I loaned my (3 member) LLC money, how do I code the 1065, and Schedule K Reconciliation Worksheet?

Forum|Forum|4 years ago
January 17, 2022
2 replies
27 views

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

TurboTax Business Windows

Critter-3

Level 15

YOU loaned the money so only YOU get full credit added to your basis.

Rick19744

Level 13

I agree with @Critter-3.

You need to code this as recourse debt allocated specifically to you (100%).

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

TellerikAuthor

Level 2

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

TellerikAuthor

Level 2

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.