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Common questions about entering passthrough entity K-1 information in ProConnect Tax

by Intuit•1• Updated 2 months ago

Below are solutions to frequently asked questions about entering information on the Passthrough K-1's screens:

There aren't direct inputs specifically for distributions on the Passthrough K-1's screen in the S-Corporate or Partnership modules. You'll need to enter distributions from another passthrough entity in the input screen where you'd report distributions from the entity itself.

Follow these steps to enter distributions for the Schedule M-2:

  1. Go to Input Return ⮕ Balance Sheet, M-1, M-2 ⮕ Schedule M-2 (Capital Account).
  2. Scroll down to the Analysis of Partners' Capital Accounts (M-2) section.
  3. Scroll down to the Distributions subsection.
  4. Enter the amount in the applicable field:
    • Cash and marketable securities
    • Property

Follow these steps to enter distributions for the Schedule K / K-1:

  1. Go to Input Return ⮕ Schedule K ⮕ Other Schedule K Items.
  2. Select the Distributions tab.
  3. Enter the amount in Cash and marketable securities [Adjust].

Follow these steps to enter distributions:

  1. Go to Input Return ⮕ Shareholder Information ⮕ Distributions, Loan Repayments.
  2. Choose the appropriate Shareholder from the top tabs.
  3. Enter the Distributions (including cash) other than dividends.

When entering a multi-state K-1 in the Passthrough K-1's screen of the Individual or Fiduciary module, you always want to start with the Federal Amount column. This will make the amounts flow to the federal return and the resident state return.

  1. Enter amounts in the Federal Amount column to flow to the federal return and the taxpayer's resident state return.
    • Use the State if Different column when the taxpayer's resident state amount differs from the federal amount.
    • Use the State Source Amount column to flow to the taxpayer's nonresident or part-year resident state returns only.
  2. Select the plus sign (+) to the right of input fields to expand the input and enter specific amounts for each state (multiple states must already be added to the return for the + sign to show).
    • Alternatively, you can source amounts using the Federal Amount column.
    • Sourcing an amount to a state with the S selection in the Source column will make the amount flow only to that state. It won't affect the federal or any other state returns.

Refer to this article for instructions on importing or exporting K-1 information between returns in ProConnect Tax.

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