Got a question on our Personal Form 1040 this year. It concerns one aspect of how Turbo Tax is treating my Schedule K-1 from an LLC that I was a member of in 2024 but the LLC closed out that year. Said LLC held a Loan Note only and that's all. No assets, interests or equipment to sell or liquidate.
Here is how I filled out the T.Tax Questionnaire in step by step topic.
Describe the Partnership: I checked [x] This Partnership Ended in 2024
How you disposed of this partnership: I checked [x] No Entry <-(the LLC never had no assets or interest)
What type of activity was/is this partnership: I checked [x] Other
Look over K-1 and check boxes that have amts in them: I checked [x] Boxes 4 to 7, [x] Box 14, [x] Box 20
Fill in amts from boxes that apply to your K-1 situation: I filled in [0] in all Boxes EXCEPT Box 20, I put $488
Enter Box 14 Info: I picked-> A-Net Earnings (Loss) Self Employment with the amt of (-104)
Enter Box 20 Info: I picked-> A-Investment Income with the amt of (488)
Check any that apply to your investment in this LLC: I left ALL of them Unchecked since None applied.
When asked if LLC agreement require me to pay expenses out my pocket: I clicked NO
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So I finish the rest of the Step by Step questions on our Personal 1040 and run the Review and Error check and everything looks good.
But feeling a bit unsure about the vague content of the LLC questions I went to View Forms and looked at listed K-1 Partner (Our LLC) at Section Labeled FINAL/AMENDED
It shows the below:
[ ] Final K-1
[x] Partnership was discontinued during 2024
[ ] Partner sold or otherwise disposed of entire interest in 2024
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So I wonder why the Final K-1 was not checked? This is the Final K-1 from the LLC?
So then while on the Form I check [x] Final K-1.
I Save the Return and then run Review and Error check again and this time it baulks wanting me to go fill in several other worksheet lines about when and what were disposed from the LLC.
Well these simply just do not apply so I go back to View Forms and Uncheck the [ ] Final K-1
I then run the Error check again and it now comes out Good.
My question is why isn't the [ ] Final K-1 being checked?
This was the last year of the LLC and when I did the Form 1065 last week in T.Tax Business I answered Yes when asked if the was the Final K-1.
