Is there something I am missing to do?
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Without access to your return, it's hard to tell what could be causing the problem, but if you follow the steps below you can allocate partnership income according to something other than ownership percentage (like profit percentage).
The income should now be allocated on a Profit percentage basis.
[Edited | 3/20/2020 | 12:59 pm PDT]
Without access to your return, it's hard to tell what could be causing the problem, but if you follow the steps below you can allocate partnership income according to something other than ownership percentage (like profit percentage).
The income should now be allocated on a Profit percentage basis.
[Edited | 3/20/2020 | 12:59 pm PDT]
Anyone reading this thread and wanting to do the same needs to be extremely cautious.
Allocating income or loss based on anything other than their interest in the partnership is a risky venture.
In order to do this, the allocation needs to be able to pass what the regulations call "having substantial economic effect". These regulations are extremely complex.
Should you win the audit lottery, it is doubtful that anyone preparing their own tax return would be able to support this type of an allocation. As a result, the IRS would then default to the default allocation which is known as PIP; partners interest in the partnership.
Mostly completed my taxes. Realize that i had incorrect partnership allocation. Going back into the rental income section and trying to reallocate was not possible because the reallocation is not addressed (or required) for the revision of the allocation percentage. Is there a easy way to do it?
I have similar question, and tried to follow the instructions step by step... however I cannot find the "Profit Percentages" in Turbotax. Could you please guide me through where to find the "Profit Percentages" so that I can allocate the profit share % which is different from the ownership %. Thanks!
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