Joe 6464
Level 1
01-26-2022
08:56 AM
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The program populates Form 1065 schedule L line 21 from Schedule M-2 line 9. If my schedule L is on a book basis (which it is supposed to be) this will make the Schedule L incorrect because the M-2 is not reporting on a tax basis (which is correct). I am aware of the new capital rules requiring that they be reported on a tax basis. However, the Schedule L is still on book basis.
I was told to override the capital account line 21 on Schedule L. Not sure if anyone else has run into this and has a better solution that override.
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