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Level 1
posted Jan 25, 2020 12:53:15 PM

K1 Block K and Block L Explanation?

I'm using Turbo Tax Business to work on my first Tax Return for a 2 member LLC I have a question about the information on the K1s.  My partner and I are 50% partners and I filled out the Tax Return accordingly to indicate cash contributions, income/expenses from rentals, resulting in a loss of -8,000 for the year.   After the K1 was generated  section K (Partner share of liabilities) and Part L (Partner's Capital Account Analysis) were blank.  

 

From my understanding I would fill-out our loan balance and loan ending in Part K   in the nonrecourse section and indicate our cash contributions in block L with this net loss below it.  Am I missing something?


If this is correct and important to fix does anybody know how I would address this in Turbo Tax Business?

 

thanks

 

 

 

0 5 1931
1 Best answer
Level 13
Jan 25, 2020 2:40:15 PM

A couple of comments:

  1. I believe the partner liabilities information is input in the partner information section of the program. 
  2. Take a look at how you answered the question on Schedule B question 4 for the 1065.  When you review this, you most likely answered this "yes".  If that is the case, Schedule K-1 section L is not required to be completed.  As a result the software defaults to leaving this blank.  If you want this area completed, then you would need to change your answer in Schedule B question 4.

5 Replies
Level 5
Jan 25, 2020 1:53:30 PM

yeah but did you complete the info for each of you in the partner info area? that's where what you are talking about gets transferred out to your k-1s.

Level 13
Jan 25, 2020 2:40:15 PM

A couple of comments:

  1. I believe the partner liabilities information is input in the partner information section of the program. 
  2. Take a look at how you answered the question on Schedule B question 4 for the 1065.  When you review this, you most likely answered this "yes".  If that is the case, Schedule K-1 section L is not required to be completed.  As a result the software defaults to leaving this blank.  If you want this area completed, then you would need to change your answer in Schedule B question 4.

Level 1
Jan 27, 2020 6:18:11 PM

Yes I did. 

Level 1
Jan 27, 2020 6:19:25 PM

Awesome thanks, I will review that section.  

New Member
Jan 28, 2020 10:58:40 AM

I've entered the Member Capital for all 4 members but it doesn't appear in Block L in the K1s.  The balance for last year is negative and there was a cash distribution.  Should it transfer to the K1?