Partnership capital account

Forum|Forum|5 years ago
September 9, 2020
2 replies
22 views

Partner A sold 48% of its 98% interest to Partner C.

I have entered the ownership percentages for the time period before and after the sale, but Lacerte still allocates all the capital to Partner A.

Where do I enter the adjustments to the capital accounts so Partner A's K-1 shows 50% ownership at end of year and Partner C's K-1 shows 48%.

I tried entering positive and negative amounts in other increases and other decreases in M-2, but that does not flow through to the K-1.

thanks,

Michael

Lacerte Tax

This topic has been closed for replies.

sjrcpa

Level 15

Have you entered info in Screen 9.1 Change in Ownership?

The more I know the more I don’t know.

M

mhlesterAuthor

Level 4

Yes... I entered the two time periods for both partners and the profit, loss, and capital all add up to 100%.

M

mhlesterAuthor

Level 4

The percentages are all correct, but when I enter amounts in other increases and other decreases to reallocate capital, it doesn't allocate it correctly and it does not show up as something to specially allocate. If I put the amounts in contributions and distributions instead, it does show up as something to specially allocate. I may have to do that as a workaround unless I can learn how to do it correctly before the 9/15 filing deadline.

Thanks for the help.

Accountant-Man

Level 13

48% of 98% is 47.04%

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