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Help please! I am new to ProConnect and doing multi year returns for a client. The distributions on K-1 in Part III box 19 are correctly showing a negative (eg -1,000). However, in Part II, box L, the partner capital account analysis is adding the distributions to their balance.
How it is showing up and calculating on the K-1:
Beginning cap: -0- (first year return)
Capital contributed: 12700
Current year increase/decrease: -8033
Distributions: 8035
Ending Capital: 12702
Shouldn't it show at least a zero basis if not showing the correct math of -3368? How do I fix? Thank you for any help!
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Distributions in Box 19 should be a positive number.
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And remember that the tax basis capital account is not basis. Capital account can be negative. Basis cannot.
The more I know the more I don’t know.
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That explains why it is adding it back. Thank you!