Regarding Domestic LLC K-1 and the 1040
I am currently doing my K-1 and 1040. My 1065 / K-1 is for a domestic LLC treated as a partnership for taxation purposes. This is a 2-person LLC and our profit/loss/capital sharing is as follows:
We have a ordinary business loss of $10,000.
On the K-1 in line 1 of Part III, the software automatically puts in -$1,600 for Partner A and -$8,400 for Partner B.
Shouldn't the TurboTax software be putting in -$10,000 for Partner B and $0 for Partner A since there is a loss?
My other question was: If it is correct in this case to put -$1,600 for Partner A and -$8,400 for Partner B, what/how should it be transferred to the 1040 in the case with the current profit/loss/capital percentages.
Thank you so much in advance.