After change of ownership. how to enter total income was calculated through the year for the old ownership k-1s? since the new ownership did not make any profit till the end of the tax year

[TaxPrep1]

In 2021 Jan-Nov ownership was 50% for each (Partner 1 and Partner 2) total income calculated was 200K, in Dec 1st 2021, partner 2 sold 50% of his shares to a new partner so by the end of the year the ownership was (partner 1 (50%) + partner 2 (25%) + partner 3 (25%))

After entering the data in change of ownership smart worksheet and and the period of ownership in ProSeries, the profit in k-1s (partner 1 (100K) + partner 2 (50K) + partner 3 (50K))

In fact partner 3, after changing the ownership made Zero income since the 200K was made in Jan-Nov that year. and he does not need to pay income tax.

I override box 1 in each k-1 to (partner 1 (100K) + partner 2 (100K) + partner 3 (0K)) but it's showing me in read, is that the right way to do it?, or is there any other way to do the entry?

[shf1957]

I had an issue somewhat like this...and what I had to do is alter all the figures.   for example partner 1 would get the 50% of all income and expenses. Partner 2 would get the 50% of the first 11 months and then 25% of the 12th month 0, and Parner 3 would state 25% of 0      as I stated I had to alter the figures and it was efiled and accepted.   So over ride the answers after you put in the percentages.   As long as the total of all 3 k1's equal the total of all income and expenses it is fine.

[TaxPrep1]

thank you for the answer

I was thinking of doing override, but it will always turn to red, so I was confused about if it will get accepted.

[shf1957 · Accepted solution]

Yes it will get accepted.  It will get accepted as long as all the k1's added up equals the totals on the 1065 ( on the main form ).  I have done this for years with a couple of partnerships due to some having different guaranteed payments etc,,,   Just double check that they do equal up  🙂  Have a great day and glad this could help.