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I have partnership 1065 . they have 38000 in assets and 142000 in liablities. and 172648 in building and improvements balance sheet is not balanced how make it balance

i have partnership 1065 . they have 38000 in assets and 142000 in liablities. and 172648 in building  and improvements when i go forms page 4 , balance sheet is not balanced how make it balanced  in screen 28 capital account
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16 Comments 16

Where are you career-wise?  Are you an aspiring CPA? Have you taken an accounting course dealing with partnerships?

Your question is more complicated than you appear to realize, and I hope you can get educated before you make a serious error.

 

 

IRonMaN
Level 15

If I remember correctly back from my college accounting courses back in 1865, building and improvements are assets.


Slava Ukraini!

The OP must not be a serious tax preparer.  

IRonMaN
Level 15

But I'm never too serious either, so I won't hold that against them 😜


Slava Ukraini!
abctax55
Level 15

How do those numbers tie back to the working trial balance?

How much income/loss for the year?

"Tax software is no substitute for a professional tax preparer"
dmufeed
Level 2

ok there is a huge misunderstanding. i know how to make line 14 and line 22 equal i just want to know what are the calculation steps on how to calculate partner capital account which you put on the beginning capital in screen 28 

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abctax55
Level 15

I just use the numbers from the prior year tax return.

"Tax software is no substitute for a professional tax preparer"
dmufeed
Level 2

Its a fresh new return how to do it for it 

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I assumed that he/she is doing a first-year return.

IRonMaN
Level 15

If it is a fresh new return wouldn’t beginning equity be zero?


Slava Ukraini!
dmufeed
Level 2

So there is 142000 in liability, 38000 in assets and 172648 in depreciation and 5729 in accumulated depreciation. 
total assets = 204919 line 14 on balance sheet sch l

i need to know how to claculate for line 21 the partner capital account 

IRonMaN
Level 15

My question for today is, have you every prepared a 1065 previously?


Slava Ukraini!
abctax55
Level 15

Beg Cap + contrib - withdrawal +/- current year activity.

"Tax software is no substitute for a professional tax preparer"
dmufeed
Level 2

Beg Cap + contrib - withdrawal +/- current year activity.

thats what I followed and i got 43993 which is right

but in this case for my own knowledge is is beg cap is the assets ??

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"If it is a fresh new return wouldn’t beginning equity be zero?"

of course, you are right. But for some reason I had an intuition that he was doing a 1st year return.

My guess is that he works for a firm, and this is a trainer tax return a partner gave him and he doesn't want to ask his colleagues out of embarrassment.  (That was me 30 years ago.)

abctax55
Level 15

Maybe.... what does the partnership agreement have to say about contributed assets?

"Tax software is no substitute for a professional tax preparer"