Hello,
I was employed at a private partnership firm where I had received restricted units. I have been receiving K-1 and entering it in TT every year. I left the firm last year and received the final K-1(including distribution in Field 19) which I am trying to input into TT this year. I was wondering if someone could provide some clarity on the following:
Line L:
Beginning Capital Account: 68,911
Capital contributed during the year: 13,402
Current year net income (loss): 2,962
Other increase (decrease): (5,124)- Refers to Adjustment to Tax Capital for Leaving Partners
Withdrawals and distributions: 80,151
Box 19: Distribution
A: 80,151
Questions:
- Where do I enter the Box L info?
- Isn't that needed for computing the gain/loss on the distribution?
- How is this used "Other increase (decrease): (5,124)"
- I have entered all the other fields of the K-1(screenshot below)
Thanks!
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Yes, let's answer these questions individually.
Now you capital account should be zero since you no longer a partner in the firm, which is what it should be. The only time this information is taxable is if your distributions were in excess of your basis in your capital account. If this was the case, then the excess would have been taxable to you. in your case, this isn't an issue. Here is how to report the information in your return.
Thanks for the response.
For Point(1), you mention "All box L is entered in a screen titled Enter Capital Account Information.". Could you please provide the navigation to get to this screen- I cannot find this in my TT Premier edition.
I also looked at Forms but could not find anything named Enter Capital Account Information.
Schedule K-1 Part II Section L appears under your personal information on the left column of the form with the title "Partner's Capital Account Analysis."
To enter this in TurboTax Premier/Premium using step-by-step:
Your other option is to use Forms Mode, available only in TurboTax for Desktop.
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