A few comments on your questions:
- In general TT is a software for the masses and in general the programmers do a good job in a complicated area. Sometimes these minor details get lost in the overall picture of getting the final product correct and miss some of the minor cosmetic areas.
- In general, limited liability members are limited partners in the legal sense and most likely the brief section in the instructions are just describing the "general" rule. Instructions are also not the model of technical depth and clarity in many situations.
- Based on your facts, make sure you go into the partner / member information section of TT and check the appropriate box as to which member is a "general partner or LLC member-manager".
- Based on your facts I'm not clear as to whether you have done this or just "overridden" the Schedule K-1.
- Hopefully making this change in the partner / member information section will clear up the Analysis of net income section.
- Keep in mind that the Analysis of net income section has no impact on whether the bottom line and allocation is technically correct. As such, if the above does not resolve the issue I would not stress. Alternatively you could call TT and ask why the software is handling this section in the manner you describe. However, this time of year staffing may be limited.
- Finally, I assume you have handled this correctly, but just make sure that you have indicated within TT that this is a limited liability company filing as a partnership. This is missed sometimes as individuals just assume partnership instead of the LLC distinction.
- Finally number 2, partnership tax gets complicated very quickly. So while you may believe your structure is simple, getting to the correct result is a complicated matter.
*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.
