Entering Recourse and Nonrecourse loans in the Partnership return in ProConnect Tax

Follow these steps to enter recourse and nonrecourse loans for Schedule K-1, Item K:

1. Go to the Input Return tab.
2. On the left-side menu, select Partner Information.
3. Click on Partner Information.
4. Scroll down to the Miscellaneous Info section.
5. Check the box General Partner / LLC Manager?
   • Note: If this box is not checked, and the partner percentages for loss sharing at the end of the year have not been entered, the amount entered in the Share of Liabilities screen will not generate on the partner's K-1.
6. On the left-side menu, select Partner Percentages.
7. Enter each partner's percentage of Loss Sharing at the beginning and end of the year.
8. On the left-side menu, select Balance Sheet, M-1, M-2.
9. Click on Share of Liabilities.
10. Enter the beginning and ending amounts of Nonrecourse, Qualified nonrecourse financing, and Recourse financing.
    • Note: Enter the totals for all partners in each field here. The program will allocate the loan amounts to each partner's Schedule K-1 based on the percentages entered in step 7.

Related topics

• How to specially allocate capital accounts
• How to enter a change in ownership on Form 1065
• How to generate or suppress the balance sheet, M-1, and M-2 on Form 1065