Specially allocating capital accounts for a partnership or LLC return in ProConnect

To enter and specially allocate amounts for Schedule K-1, Item L, partner's capital account analysis:

1. Go to the Input Return tab.
2. From the left of the screen, select Balance Sheet, M-1, M-2 and choose Sch M-2 (Capital Account).
3. Enter the Beginning capital.
   • This amount will proforma from the prior year.
4. Locate the Contributed Capital subsection.
5. Enter the Cash.
6. Enter the Property.
7. In the Other increases (Click on button to expand) field, enter the Description and any amounts.
   • If a Description isn't entered, you won't be able to specially allocate the amounts later.
8. Locate the Distributions subsection.
9. Enter the Cash.
10. Enter the Property.
11. In the Other decreases (Click on button to expand) field, enter the Description and any amounts.
    • If a Description isn't entered, you won't be able to specially allocate the amounts later.

To specially allocate the capital contributed amounts:

1. Go to the Special Allocations tab.
2. Select Beginning Capital (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
3. Allocate the amounts to the applicable partners.
4. Select Capital contributed during the year (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
5. Allocate the amounts to the applicable partners.
6. Select the Description you entered for Other increases from the list on the left of the screen.
7. Allocate the amounts to the applicable partners.

To specially allocate the capital distributed amounts:

1. Go to the Special Allocations tab.
2. Select Cash & Marketable Securities (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
3. Allocate the amounts to the applicable partners.
4. Select Property (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
5. Allocate the amounts to the applicable partners.
6. Select the Description you entered for Other decreases from the list on the left of the screen.
7. Allocate the amounts to the applicable partners.