Drake Tax - Change the Rounding Partner, Shareholder, or Beneficiary

How to 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 rounding partner, shareholder, or beneficiary. Open the relevant K1 screen and select the option at the top of the screen

  • ​Rounding partner​ (1065),

  • 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/Print 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 Return Note is produced on the NOTES page in View/Print mode identifying the multiple selections.