Asking again in hopes someone will answer. I filed our partnership informational return for 2015 with the business turbotax. Somehow it let me skip the section regarding my capital account balance. So on my and my partner's K1s for 2015, the capital account sections were left completely blank. Do we need to file amended returns both for the business and personally? I guess I'm surprised Turbotax would allow me to move forward and file the return without completing that information if it was vital. I realized this mistake as I was beginning the 2016 partnership return and got to that section. It recommended referring to my 2015 K1 for each partner to enter the information. That's when I realized I had not completed that section. Still navigating the learning curve!
I would recommend that you file an amended 1065, with the revised Schedule K-1 information, and going forward you should definitely always complete the partner capital account balance.
Although, it is unlikely that you will incur a penalty if you do not amend the return.
Certain partnerships that do not meet specific gross income or gross asset thresholds are allowed to omit certain information on their partnership return, however in some cases this information can be very helpful in preparing future returns.
Partner's have both inside and outside basis, and in many cases they can be the same. The capital account balance on the partnership books is the inside basis. The outside basis is the partner's investment in the partnership, and is used to measure such things as gain on the disposition of partnership interest.
Click here for IRS publication 541 Partnerships.
I would recommend that you file an amended 1065, with the revised Schedule K-1 information, and going forward you should definitely always complete the partner capital account balance.
Although, it is unlikely that you will incur a penalty if you do not amend the return.
Certain partnerships that do not meet specific gross income or gross asset thresholds are allowed to omit certain information on their partnership return, however in some cases this information can be very helpful in preparing future returns.
Partner's have both inside and outside basis, and in many cases they can be the same. The capital account balance on the partnership books is the inside basis. The outside basis is the partner's investment in the partnership, and is used to measure such things as gain on the disposition of partnership interest.
Click here for IRS publication 541 Partnerships.