You will need to review and revise the information (if necessary) under Business Info >> Partner/Member Information. Work through the interview to the page "Profit Percentages" and confirm that the leaving partner has 98% Before and 0% after. The new partner should have 0% before and 98% After.
Now go to Forms Mode and open "Sch K-1 Wks." Scroll down below the first partner info and see the note "*Intl/Fnl %." This states that the final percentage should be immediately BEFORE the partner leaves the partnership.
Each partner has a page on this worksheet. The gray scrollbar on the right moves between the partner records. Partner percentages appear on the upper right corner. Confirm that the percentages are correct for each partner, especially the new partner and the one who left. The totals at the bottom of the page must be 100%
You can review the income allocations quickly by opening "Sch K Reconcile." This form has a table with partners in rows and income categories in columns. If the allocations are not what you expected, you can return to the Sch K-1 Wks and change the percentages.
This is a complex and tedious process, and you may consider upgrading to TurboTax Live, an online service that provides step-by-step guidance from a tax expert whenever you need assistance, either over the phone or by screensharing.
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