Partnership Capital Accounts

[ASD123]

For 2020 showing partnership capital accounts on the tax basis vs GAAP for the first time.  I have made proper adjustment to beginning capital and schedule M-2, but appears proseries is still allocating current year book income on capital account analysis, instead of tax income.  I am missing a checkbox?

[sm965897 · Accepted solution]

Hello,

The beginning balance for Schedule M-2 is adjusted based on the adjustments for each partner on the Schedule K-1 worksheet, which you said you have adjusted. The program does not automatically make any new adjustments for current year net income/loss on Schedule M-2, line 3. By default, the program will bring this number from Schedule M-1 or Schedule M-3, whichever applies. We have made the field editable so it can be manually changed if a different value is desired.