Entering transferring and receiving percentages and amounts (1065)

Alerts and notices

Use the following procedures to enter transferring and receiving percentages and amounts in the Transfers of Capital grid.

Note: Click here to view a procedure for entering transfers of partner capital.

Entering data in the Transferring and Receiving columns

If you click the Percentage option in the Transfer allocation type group box, enter the partners' transferring and receiving percentages in the Transferring and Receiving columns.

  • For each transferring partner, enter the percentage of the partner's beginning or ending capital that you are transferring. For example, if a partner is transferring all beginning or ending capital in the partnership to another partner, enter 100 percent.
  • For each receiving partner, enter the percentage of the transferred amount that the partner received.

Notes

  • Ending capital includes all transfers made prior to the current transfer.
  • The total percentage of all receiving partners must equal 100 percent.

For example, partner 1 is transferring 40 percent of his 33 percent interest equally to receiving partners 2 and 3. There are two ways to enter this transfer.

Option 1

  1. For partner 1, enter 40 percent in the Transferring column.
  2. For partner 2, enter 50 percent in the Receiving column.
  3. For partner 3, enter 50 percent in the Receiving column.

Option 2

  1. For partner 1, enter 40 percent in the Transferring column.
  2. Choose Tasks > Distribute, or click the Distribute Distribute button button in the Partner Data Entry toolbar, to open the Distribute dialog.

    Note: The Distribute button is available only if there is a percentage or amount that still needs to be distributed.

  3. Highlight partners 2 and 3, and click the Select button to move the partners to the Number of partners selected pane on the right.
  4. Click the Equal option in the Options group box.
  5. Click OK.

If you click the Absolute dollar option in the Transfer allocation type group box, enter the partners' transferring and receiving amounts in the Transferring and Receiving columns.

  • For each transferring partner, enter the amount of the partner's beginning or ending capital that you are transferring to the receiving partners.
  • For each receiving partner, enter the amount received from the transferring partner.

Notes

  • Ending capital includes all transfers made prior to the current transfer.
  • The total amount of all receiving partners must equal the amount transferred.

Entering data in the Transferring FMV and Receiving FMV columns

If you select Property distributions in the Transferring field or in the Receiving field in the Capital account adjustments group box, enter the partners' transferring and receiving fair market value amounts in the Transferring FMV or Receiving FMV column.

Note: If you select Property distributions in both the Transferring field and in the Receiving field, the total amount of all receiving partners must equal the total amount of all transferring partners.