I have a partnership where ownership is 50/50 split. However, they "eat what they kill" so the profit is based on what they bring in. To complicate matters a bit more, SOME of the expenses are split 50/50 because they are used by the entire firm. Other expenses are reimbursed by the partnership at the full amount (almost like a draw to the partner that should then be taken on K1 as expense not in partnership??)
I am confused on how to allocate everything within ProSeries, if this can even be done. Any advice on this would be helpful.
In the K-1 worksheet there is a section for ownership %, sharing of profits % and sharing of loss %. The ownership in your situation doesn't change, but the other two do.
If due to the math of your details below that won't work, then there is another Section on the K-1 worksheet for Special Allocations, by $ or by %. You may end up having to do an Excel worksheet to get to the bottom line for each owner and input it into the Special Allocation Section. Note, if you do this then on the Schedule K worksheet you have to add the Special Allocation code (A-D or 1-4) so the program knows where to get the override.
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