Help! I am preparing a final year 1065 LLC with two members. This should be easy but I don't know how to report it correctly in the Proseries software.
One residential apartment building is the only asset left in the LLC.
Member A & Member B have created individual LLCs (to be reported on their 1040 Sch E) and are taking the apartment building out of the 50/50 LLC. LLC is closing, final year.
Apartment building has an AB of $270,737 each partner basis in the property will be $135,368 and I have put this under "Property Distribution", the LLC is final date is 12/31/2019.
The Apartment building also has qualified nonrecourse debt of $250,000 as of 12/31/2019. The members have refinance this amount into their individual LLCs on 01/03/2020.
My balance sheet needs to have "0" in EOY column. For now I have put the $250,000 in proseries under the "Partner's Liabilities Smart Worksheet" and the amount is correctly reflected on the Member's K-1. However, it is showing RED under Total lines B,C, D on Proseries because it is not matching the "0" on the balance sheet.
I know there must be simple "fix" but I'm not seeing it. Your help in this would be GREATLY appreciated!!
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