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Level 2
March 1, 2021
Question

Partnership K-1's

  • March 1, 2021
  • 1 reply
  • 13 views

Partnership K-1 capital accounts are supposed to shown on a tax basis this year.  The total of the capital accounts flow into the balance sheet which is on a book basis. How can you accomplish this contradiction? 

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1 reply

Level 6
March 1, 2021

In screen 28 for Schedule M-2, check the box for "recompute Sc. M-2, line 3 if partnership books are NOT on tax basis".