I have this issue as well - any solutions?  I have a book and tax depreciation difference and I don't know how to make the K-1 schedule L show the tax amount (it is showing the book amount) without changing the M-2.  

Anyone solve this?

This issue is NOT solved.  If someone could take the time to read all the way down and realize that the original question was never answered that would be great. Would love to know the answer to this question which I can't seem to find anywhere.

I have tried everything.  If I do an override as you suggested, the difference shows up as not specially allocated and has to go somewhere.

For 2019 I am disclosing tax basis capital and waiting for Lacerte to capture 2 methods of capital.

For now, we only have the Basis calc to check ourselves on. (ending basis-ending liabilities =  tax capital)

Thanks!  I can't find anything anywhere either.  The override comment was actually me copying the prior post. I was trying to say that person's question was never answered.   Hopefully since it is required for 2020 Lacerte will fix this issue so we can actually report capital on a tax basis without an override.

Exactly.  I was dreaming about this problem for at least 2 weeks straight wondering how am I the only person with this issue.  I finally had to let it go and have faith in the Lacerte gods....

It does not appear that your question has been answered regarding having a GAAP balance sheet but Tax Basis capital accounts on the K-1s. Here is what I have found is the fastest and easiest. 1 - Screen 24 - Override the ending partners' capital on the federal balance sheet for last year and this year by typing in the book ending balances (keeps your balance sheet in balance) 2 - Screen 28 - Enter the tax basis beginning capital 3 -  Screen 29 Allocate the beginning tax basis to each of the partners. 4 - Screen 24 Enter the total of your timing differences between book and tax as an other increase or an other decrease. This will be automatically allocated to the partners based on their ownership percentage. You can enter each timing difference separately if you choose. Do not include permanent differences. I am old school and do a tax provision before entering a return so already have the numbers before I start entering. If you have special allocations to some of the partners, you will need to calculate this in excel and allocate this to partners on Screen 29 (754 depreciation, or other specified by partnership agreement)

Did you mean Screen 29 under step 4? I don't think this necessarily works. The M2 ending must agree to the BS ending capital. I believe the way we're going to get this to work is to be able to change the K-1 capital only and don't think Lacerte supports that. I just took a class that mentioned that M2 ending does not need to agree to the sum of the K-1 capital balances. I'm hoping we can get an update to be able to keep BS on GAAP and K-1s tax.  

Apologies - should be screen 28 (Analysis of Partners' Capital Accounts) on step 4 for entering the timing difference. My M-2 rollforward is on a tax basis but it pulls amounts from the M-1 analysis so you have to enter the timing differences either in total or individually. My schedule M-2 is on a tax basis ands to the totals of the K-1s instead of the balance sheet.

Has anyone resolved this?  I am using Proseries and having the same issue after converting beginning balance to tax and having it still post GAAP income.

Start a new post tagging ProSeries as the software. Also, try to search first; it may have already been discussed there.

Why is this issue marked as solved?  It is not.  We are dealing with the same problem on a 2019 return.  Tech support was of no help either.  Why can’t there simply be overrides on the K-1?