Tax basis capital account (as reported on k-1, part L )should be the entity Taxable income/(loss) for current year. ( Note taxable income already reflects the removal of nondeductible permanent items.)  The PS auto calculation takes "taxable income/(loss)" and deducts the Schedule M of permanent items thus putting the income/(loss) back to a book basis.  That is wrong.  If you don't over ride and input taxable income/(loss) into the M-2 line 3 schedule, the capital account would be on a "book basis" not the "tax basis".

If using PS, follow the auto calculations and let me know how to get "taxable income/(loss)" reflected on the K1 for Capital Account Analysis (tax basis)....