DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Pioneer
Posts: 1
Registered: ‎03-07-2016

Problems/questions entering data on K-1s

I have some problems/questions for entering data on K-1s. I’m using 2016 Premium & Business v 2016.3.1 with latest updates. We’re dissolving our LLC & I’m setting up the final 1065/K-1s.

 

1. The K-1 will not accept a positive value in "Withdrawals & distribution" for the Capital Account. When going through the interview I enter a positive number & it shows up as negative on the K-1. So I thought perhaps it was expecting the opposite so I entered same amount as negative but the result is the same. “Capital contributed” & “Current year increase (decrease) work fine. Both capital accounts have negative balances & I need to zero them out with the equivalent value for a distribution. I get the same behavior if I try override the distribution value.

 

2. I’m distributing all the cash & assets to the 2 members.The distributions are not being done according to the capital or profit allocations, my partner was bought out for a fixed cash amount with all assets & the remaining cash going to me (I’m continuing the business as a single member LLC). I went through Fixed Assets & set up a disposition for each of the assets (i.e., Set Type as Sale/abandonment, entered date, selling price, & expense of disposition). How do these get assets allocated across the 2 members, e,g,, map appropriate amounts to K-1 Line 19 (Code A, B, & C) & 20 (Code L)?  Maybe I’m hoping for too much from the software but … do the distributions of all the assets have to done manually or can these be assigned from the asset list? For example. choose which assets went to whom from the fixed asset data, rather than manually entering all the assets on the K-1s? I'm hoping not to have to for re-enter 40 assets that are already sitting with their disposition data in the fixed assets list.

Tax Pro
Posts: 5,615
Registered: ‎02-23-2016

Re: Problems/questions entering data on K-1s

HI benway,

 

 

Welcome to the H&R Block community.

 

These are technical issues that you should discuss with a support agent at 1-800-HRBLOCK.  They can troubleshoot and help you figure things like this out.  Because the community boards are run entirely by volunteers we do not have access to the software and therefore have to refer to you to support for this type of issue although I would help you out further if I could.

 

 

Louis,

Senior Tax Advisor (Tampa, FL)