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In a partnership, how to show final k-1 partner's ownership % as zero

AnotherTaxGuy
Level 2

Final partnership return, all K-1s final.

Trying to show partners ending share of profit, loss, and capital on the K-1s as zero. I can find no way to show it as zero. In the partner percent input section, if I enter ending ownership for each partner as zero, I get a diagnostic than my ending ownership doesn't equal 100%.

Is there a correct way to prepare this in Lacerte?

Thank you

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6 Comments 6
George4Tacks
Level 15

Welcome to Lacerte where zero as a 0 is totally ignored. It is the same as a blank. If you want a zero enter a negative one (-1) and you get a zero, sometimes shown as zero and sometimes shown as blank. 

Ideally you show distributions, debt reduction, etc  such that your balance ends as zero and the k-1s should follow along. 

https://proconnect.intuit.com/community/form-1065/help/partnership-capital-account-analysis-and-sche...

https://proconnect.intuit.com/community/partnership/help/form-1065-partners-capital-account-shows-en...

 


Answers are easy. Questions are hard!
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AnotherTaxGuy
Level 2

Hey George4Tacks

 

What you mention isn't quite the issue I have. I've zeroed out the capital account balances & balance sheet, no issues there.

 

What I am trying to adjust is the ending ownership % shown on each owners K1. Where is says:

 

Partners share of profit, loss, and capital

 

Beginning of year / End of year

50% / 50%

50% / 50%

50% / 50%

 

I want the ending to show zero %, because the partnership was closed.

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sjrcpa
Level 15

I think the instructions say to show the % immediately before the termination.


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AnotherTaxGuy
Level 2

Interesting. I did find this in the instructions:

"If a partner's interest commences after the beginning of the partnership's tax year, enter in the Beginning column the percentages that existed for the partner immediately after admission. If a partner's interest terminates before the end of the partnership's tax year, enter in the Ending column the percentages that existed immediately before termination."

 

Maybe its just always been habit, but I've always shown ownership as zero for a final partnership / K-1. The software I used before Lacerte easily let us show it this way. I even went back and looked at a bunch of final PTP K-1s I have on file, and they all show zero ending ownership.

I am not going to go crazy trying to adjust this.

srjcpa, I appreciate you leading me to the instructions.

sjrcpa
Level 15

You're welcome.


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Rmagee
Level 1

Thanks this is helpful.