Is it possible to import multiple K1's received by a partnership and issue partners K1's using different splits for each one?

[dmitry]

Hi, we have a rather unusual LLC partnership setup. Our LLC invests in different real estate projects, however members decide individually which project they participate in and how much. At the end of the year we are getting a K1 from each investment and would like to split them according to member shares and create a single individual K1 for each member. 

For example:

- Our LLC (OurLLC) invests in 3 other projects: Project1, Project2, Project3, all send us K1

- We have two members: Member1 and Member2, we need to issue K1 to each one

- Member1 invested 10K in Project1 and 90K in Project2, Member2 invested 90K in project1, 10K in project2 and 100K in Project3.

- In total Member1 is in 100K and Member2 is 200K, so their total split within our LLC is 33%/66%

- On top of it, our LLC does have some expenses (tax preparation, LLC registration etc), this is split between members according to the total ownership (i.e 33%/66%)

i.e Member1 calculation for a specific K1 field should be

OurLLC * 0.33 + (Project1 * 0.1) + (Project2 * 0.9)

for Member2, the math is different:

OurLLC * 0.66 + (Project1 * 0.9) + (Project2 * 0.1) + Project 3

Can any Intuit offering handle such a case? All the numbers are automatically allocated by member's total LLC ownership (which is 33%/66% in the case above), we to manually override the allocations for many K1 boxes and not all the boxes can be.

[PhoebeRoberts · Accepted solution]

Lacerte handles that situation just fine, and manually inputting the allocations is how you do it. You also need to produce the by-activity schedule in Excel or similar. What specific boxes is your preparer unable to specially allocate?

[George4Tacks]

@dmitry https://accountants-community.intuit.com/articles/1861798-entering-special-allocations-in-the-partne... may be helpful if you have not done it before.

[dmitry]

@PhoebeRoberts @George4Tacks That what our accountant was doing before, I was hoping there is a better way to do it instead of overriding all numbers using our Excel as an input. Regardless, there seems to be a problem this year with Box 20 (QBI, Z, AA, AB, ....). According to him there is no way to allocate it manually. It also produces "STMT" values within the boxes and the second page of lists a table of all these activities with incorrect shares for a member. In the example above I would ideally not want Project3 to even show up for Member1 as he does not participate in it. Is any of it something that can be done?

[PhoebeRoberts]

All the QBI items are available to specially allocate.

Heck, it looks even better than that. At the top of Screen 23, enter Partner Override percentages to allocate to each partner. Note that this is something I discovered by reading the blue informational headers, not some well-concealed secret.