LLC Member Loan Basis

Forum|Forum|5 years ago
January 16, 2021
8 replies
49 views

I have a 2 member LLC and 1 member loaned the LLC money. How can I allocate the entire loan amount to that 1 LLC member? The program automatically splits the loan basis between the 2 LLC members. I can't seem to find the solution on any of the worksheets.

ProSeries Professional

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Best answer by dkh

Use Schedule K-1 Worksheet (where you enter name and address of members) allows you do Special Allocations, enter Capital adjustments and Basis adjustments

dkhAnswer

Level 15

Use Schedule K-1 Worksheet (where you enter name and address of members) allows you do Special Allocations, enter Capital adjustments and Basis adjustments

Accountant-Man

Level 13

To add to dkh, on Schedule K there is the total recourse and non recourse loans, and there is a block to put the letter code or number code to specially allocate back on the k1 worksheet.

** I am "Elevating with Intention!"

R

robertmazzaAuthor

Level 3

Thanks for your response. The instructions to enter the letter P for Member loans to the LLC. This does not allocate the entire amount to a particular Member. Instead, it allocates based on profit %. I need to allocate the loan to only 1 Member, not all the Members. Is there another step?

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