Hi there,
Working on a very simple 1065, I have been stuck with this K-1 allocation of other liabilities for several hours. The error comes from the following sheet:
Sch K Reconciliation Report (Lines 20a thru K-1 Item L Net Inc)
Can someone help? A return normally only takes an hour to complete has become a nightmare.
Thank you all in advance.
Helen
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I finally figured it out. It was the code I used for the Recourse Liabilities. It has to be P. Once that changed, everything was correct.
Thank you for helping out.
Are you using the K1 worksheet for the allocations? There is a section for Special Allocations by % and by $. That Special Allocation number or letter is then entered in the SA column on K1.
Thanks for your reply to my question.
I tried the Special Allocation thing. It didn't work either. They are 50 50 partners. The liabilities need to be allocated equally.
Why the software can't do it? There is no ending recourse liabilities.
Please help.
Check the Partner's Liability Smart Worksheet that's at the bottom of the Balance Sheet - maybe you need to make an adjustment liability classifications
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