Where do I input the partners share of liabilities for the K-1?

[cjknox]

I need to enter the partner share of liabilities but cannot find where to input them.

[PatriciaV · Accepted solution]

You may review & edit this information in Forms Mode. (See How do I switch to Forms Mode in the TurboTax for Windows software?) 

Partners' Liabilities are allocated on Form 1065, page 5, below Schedule L "Partners' Liabilities Smart Worksheet" (see screenshot below - click to enlarge).

TurboTax allocates liabilities to all partners based on their year-end profit ratio. The program allocates all other liabilities ONLY to the general partners based on their year-end loss ratio. If you want to allocate the liabilities in a different manner, use the special allocation boxes.

NOTE: Loans from partners on line 19a, column d are treated as recourse debt on line D of the Partner's Liabilities Smart Worksheet.

CAUTION - Limited Liability Companies: Recourse liabilities, entered or calculated to the Partner's Liabilities Smart Worksheet, page 5, line D will NOT be allocated to members unless a special allocation code is entered. 

Enter a special allocation code ("P" for Profit percentage, "L" for Loss percentage, "O" for Ownership percentage, or any other ) in the column to the left of the amount.

To check the allocation calculations, see the Schedule K Reconciliation worksheet, Lines K-1 K(2) and K(3).

[Johnsro12]

What if you have lower tier liabilities?  When I input them it creates an error.  There is a location under schedule k-1 but only for beginning balances.  Thank you