2018 UltraTax CS
New (tax) year, new help!
Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Question
Where do I enter partners' capital for Schedule L when Schedule L does not use the same capital account accounting method as Schedules K-1 and M-2?
Answer
Use the following fields in Screen L in the Balance Sheet folder if the beginning or ending capital accounts reported on Schedule L differ from amounts reported on Schedule M-2.
- Partners' capital accounts (Force) - Enter the amounts to be reported on Schedule L.
- Partners' capital account reconciliation - Enter information in the statement dialog to reconcile the differences between the capital balances reported on Schedules L and M-2.
Notes
- The IRS has clarified in the instructions to Form 1065 and on its website in Form 1065 - Frequently Asked Questions that the amounts on a partnership's Schedule M-2 should equal the totals of the amounts reported in item L of Schedule K-1 for all partners. Therefore, UltraTax CS automatically uses amounts entered in Screen M1M2 in the Balance Sheet folder for both Schedules K-1 and M-2.
- To access IRS frequently asked questions on the IRS website from a client's return, choose Help > Tax Subject Index, click the Web Form Instructions option, highlight the IRS Tax Information for Partnerships link, and click Go To.
Related topic: Partner capital FAQs (1065)
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