I loaned ex ($3000) to the LLC (3 partner LLC) this last year. It shows up on 1065 Schedule L, line19a as $3000. Which gets transfered to the Partners' Liabilities Smart Worksheet in Line D, for $3000.
How should Form 1065 Schedule K Reconciliation sheet be coded in the K-1 K(3) Liab column? $1000 for each partner or $1500 for the other partners, and 0 for me?
Thanks
You'll need to sign in or create an account to connect with an expert.
YOU loaned the money so only YOU get full credit added to your basis.
I agree with @Critter-3.
You need to code this as recourse debt allocated specifically to you (100%).
Thanks for your feedback, however I am a little confused, how do I allocate 100% to me? On the 1065 Schedule L, Partner's Liabilities Smart Worksheet, I have the $3000 in line D "Recourse". However on the Schedule K Reconciliation form, how should I enter the values in the K-1 K(3) Liab column? Do I enter $3000 under my name or $1500 for each of the other partners? Please answer as if you are talking to a newbee, as that is what I am. 🙂
Thanks
OK, I might be getting somewhere. I created a SA - Special Allocation on the K-1 Worksheet and then entered that on the Partner's Liabilities Smart Worksheet. My question is, should the Partners' Liability be allocated 100% to me or 50% to each of the other two partners. Remember, I am the one that loaned the money to the Partnership. Thanks.
100% to you. You loaned the money. You are the member that is at-risk if the money is not paid. So, 100% recourse to you.
Thanks Rick, I don't think I really understood the term 'Recourse' at first. After reading more and your response, I get it, that it is the person that is at Risk, which would be me. So I coded the SA (Special Allocation) in TurboTax 1065 form to list me 100% for the Recourse amount. Thanks for your help.
You are welcome.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
yonghai
Level 2
darrell-teague
New Member
skipjb5555
New Member
kamikazinator
Level 2
ashughes
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.