Line K on K-1

[mwise1]

This is the second year this has happened to me, both 2022 and 2023 Turbo Tax for Business.  I'm finished with all of my entries but then I get an error message saying "Sch K Reconciliation Report (Lines K-1 K3 Items L Net Inc): Blah Blah Blah .... in summary it says that I don't have anything in Line K for the partner share of Liabilities Beginning and Ending.  It shows me a screen, which I cannot edit, and there is no place to put the Beginning and Ending Liabilities for each partner.  Why can't Turbo Tax correct this feature?  Looks like I'll have to return the program again this year. 

[PatriciaV]

Partner Liabilities balances are entered under Business Info >> Partner/Member Information. You'll need to work through each partner separately to find the input screen.

Also, you can use Forms Mode to open Sch K-1 Wks, where you can enter this information directly for each partner. Liabilities appear in the left column. Note this form has an internal navigation bar on the right side to move between the partner records.

Additional Info: How do I switch to Forms Mode in the TurboTax for Windows software?

[mwise3]

Patricia, 

Thank you, however, that only gets me to the "Beginning Liability" numbers not the "Ending Liability" I have my liabilities under "Other Liabilities" and I thought that would report directly to the K-1 in the appropriate section but when I run my error report it still indicates there are liabilities missing on the Schedule K Reconciliation, which I can't access or input from the error screen.  Help!

[PatriciaV]

Open Form 1065 p5-6 and scroll down to the Partners' Liability Worksheet under Line 22. Here you can review, edit, or specially allocate the liabilities that appear on Line 22. Direct input is supported only for boxes shaded in yellow. If a number or box turns red, you will have an error on that form.

Other Liabilities on Line 20 are allocated to general partners based on year-end loss ratios.

@mwise3

[mwise1]

Patricia V. Thank you for the added information, however, I have values on form1065 p5-6 and Line 22 has what it is supposed to have for Liabilities.... What I'm saying is that even though there are values there for Other Liabilities it is not allocating at all to the K-1 "Partner's share of liabilities" Ending Balance.   All I need is the program to report the liability to each K-1 based on the year-end ratios.  But there isn't any place, that I know of, to manually put those values so it shows up on the K-1 and for me not to get an error. 

[PatriciaV]

Are the Other Liabilities entered on line 20 of the Balance Sheet? If so, that amount is reported to general partners only.

[mwise1]

Is there a liability line that reports to all partners, not just the General Partners?

[PatriciaV]

Recourse and NonRecourse Liabilities are allocated to all partners according to their ownership percentages. Or you can set up Special Allocations, if needed, under the Business Info section.