@Rmahlum wrote:
My screen does not show the ownership percentage like the screen you displayed. I need to enter ownership percentages.
@Rmahlum Are you using TurboTax Business? Are you preparing a From 1065?
Click the Business Info tab and then click Partner/Member Information, and then click the Edit button to the right of each partner's name. Proceed through the screens until you arrive at the Partner Percentage screen.
Do not indicate that the partnership made special allocations unless it actually did make such allocations (see guidance below).
If, for some reason, you need to use Forms Mode, you can easily enter the percentages on the Schedule K-1 Worksheet.
Special Allocations
Items of income, gain, loss, deduction, credit, etc. are generally distributed to the partners (or members) based on their ownership percentage. However, partnerships (or LLCs) can agree to distribute items of income, gain, loss, expense, credits, etc. based on a different allocation that they choose. There must be a written agreement that authorizes it.
Example 1:
- The partnership makes profits of $50,000 for the year.
- Your two partners have equal ownership percentages (50% each).
- Because Partner A does more work for the business, the partnership agreement specifies that Partner A receives 60% and Partner B receives 40% of the profits.
Example 2:
- The partnership makes retirement plan contributions of $10,000.
- Your two partners have equal ownership percentages (50% each).
- The partnership agreement specifies that Partner A is allocated $6,000 and Partner B is allocated $4,000 in retirement contributions.
