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Level 3
posted Feb 7, 2025 8:38:19 AM

TT Business 2024_Where is "Ending Recourse" Documented?

I know in the actual forms, that Recourse is on the K-1. But...... what are the steps to getting to it in Turbo Tax Business Step-by-Step view???? I know I have seen it, but I do not remember where I found it and it is driving me insane. I've spent way too long looking for it. 

 

The search field in the right upper corner does not work in the Step-by-Step View and..... when I try to highlight the Ending Recourse cell in the K-1 Forms view and switch to Step-by-Step, it does not take me to the right place.

 

Please if anyone knows how I get to it again so I can input a number, please let me know.......

 

Thanks!

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1 Best answer
Expert Alumni
Feb 9, 2025 1:05:04 PM

Recourse Liabilities are entered under the Balance Sheet topic of Federal Taxes. You may need to overstate your ending assets in order to access this topic from the step-by-step interview. Follow the prompts until you come to the page "Any Other Liabilities?" The choices on this page allow you to enter your liabilities.

 

An easier way to enter these liabilities would be using Forms Mode. 

  1. Click the Forms icon in the header, then locate "Form 1065 p4-5" in the left column. 
  2. Click the form name to open it in the large window.
  3. Scroll down to Schedule L (Balance Sheet per Books). 
  4. Now scroll down to the Partners' Liabilities Smart Worksheet just below the Balance Sheet.
  5. The amount you entered for the loan should appear as Recourse debt.
  6. You may choose to allocate this debt by entering a code in the small box in front of the number ("P" for Profit percentage, "L" for Loss percentage, "O" for Ownership percentage). The loan will be allocated to the individual partners' capital accounts (and Schedule K-1) based on this percentage.

Note that you should edit only numbers that appear in blue. Overriding calculated numbers invalidates the return for e-filing (you will need to mail the return). This is an IRS constraint. 

 

2 Replies
Expert Alumni
Feb 9, 2025 1:05:04 PM

Recourse Liabilities are entered under the Balance Sheet topic of Federal Taxes. You may need to overstate your ending assets in order to access this topic from the step-by-step interview. Follow the prompts until you come to the page "Any Other Liabilities?" The choices on this page allow you to enter your liabilities.

 

An easier way to enter these liabilities would be using Forms Mode. 

  1. Click the Forms icon in the header, then locate "Form 1065 p4-5" in the left column. 
  2. Click the form name to open it in the large window.
  3. Scroll down to Schedule L (Balance Sheet per Books). 
  4. Now scroll down to the Partners' Liabilities Smart Worksheet just below the Balance Sheet.
  5. The amount you entered for the loan should appear as Recourse debt.
  6. You may choose to allocate this debt by entering a code in the small box in front of the number ("P" for Profit percentage, "L" for Loss percentage, "O" for Ownership percentage). The loan will be allocated to the individual partners' capital accounts (and Schedule K-1) based on this percentage.

Note that you should edit only numbers that appear in blue. Overriding calculated numbers invalidates the return for e-filing (you will need to mail the return). This is an IRS constraint. 

 

Level 3
Feb 10, 2025 11:13:28 AM

Thank you @PatriciaV . Appreciate your response to this and one or two other questions that I have posted. The info helps alot.

Good info too on the blue and black numbers. Makes complete sense that calculated fields can not be changed, but very helpful to know blue can.