My 1065 has a total $, and it is divided up to our members equally. But, when I add the K-1's up it is higher that the total on my 1065. I know why, but I'm curious if this should be addressed or leave as is? The k-1's all have .50 which is rounded up to the nearest $. That rounding up makes the sum of the K-1's higher than the 1065.
Example.
1065 = $972
8 K-1's = $122 ($972 / 8 = $121.50)
8 X $122 = $976

So in the above example, the total of the K-1's are 4 dollars more that I'm reporting on the 1065.

Advice is appreciated.

Rounding does not cause a material and is acceptable to the IRS.
While it's not much consolation, rounding works both ways. What would
have happened if the 1065 has $970? The K-1s would be less than the
1065.

Mark Eckman

On 2/1/12, Gerald Wade Roberts <wrobe73928@cox.net> wrote:
> My 1065 has a total $, and it is divided up to our members equally. But,
> when I add the K-1's up it is higher that the total on my 1065. I know why,
> but I'm curious if this should be addressed or leave as is? The k-1's all
> have .50 which is rounded up to the nearest $. That rounding up makes the
> sum of the K-1's higher than the 1065.
> Example.
> 1065 = $972
> 8 K-1's = $122 ($972 / 8 = $121.50)
> 8 X $122 = $976
>
> So in the above example, the total of the K-1's are 4 dollars more that I'm
> reporting on the 1065.
>
> Advice is appreciated.
>