Form 1065 K-1 capital account adjustment

[tsbfinancial]

How do I enter an “Other increase (decrease)” in K-1 box L in TurboTax Business 2024?

[PatriciaV]

Please clarify the source of the adjustment you wish to report on Schedule K-1. Does it affect all partners?

[tsbfinancial]

There are 4 partners, two of which are a husband and wife with 25% each. They want to remove the wife and transfer her capital account balance to the husband and increase his ownership to 50%. 

I’ve also noticed that TurboTax forces me to enter the wife’s percentage she had just before reducing her to 0% and her K-1 ends up showing 25% as her ending percentage rather than 0% which I think it should show as this is her final K-1 (and it is marked as such). I also work for a corporation that has an interest in many partnerships, and that’s what the final K-1s have always shown when a partner either sells or transfers their interest to another partner.

Thanks,

Tim