LLC Member Loan Basis

[robertmazza]

I have a 2 member LLC and 1 member loaned the LLC money.  How can I allocate the entire loan amount to that 1 LLC member?  The program automatically splits the loan basis between the 2 LLC members.  I can't seem to find the solution on any of the worksheets.

[dkh · Accepted solution]

Use Schedule K-1 Worksheet (where you enter name and address of members) allows you do Special Allocations, enter Capital adjustments and Basis adjustments

[Accountant-Man]

To add to dkh, on Schedule K there is the total recourse and non recourse loans, and there is a block to put the letter code or number code to specially allocate back on the k1 worksheet.

[robertmazza]

Thanks for your response.  The instructions to enter the letter P for Member loans to the LLC.  This does not allocate the entire amount to a particular Member.  Instead, it allocates based on profit %.  I need to allocate the loan to only 1 Member, not all the Members.  Is there another step?

[robertmazza]

Thanks for responding.  I see the Special Allocations, but I do not see how that posts to a Member loan to the LLC.  Can you provide more specific instructions.  Thanks again.

[dkh]

Help me find where you are....  

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@robertmazza wrote:

  The instructions to enter the letter P for Member loans to the LLC. 

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I'm not familiar with entering the letter P  and then maybe I can help with the allocation

[robertmazza]

I used letter A on the K-1 worksheet and used letter A on Schedule L where the liabilities are separately analyzed as recourse or non-recourse.  I originally entered letter P (as the program instructions indicated) and that allocated the loan to both members based on their profit percentage.  Entering letter A instead of P solved my issue.  Thank you for solving my problem.  Very much appreciated.

[robertmazza]

Thank you for resolving my problem.  As I wrote to dkh, replacing the letter P with the letter A on the Schedule L liabilities worksheet and entering the letter A on the member K-1 worksheet solved my problem.  Thank you for responding to my question and providing the solution.  Much appreciated.

[dkh]

You are welcome.