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 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.