turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

We have a two-member LLC where I am responsible for 100% losses. LLC made a loss but Turbotax is allocating the losses between both the members (on K-1)

Line J is correct on both the K-1. My K-1 says 100% for loss, his K-1 says 0% for loss. Still Box 1 shows a negative number on both the K-1s.
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

We have a two-member LLC where I am responsible for 100% losses. LLC made a loss but Turbotax is allocating the losses between both the members (on K-1)


@emailofashishk wrote:
Line J is correct on both the K-1. My K-1 says 100% for loss, his K-1 says 0% for loss. Still Box 1 shows a negative number on both the K-1s.

In order to get the result you desire in TurboTax Business, you need to enter 100% as your profit percentage and 0% for his profit percentage; the default is for the percentage of losses to follow the percentage of profits.

 

The only other method of achieving your desired result would be to retain the percentages you entered but then override the figures on your K-1s.

We have a two-member LLC where I am responsible for 100% losses. LLC made a loss but Turbotax is allocating the losses between both the members (on K-1)

As noted by @tagteam you need to make sure that the percentages are correct in the partner information section.

 

In addition, I certainly hope that you have retained tax advice in your allocation methodology and you have an operating agreement that supports this allocation.

 

Unless you have what the IRS regulations call "substantial economic effect" to support your allocation, if audited, the IRS will allocate based on a partner's interest in the partnership (known as PIP).

 

This is a very complicated area and understood by few, so as noted above, you need to have good tax advice on your allocation methodology.

 

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies