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Level 2
April 13, 2022
Question

partnership k1 interim closing

  • April 13, 2022
  • 1 reply
  • 5 views

I am preparing a partnership return which a partner left the partnership during the year (default allocation method is interim closing of the books into two segments) resulting in different percentages for the surviving partners (for each segment of year) and a short year for the resigning partner.  How do I get the k1s to reflect the allocation which allocates each partner  based on two segments?  

 

Thanks

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1 reply

JRC
Level 7
April 13, 2022

You have to use the Special Allocations on the Schedule K-1 Worksheet for each partner. Use by Ratio or By amount Special KEYS you assign to each line item on the Schedule K Page 4 of Form 1065 Page 4-5.