A Partnership LLC with three members (two LLCs and one S-Corp) had a commercial rental property that they were using for their offices, and in 2022, they sold the rental property and dissolved the Partnership. For the liquidation, there is only cash, there are no non-cash properties/inventory. The liquidating distributions will equal the partners' tax basis.
I am trying to understand where the liquidating distribution is entered in the TT Business 1065 forms so that the distribution is not showing on the K-1s as a taxable item for each of the partners' subsequent 1040 returns. I've read in this forum (mentioned by @Rick19744) that it should not be listed as a Distribution (K-1, Part III, Line 19), as that is an improper place to report it, but rather it should be listed on a 1099-DIV in Box 9 (Cash Liquidation Distributions). However, in TT Business 1065 forms, there doesn't seem to be a method of adding a 1099-DIV form unless the sold property is listed as an "investment". This property was characterized as Rental Real Estate. I've contacted TT explaining the situation and they said the form was not supported.
For this situation, is the 1099-DIV form just filled in manually and provided to the partners, or is there some way to generate that form in TT Business? Or is there another field in TT where this liquidating distribution should be entered (perhaps as a Special Allocation decrease in the partners' capital accounts under K-1, Line L and under Sch M-2, Line 7)?
