On K-1 for Profit, Loss, or Ownership % - We are married, contributed capital, own, share profit all 50/50. Which is correct method to use?

[michellenesbitt]

In the Partner/Member Information entry panel only one option can be selected, Profit, Loss OR ownership percentage, but then on the K-1 itself in J. a breakdown for each of us as beginning and ending of 50% each-Profit, Loss, Ownership, which looks correct-we want 50% each for all. 

[info12]

Are you an LLC? My husband and I are also a Domestic Partnership LLC and share 50/50. I have been doing this for a number of years and in the partnership/member information entry panel, all you need to do is to indicate that you each receive 50%. I wouldn't worry about what ends up on the K-1 form. That form becomes automatic once you enter the partnership information. I'm not an expert, but I have had expertsl look at my form and they agree.

[michellenesbitt]

Yes, we are Domestic LLC. In Step by Step 'How do you want to allocate?' there is no choice for how much %, only Profit, Loss, Ownership method option. We have a profit to split 50/50, and that shows up in K-1 J., but should we choose the Ownership method? We do not have any varied or special contributions to consider.

[info12]

When you get to the Enter Member Ownship Percentage, put in 50%. I believe only if your ownership has changed do you need to fill out the profit, loss, ownership boxes. I fill them out all the same.