Diagnostic: 30740 - "Schedule K-1. The default ending Profit, Loss and Capital percentages printed on the Schedules K-1, Part II, item J..." with a 1065 return using worksheet view in CCH® ProSystem fx® Tax and CCH Axcess™ Tax.
Full Diagnostic Text
Schedule K-1. The default ending Profit, Loss and Capital percentages printed on the Schedules K-1, Part II, item J for all Partners who were involved in a transfer of Interest that resulted in a termination of their interest will be equal to their Profit, Loss and Capital percentages immediately before the termination. This will result in the total ending Profit, Loss and Capital percentages printed on the Schedules K-1 exceeding 100%. If the partner's interest was changed, but not terminated, then the Profit, Loss and Capital percentages in effect at the end of the partnership year are used. The percentages can be changed by either selecting the option to print the percentages after transfers as ending percents under Partners worksheet / General Options / Schedule K-1 Calculations Options / K-1 percentages print code or entering the desired Profit, Loss and Capital percentages on the Other Payments / Printing Percentage Overrides / Other Options section of the Partner Information worksheet.
Resolution
If a partner is input as involved with Transfer of Interest and/or Transfer of Capital then their beginning and / or ending ownership percentages will be affected. As of tax year 2017, the system defaults to the IRS expected presentation of beginning and ending Profit, Loss, and Capital percentages for partners that have withdrawn from, or entered into, the partnership during the year.
To change the default presentation, please see the following steps:
To change the default presentation, please see the following steps:
- Go to Partners > General Options worksheet.
- Expand Section 2 - Schedule K-1 Calculation Options.
- In Line 1 - K-1 Percentages print code, select an applicable option.
- In Line 5 - Print the schedule K-1 default beginning profit, loss and capital percentages, select the checkbox, if applicable.
- Calculate the return.
Notes
- If either input listed above is used, diagnostic 30740 and/or 30741 may clear.
- Alternatively, input can be utilized to control specific partner K-1 presentation:
- Go to Partners > General Options > Section 4 - Schedule K-1 Printing Percentages - Printing Purposes Only, to specially allocate beginning or ending percentages as needed.
- Or, go to Partners > Partner Information worksheet > select the applicable partner from the list > select Detail > Expand Section 4 - Other Payments / Printing Percentages Overrides > In Lines 8-10 - Profit, Loss, Capital: Beginning / Ending columns, input as needed.
| Solution Id | 000206589/000077364 |
|---|---|
| Direct Link |
