Then at the bottom, TurboTax has a big blue button to "Allocate by Amount" which allows you to  "edit" and allocate the payment to a specific partner, or between partners, by amount.   This is different than the profit (or ownership) percentage you have identified under partner /member information. You will also need to ensure that the guaranteed payments flow through to the partner K-1s as income.  You do this by entering "A" in the special allocation column of line 4b.  I will update again.

 

 

 

 

 

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