Knowledge Base

13350: 1041/1065/1120S - Change the Rounding Partner, Shareholder, or Beneficiary

1065 Partnership

How do I change the rounding partner (1065), shareholder (1120S) or beneficiary (1041)?

If the total amounts on all K-1s do not equal the amounts available on the Schedule K, Drake uses the last K-1 in the list to make adjusting entries in order to make the K-1 totals equal the Schedule K amounts. The last K-1 entered is assumed to be that of the rounding partner, shareholder, or beneficiary unless otherwise indicated. 

Rounding is handled differently depending on which year of Drake you are utilizing: 

  • You can select a specific partner, shareholder, or beneficiary for rounding. Open the relevant K1 screen and select the option at the top of the screen
    • ​Rounding Partner​ (1065),
    • Make this Shareholder the Rounding Shareholder (1120S), or
    • Make this beneficiary the rounding Beneficiary (1041).

The selected rounding partner, shareholder, or beneficiary then appears as the last K-1 listed in view mode. 

  • Beginning with Drake16, K-1s are able to be sorted and the rounding K-1 appears based on the sort method chosen instead of always appearing last.

If more than one rounding partner, shareholder, or beneficiary is selected, the program defaults to the first one selected for rounding. In 1065 and 1120S returns, a NOTES page is produced identifying the multiple selections.

Related Links

Also In This Category

Article has been viewed 5.4K times.
Last Modified: 4 Years Ago