K1

I have $7 dollars in interest income split between 10 LLC members and K1 worksheet is showing -$2 for one member and it comes up as an error. All members have the same ownership %. It almost looks like a rounding error. Any ideas on how to fix this?

posted

@bswindle wrote:

Any ideas on how to fix this?

One possible solution is simply to input $10 instead of $7 on your 1065. $7 divided by $10 is $.70 (70 cents) which would round up to $1 on the members' K-1s anyway. This way, each K-1 would show an even dollar.