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Level 1
posted Feb 18, 2022 11:53:29 AM

Reallocation of losses in final Partnership return

This partnership was set up as two equal partners, but there's a provision in the document that specifies that, upon termination, if the partnership has a loss, just one partner will absorb the loss and pay down the loan.  As such, the final K1's need reflect the allocation of loss differently from how gains/losses were allocated in prior years (where they were allocated 50/50).  How is this done in Turbotax Business without having to over-ride calculated fields? 

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1 Best answer
Expert Alumni
Feb 20, 2022 9:03:03 AM

You should be able to allocate the final loss using different percentages under Partner/Member Information. Under each Partner, enter different percentages in the Loss % boxes (ex: 100% for one partner and 0% for the other). On the Allocation Method page, check the box for "Loss Percentage."

2 Replies
Expert Alumni
Feb 20, 2022 9:03:03 AM

You should be able to allocate the final loss using different percentages under Partner/Member Information. Under each Partner, enter different percentages in the Loss % boxes (ex: 100% for one partner and 0% for the other). On the Allocation Method page, check the box for "Loss Percentage."

Level 1
Feb 21, 2022 9:32:39 AM

Hi Patricia,

 

I'd tried making that modification on the forms and kept getting boxed in by error checking.  Your solution is exactly what I needed.  Thanks very much.  

 

good day,

 

Rob