how to enter a lower tiers recourse debt on to a 1065

[MICHAELMARS]

LLC owns another LLC.  The lower level has debt which creates debt for the higher level partners. How do I entere this on to the K-1's?  

[dascpa]

I do it as a memo on the Schedule K, throw in the total recourse, nonrecourse and qualified nonrecourse debt and then the program will apportion it on the memo section of each K-1. That tells the preparer of the K-1 recipient how to affect debt basis.

[MICHAELMARS]

Might work but I share an office with others and both CCH and Lacerte have a place to enter it and it flows correctly to the K-1  Line k1.

[sjrcpa]

Sometimes you get what you pay for. Those 2 programs cost more and have more capabilities.

No snark intended (this time 😀).

[MICHAELMARS]

^^^^^ 

Totally agree with this.  If I didn't plan on semi retiring in 2 more seasons I would have to upgrade to a new software.  Returns are getting more and more complicated and while Pro was great for my practice, they haven't kept up with what is needed now.  When I slow down I will probably do mostly individuals and Pro is ok for this.