I kept getting an error on FOrm 1065 p5-6.
Our Rental Company is an LLC. We report our recourse loan on line 18 of Form 1065 (p5-6). On line 20, we report the security deposit we are holding from our tenant along with the requested Ln 20 statement. IN order to remove an error, I had to reduce the amount on Line A in the box that says "partners' liability smart worksheet" to NOT include the security deposit amount which made the A and E numbers match and the error went away. This number MATCHES the Ending Balance for Line B in the "Partners' Liabilities Smart Worksheet".
My question is SHOULD Line 20 where I have the Security Deposit be included on LINE D of the smart worksheet? THIS IS A SECURITY DEPOSIT FROM THE TENANT THAT THE BUSINESS IS HOLDING.
IF that is th case, I need to add it to Line A, D and E in the smart worksheet, correct?