• To view this solution using the worksheet view, see our solution on how to enter a transfer of interest in a 1065 return using worksheet view.

Use Interview Form K-6 - Changes in Partners' Interest & Transferring Information to compute effective partner profit / loss ratios or time segmented allocation ratios for those partners whose interests in the partnership have changed during the year. Enter only partners whose ratios changed during the year. Use multiple interview forms if more than 10 partners have changed interests.

Entries on Interview Form K-6 - Changes in Partners' Interest & Transferring Information are used only to recompute the profit / loss ratios and are not used to transfer the partners' ending capital balances. Use Interview Form K-7 - Transfer of Capital to adjust the ending capital accounts for existing or new partners due to a transfer of a partner's interest in the partnership or due to a withdrawal of a partner from the partnership.

1. Go to Federal Interview Form K-1 - Partner Information.
   • In boxes 30 through 216 - Partner's Information, enter the new partner's information.
     • Note: Do not enter any Profit/Loss/Capital Percentages for the new partners.
     • The program uses K-1 percentages as "Beginning of the Year Percentages" and uses entries on interview forms K-6 and K-7 to calculated changes.
2. Go to Federal Interview Form K-6 - Change in Partners' Interest & Transferring Information.
   1. Box 40 - Date of Change, enter the date.
   2. Box 42 - Partner Number, enter the corresponding partner number.
   3. Box 52 - Resulting Percentage/Units, enter the partner's resulting profit/loss percentage after the change (Enter as a decimal).
3. Repeat these steps for other partners, moving down the numbered sheet.
4. Calculate the return.

Notes:

• If the change involves more the 10 partners add a new sheet by going to Forms > New Sheet.
• If a partner is not included on the K-6 then the program will assume that their profit/loss percentage did not change.