CLIENT OWNS INTEREST IN PARTNERSHIP AS A SME, HOW TO TRANSFER K1

[ejdtaxman]

Have never encountered this problem before, so I'm not sure how to deal with it. 

Client has a SME LLC. She owns a 40% interest in a partnership. 

The return for the partnership is complete and has issued K1s. 

As a SME she would normally file a Schedule C for this business. However, it occurs to me that I need a way to import the K1 to the return. Currently I cannot import the K1 because the EIN obviously does not match the client's SSN. 

How do I go about doing this or otherwise putting this info on the return? 

[sjrcpa]

It goes on Sch E page 2; the same as if she owned her interest in her own name (i.e. the SMLLC is disregarded)

[ejdtaxman]

ok sure but that doesn't solve the issue of how do I put the K1 in the return? 

I guess I could do it manually but wouldn't I still get the error of the numbers not matching? 

[Just-Lisa-Now-]

You could enter the K-1 manually, rather than import.

[ejdtaxman]

Thanks but please read again above. 

[George4Tacks]

Abandon all hope, ye who would want to import from an EIN to a SSN.

Give up the import. Print the K-1 and manually enter the damn thing, just like the other very knowledgeable users have told you previously. 

Alternatively have the SMLLC give the SSN to the partnership. 

I, too have never seen a K-1 carry to a Schedule C. I have seen portions of a K-1 carry to SE. There truly is much to ponder here, but I fear I have not enough information to fully grasp the gravity of it. 

[TaxGuyBill]

---

@ejdtaxman wrote:

Client has a SME LLC.

She owns a 40% interest in a partnership. 

---

Maybe I'm missing the obvious, but what is the "E" mean?  Is this just a Single Member LLC that is disregarded?

If so, the K-1 should be issued in the name of the individual and the SSN, not the LLC or the EIN.  The K-1 is entered like any other K-1 on the 1040.  It has nothing to do with Schedule C.

If the K-1 is issued to the name of the LLC and/or the EIN that belongs to the LLC, the K-1 is wrong and needs to be corrected.

[sjrcpa · Accepted solution]

True. Under the new rules in effect for 2020, if the owner is a disregarded entity, you also need to show the true /beneficial owner's name and SSN on the K-1-Boxes E and H2. It still may not import to the 1040, though.

[Accountant-Man]

The 1040 doesn't match the k1 electronically. Just enter the k1 manually, like you would for a k1 issued by another preparer. 

[ejdtaxman]

yeah, single member entity.

good point I did not know that.

Not going to go back to return and correct since it's already been filed, but that explains how to deal with K1 issue on her return. Appreciate your help.