How can I get net income in the K-1 capital account section to be on a tax basis? Currently it is pulling book income from the M-1, not taxable income.

msussman90-gmail · ‎10-27-2021

Currently, the net income per the K-1 capital account section (item L) is applying the ownership percentages to the net income per books line of Schedule M-1 as opposed to to the taxable income line. Item L on the K-1 is supposed to be computed on a tax basis.

George4Tacks · ‎10-27-2021

I think the HOW TO is here https://proconnect.intuit.com/community/form-1065/help/form-1065-schedule-k-1-item-l-partners-capita...

OR somewhere in this search https://proconnect.intuit.com/community/forums/searchpage/tab/message?advanced=false&allow_punctuati...

click Articles

Answers are easy. Questions are hard!

msussman90-gmail · ‎10-27-2021

Thanks. I’m not having a problem with Item L being blank but rather it’s being calculated on a book basis instead of tax basis