Can't add new member in Turbo tax Business 2023

[frank421]

I am using Turbotax Business 2023. We added a new member to the LLC last year, and when I am trying to add them the two boxes "This is member's first year as a member" and "The member left the company this year" automatically are checked and I cannot uncheck them

[PatriciaV]

We have tested this situation in an LLC 1065 return but are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2023" file to test further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. 

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number and tag (@) the Expert requesting the token from you. Please include any States that are part of your return. 

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@frank421

[frank421]

Token Number 1183562

@PatriciaV 

[PatriciaV · Accepted solution]

We have confirmed the issue you see in your partnership return and are looking into a possible fix.

In the meantime, here is a work-around that will give you the result you need without causing any form errors.

1. Delete the new partner you entered.
2. Go back to About Your Business and change your answer about a change in ownership to No. Confirm the removal of the Additional K-1 Info form.
3. Go to Forms and open Sch K-1 Wks. This form has an internal scroll bar to move between partners.
4. Scroll down below Partner Two and enter the information for your new partner. Any field in red needs to be completed. Be sure to check the box for "Initial" to indicate this is the first K-1 for this partner.
5. For existing partners, check the box for sale or exchange under the ownership percentage to explain why it changed from the beginning percentage.
6. If you want to use Weighted Average Percentages to allocate income and expenses, you'll need to create a new K-1 Info sheet. Click on Open Form above the list of forms and type in "Additional" then click on "Additional Special Allocation Report" under Schedule K-1 Worksheet and Open Form. Check the box for Weighted Average on the left side of the form.

You will need to adjust the ending ownership/profit/loss percentages for all partners so that the totals at the bottom of the Sch K-1 Wks are all 100%. If you see a form with a red exclamation mark or a field in red, click the Errors icon above the forms list to open a footer that describes all errors for that form.

Note that checking the box for change of ownership serves to create the Allocation Worksheet and nothing more. You do not need to report a change in ownership on the return, other than the check boxes on each K-1.

For any box on a form, you can right-click on the box and choose About to obtain more information on what to enter. Any box highlighted in yellow will accept direct input. Green numbers were carried over from last year; blue numbers are direct input. Black numbers are calculated and cannot be changed.

More help:

• How do I manually fill out my tax forms in TurboTax Desktop? 
• What's the meaning of all the different colors in Forms Mode?

[DMarkM1]

Yes.  After answering "Yes" to the change in ownership question. The new partner has zero ownership at the beginning of the year so the 1st year box is checked.  The new partner also has zero end of year ownership (so last year box is checked) until you get to the interview area to add/change the ownership percentages as of the date the new partner is added.  Once you give the new partner a percentage of ownership the last year checkbox goes away.  

The forms mode procedure outlined by @PatriciaV accomplishes the same task.  This is a weighted allocation experience and seems to be working as advertised.

@frank421       

[frank421]

The problem was that the program did not provide an interview area to add/change the ownership percentages as of the date the new partner is added