Hi,
I think I over complicated things.
Holding company is owned by 2 partners.
Subsidiary company is owned by Holding company. Subsidiary is pass-through entity so no tax return is needed since it flows into Holding company tax return Form 1065.
I fixed my 2 errors by reclassing the holding company contribution. I then I had to fix “special allocation” to correspond to partner percentages for form 1065 p4-5, I labeled them “O” for ownership in SA column. I then had a new error for “199A Statement A”, (I had to look at Schedule K-1 worksheet since no amount carried to each partner) so I entered detail description for the line and entered the amount which was equal to the partners percentage.
Your thoughts helped me to change my thinking and fix my problems! Thank you for your help!
