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2Pups
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What should K1 Part III Item J reflect after partner transfers ownership?

We have an LLC owned by 4 people equally. Two of them sold their shares to the remaining two, effective 12/31/2024. Should Item J of Schedule K1 Part III be populated as follows?

 

For the selling S/H:

                Beginning             Ending

Profit      25%                        0%

Loss        25%                       0%

Capital   25%                       25%

 

For the buying S/H:

                Beginning             Ending

Profit      25%                        50%

Loss        25%                       50%

Capital   25%                       25%

 

Turbo Tax didn't seem to go through this. It only asked if there was an ownership change - yes/no; had a checkbox for whether the member left the company this year, whether there were more than one date of ownership change in 2024 - yes/no; and what the ownership change date was - 12/31/24.

 

Turbo Tax populated all four K1s to show 25% in all fields for all 4 members with "final" checked for the two exiting members. Is this accurate? Or should the K1s be updated as shown above or differently?

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