Not sure how to delete the K1 without causing more problems like add a new partner and transfer ownership etc. I tried without saving it. The problem will still exist in my opinion. Here is the issue: In the step by step format under disregarded entity, when you fill in the beneficial owner, the data fills in H2. H2 is where the disregarded LLC goes. To get around this, I basically reversed everything. That still leaves the problem of L1. When you reverse things and fill in the partner as the beneficial partner and partner type as individual, disregarded entity disappears. So you have to put in disregarded entity and that messes up L1. L1 is supposed to be the beneficial owners entity type which is I assume individual and not disregarded entity. I would really like to fix this before March 15. Note: I experimented with TaxAct and it filled in the correct data except for L1. At this point I am still waiting for TurboTax to address the issue. You should also be aware that if you override you can't efile and have to get a waiver in California to print/mail.
Instructions for Form 1065 (2020) | Internal Revenue Service (irs.gov)
