1065 Special Allocation of depreciation

[mrduvall]

In TurboTax Business 2019, how do you account for a special allocation of depreciation expense to a single partner.  Business has three owners that split 50/25/25, but for this specific asset's depreciation only, we need the depreciation (section 179) to flow to the 50% holding member.  We have captured in the Partnership Agreement but need assistance in correct TurboTax capture.  

[tagteam · Accepted solution]

In TurboTax Business, you need to change the default answer to the question as to whether special allocations were made from the default "No" to "Yes" (see first screenshot).

In a subsequent screen, you will be offered the opportunity to view a demo with respect to how to enter the special allocation (see second screenshot).

[mrduvall]

Much appreciated.  I am trying to do a special allocation for contribution of asset and the related Section 179 deduction.  I have indicated in Sch K-1 Wks in the Special Allocations By Amount section and have added "A" and the dollar amount.  For round numbers sake lets say vehicle purchased and fully 179 depreciated at $40K. 

Problem 1-

Somehow my  Sch K Reconciliation is showing the $40K in both the 4b- Guaranteed Pmt Capital and 4- Guaranteed Payments columns as well as in the 12- Section 179 Exp column.  I feel like it should only be reflected in the only 4b or 4 but not both.   I think it is appropriated represented in column 12.  All three columns (4b, 4, 12) in review error out to "not equal to amount shown on Schedule K".  Is lack or mis-coding of the allocation on K-1 worksheets causing the out of balance?  On 1065 pg 4 do I need Guarantee Pmt amounts in section 4?

Problem 2- 

On Analysis of Net Income, Line one shows $30K while 2b column (ii) shows $70K.  The delta being the $40K related to asset contribution or 179 depreciation.  I feel like the system is wanting me to put the $40K in 2a column (i) but the "Corporate" in column title doesn't make sense to me. How do I get the analysis to balance?

Greatly appreciate the help as I am definitely have been stuck on this for days.  

[tagteam]

I would suggest that you contact Support for this issue but, prior to doing so, read carefully through the special allocations demo in the program (although what you are seeing could be a coding issue).

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

I would further suggest that you seek professional guidance (e.g., an in-person consultation) for the 1065 return at this point. The reason being is the return is now considerably late as 1065 and 1120-S returns were due March 16th (those returns were not extended) and there are penalties for a return filed after the due date.