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I've got an LLC partnership with 3 owners. One owner was bought out by the other 2 owners. In Pro Series, Sch K-1 Wks, beginning Profit, Loss and Ownership was 33 1/3% for each owner. Ending Ownership needs to be 50% for the 2 remaining owners. When I zero out the percentages for the leaving partner I get an error saying the Intl/Fnl Profit % should be "populated with the percentage that existed immediately prior to the partner's termination." That would be 33 1/3% but if I enter that in the Intl/Fnl % box the owner's K-1 shows an ending % of 33 1/3%, and it should be 0%. I've checked the 'Sale' box and while the profits and other deduction items are not being distributed to the leaving partner's K-1, it seems misleading that the ending Profit, Loss and Ownership %'s still say 33 1/3%.
Anyone else seen this? Is it ok that the ending % still shows 33 1/3%?
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did you do the date of change stuff on the "Addl K-1 Info" worksheet?
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I get an error saying the Intl/Fnl Profit % should be "populated with the percentage that existed immediately prior to the partner's termination."
That "error" comes right out of the 1065 instructions.
The more I know the more I don’t know.
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did you do the date of change stuff on the "Addl K-1 Info" worksheet?
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Thank you! Yes, I have the date input for the weighted average computation, and everything is flowing to the K-1's correctly as far as the income and deductions, etc., even though the Ending % on the partner who left still shows 33 1/3%. Guess I expected the Ending % to be 0% since that what it was on 12/31/24.
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it's the same thing as @sjrcpa stated above about 'immediately prior to termination). The first few times I had a mid-year termination, and did all the right stuff on that "Addl k-1 Info wks" I would see the original % still showing up and freak. But I've gotten used to it now and accept the answer of those with much higher brainpower. (don't like it, but there has to be a reason in the depths of the tax code for showing it that way)