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posted Mar 9, 2020 2:08:00 PM

form 1065 schedule k-1 item J

I have a 50/50 partnership LLC and this year rather than paying each partner 50%, one partner was paid 80% and the other 20% of the total amount paid through owner's draws. My question is on line item "J," do I enter 20% for the beginning and ending "loss" portion, but keep the "profit" and "capital" at 50% since the partner still owns half of the partnership? 

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1 Replies
Level 3
Mar 10, 2020 7:52:45 PM

That special allocation needs to be spelled out in the partnership agreement.