How do I enter the transfer of partner capital in a 1065 return using worksheet view?

Due to a withdrawal of a partner from the partnership or a transfer of a partner's interest, the ending capital accounts for existing or new accounts might need to be adjusted.There are two methods to for transferring capital:


Method 1: Entering a Total Transfer of Capital - [Return]



If a transfer of capital is due to a new partner, see our solution on how to add a partner to a 1065 return using worksheet view.

Note: If adding a new partner, the program uses percentages as Beginning of the Year Percentages and uses entries on Transfer of Interest and Transfer of Capital to calculate changes.
  1. Go to the Partners > Transfer of Interest/Capital worksheet.
    • Select Section 3 - Transfer of Partner Capital.
    • Note: When entering the transfer of capital detail in this section, each transfer is a transaction. First enter one transferring partner and then all the receiving partners to complete the first transaction. Next, enter the second transferring partner and all receiving partners to complete that transaction. Continuing in the same method for each additional transfer of capital.
      • In the Transfer of Partner Capital grid, enter the following information for the transferring partner in the first row:
        • In Partner Number, use the lookup feature (double-click or click F4) to select the appropriate partner.
        • In Partner name, enter the name.
          • Note: The partner name will auto-populate when the partner number is selected, but can be modified if appropriate.
        • In Date of Transfer, enter the date.
        • In Is the Partner Transferring or Receiving, use the drop down to select T - Transferring Partner.
        • In Percent or Amount, enter the amount of capital being transferred.
          • Note: Enter percentages as a decimal, 50% should be entered as 0.50.
      • In the Transfer of Partner Capital grid, enter the following information for the partner receiving capital in the row following transferring partner row.
        • In Partner Number, use the lookup feature (double-click or click F4) to select the appropriate partner.
        • In Partner name, enter the name.
          • Note: The partner name will auto-populate when the partner number is selected, but can be modified if appropriate.
        • In Date of Transfer, enter the date.
        • In Is the Partner Transferring or Receiving, use the drop down to select R - Receiving Partner.
        • In If Receiving, Provide Number of Transferring, enter the partner number of the partner that is transferring the capital (same number as entered in the step above for the transferring partner).
        • In Percent or Amount, enter the percent or amount of capital being received.
  2. Calculate the return.


Method 2: Entering a Partial Transfer of Capital - [Return]



If a transfer of capital is due to a new partner, see our solution on how to add a partner to a 1065 return using worksheet view.

Note: If adding a new partner, the program uses percentages as Beginning of the Year Percentages and uses entries on Transfer of Interest and Transfer of Capital to calculate changes.
  1. Go to the Partners > Transfer of Interest/Capital worksheet.
    • Select Section 2 - Changes in Partner's Interest and Transferring Information.
      • In Line 1 - Date 1, enter date of the first transfer.
      • In Line 2 - Grid, in the first row enter the following information for the partner that is transferring capital:
      • Note: When entering the transfer of capital detail in this grid, each transfer is a transaction. First enter one transferring partner and then all the receiving partners to complete the first transaction. Next, enter the second transferring partner and all receiving partners to complete that transaction. Continuing in the same method for each additional transfer of capital.
        • In Partner Number, use the lookup feature (double-click or click F4) to select the appropriate partner.
        • In Transfer Information - *, use the drop down to select T - Transferring Partner.
        • In Transfer Information - Percent/Units, enter the amount of capital being transferred.
          • Note: Enter percentages as a decimal, 50% should be entered as 0.50.
      • In Line 2 - Grid, in the second row enter the following information for the partner receiving capital.
        • In Partner Number, use the lookup feature (double-click or click F4) to select the appropriate partner.
        • In Transfer Information - *, use the drop down to select R - Receiving Partner.
        • In Transfer Information - Partner Number, enter the partner's number of transferring partner (enter in row above).
        • In Transfer Information - Percent/Units, enter the amount of capital being transferred.
          • Note: This number is also relative to the partnership's total capital. If the partner received all of the transfer you would enter 0.5, however, if the partner only receive 15 percentage points then enter 0.15.
      • Note: The total of the amounts entered as received by the partners must match the amount entered for the transferring partner.
  2. Calculate the return.

 

Additional information - [Return]

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