Preparing a partnership return in ProConnect Tax

Down below we'll briefly go over the general flow of completing a partnership (Form 1065) return in ProConnect Tax, as well as some potential next steps.

1. Create the client in ProConnect Tax. To do so, select the Clients tab on the left side of the screen and then Add client from the upper-right. Enter the client's information and select Next. 
2. Create a new tax return for the client. To do so, from the Clients screen, select the Actions menu, then Create a new tax return. Here you can select the 1065 - Partnership return type and enter the appropriate tax year. Select Next to begin the tax return.
3. On the Profile tab, you can select the main form (Federal, Federal Form 114, and applicable states). 
   • For more info on adding states, see here.
4. Starting on the Input Return tab, add partners on Partner Information ⮕ Partner Information.
5. Add partner percentages on Partner Information ⮕ Partner Percentages.
   • For more info on this, see here.
6. Now that you’ve set up their partnership return, to begin reporting for the main form, information and amounts may be entered as follows.
   • If you need to report a change in ownership, go to Partner Information ⮕ Change in Ownership.
     • For more info on this, see here.
   • Inputs for reporting income (lines 1a-8) can be found Ordinary Income  ⮕ Income.
   • Inputs for reporting deductions (lines 9-22) can be found Ordinary Income  ⮕ Deductions.
   • If you need to perform special allocations, select Special Allocations from along the top of the workspace.
     • For more info on this, see here.
   • The final section of the main form that pertains to tax and payments is a combination of direct inputs and calculations. Here are some resources that may help:
     • Entering estimated tax payments
     • Entering additional estimated tax payments
7. As for Schedule B, go to General ⮕ Other Information (Schedule B). Some important considerations include:
   • If you need to suppress Schedules L, M-1, and M-2.
     • For more info on this, see here.
   • If you need to force Schedules L, M-1, and M-2 to generate.
     • For more info on this, see here.
8. As for Schedule K, go to the Schedule K section.
   • Amounts from the Schedule K will flow to the partner's Schedule K-1 based on their ownership % from the Partner Percentages screen.
   • If you have other deductions or income (loss) that you need to report at the Schedule K-1 level, go to Schedule K ⮕ Other Schedule K items.
     • For more info on this, see here.
9. As for Schedules L, M-1, and M-2, you may need to do the following, depending on the situation:
   • To balance your Schedule L, go to Balance Sheet, M-1, M-2 ⮕ Balance Sheet ⮕ Federal.
     • For more info on this, see here.
     • For more info on the balance sheet rounding adjustment, see here.
   • If you need to manually enter items on Schedule M-1, go to Balance Sheet, M-1, M-2 ⮕ Schedule M-1, M-3 ⮕ Schedule M-1
     • For more info on this, as well as how the Schedule M-1 is calculated, see here.
   • If you need to report an analysis of the partners' Capital Accounts, go to Balance Sheet, M-1, M-2 ⮕ Sch M-2 (Capital Account).
     • For more info on this, see here.
   • If this is the partnership’s final year, go to Balance Sheet, M-1, M-2 ⮕ Sch M-2 (Capital Account) to zero out their Capital Accounts in the Distributions subsection.
     • For more info on this, see here.
10. Depending on the situation, additional forms and schedules may need to be completed. Down below are a couple common scenarios:
    • If you need to generate Schedules K-2 and K-3, go to Other Forms ⮕ Partners' Distr. Share Items - Int'l. (Sch. K-2).
      • For more info on this, including info on who must file, see here.
    • Add state-specific inputs
11. Once you’ve completed the return and validated all required information is entered with the required forms and schedules generating, you can either e-file the return, or print it for the purpose of review or paper-filing.
12. To send the Schedule K-1 packages to their respective recipients, see here.
    • You can also print the Schedule K-1 packages manually, if you’d like. For more info on this, see here.