Form 1065 Schedule K reconciliation - Recourse & non-recourse liabilities

[Angie2]

On Sch K reconciliation, TT flagged K-1 liabilities between partners must match up to total amount shown on Sch K. The only way I can resolve it is by classifying the liabilities as Nonrecourse on the "Partners' Liabilities Smart Worksheet" on pg5 of Form 1065.  But that would be wrong, as the liabilities are recourse. But I cannot seem to find a way to solve this.

In previous years (but not in 2018), the only way I managed to solve this was by going to Sch K-1 worksheet, under special allocations and split that liabilities among the members, in the #2 - B box (using the same % as the profit/loss % throughout). Then Sch K would reconciled. But now, even this doesn't work. Any suggestions? Thanks.

[Angie2]

Thank you.  I did find another post that helped answer this question.

https://ttlc.intuit.com/community/business-taxes/discussion/can-you-help-me-with-an-error-on-the-sch...

Long story short, I found the little box on Form 1065 p5 under Partners' Liabilities Smart Worksheet, next to the Ending number, and there I would need to mark it 1,2,3,4 or A, B, C, D to match up to what is entered on Sch K-1 Wks for each partner.

[kwanfam1]

Angie2,  I have the same problem and others with TT Business, but I can't get the Sch K reconciliation to populate with the correct liability for each Partner and I can figure how to transfer the amount on p5 of the 1065 liabilities smart worksheet for each partner to Sch K-1 Part II item K  and the Sch K item K reconciliation .   Any idea how that transfer or forced entry is made.

On p5 of the 1065 liabilities smart worksheet, I entered B1 in the first box and then the correct nonrecourse liability amount for partner 1, and repeated the same for the other two partners.  TIA 

[kwanfam1]

Sorry, typed too fast.  In the second sentence I meant

I  CAN'T figure how to transfer the amount on p5 of the 1065 liabilities smart worksheet for each partner to Sch K-1 Part II item K  and the Sch K item K reconciliation .   Any idea how that transfer or forced entry is made?

[kwanfam1]

After fiddling around with the program, this is the solution which is not made clear except through a right click of the box in the liability smart worksheet.  You need to add in the box before the amount of the liability in my case nonrecourse the letter "P" to have it divided by the percentage of profits for the partners.  This then populates the SCH K-1 and K-1 reconciliation.  

It is so stupid that the step by step does not have a module to incorporate the liabilities smart worksheet, how are users ever able to figure this out is too much.  

[steph508]

wow that actually worked but we have recourse debt (credit card) so do you still use a p?

[ambfrb]

I want to thank you for telling me how to get the recourse end of year to display. I spent 2 hours trying to do it.  

There is no reason why it should have been so difficult and yet have such an easy way to do it.  There is no instruction that tells you how to do it.  Why is it not on the individual k1 like everything else.