K1 - begining capital account

[PatriciaV]

@Eureka2022

The import experience that omits the Beginning Capital Balance is still under investigation. However, the work-around mentioned by sms56 has been used successfully by other users.

Specifically, edit the Beginning Capital Account balance for each member in Forms Mode.

Open your return and click the Forms icon in the TurboTax header.

1. In the left column, find "Sch K-1 Wks" and click on the form name to open it in the large window.
2. Just beneath the partner information, you will see columns for Capital and Basis, starting with "Beginning of Year."
3. Edit the numbers as needed. If the form doesn't allow direct entry, right-click and choose Override.
4. Scroll down within the worksheet and repeat steps 2-3 for each member.
5. To return to working on your return, click Step-by-Step in the header.

[DEB-DW]

I read someone else's post, this is what I learned. On the k-1, section L,  put your cursor in the box labeled partner's beginning capital account, right-click and then in the pop-up select "override" and then type in your beginning balance. Then the program adds & subtracts to the ending capital account.

[larner]

PatriciaV,

The approach you suggested does not work.

The Beg of year "Capital" field does not allow entry, at all. The right click "Override" menu option is greyed out.

This works fine for years 2019 and 2020, I just checked...but in TT Business 2021, the field *cannot* be overridden.

The only means to resolve that I can find is to use the right menu override option to override the partner's k-1 item L beg cap account balance field.

This, though, nullifies the TT calculation accuracy guarantee. So not an acceptable workaround.

Please advise.

[PatriciaV]

@larner

Please see attached screenshot of Schedule K-1 Worksheet (Sch K-1 Wks) for a partnership return in TurboTax Business 2021. The Beg of year (tax basis) field under Capital is available for entry using the override command (right click empty field). The entered number will appear in a red font, but no form error is generated.

If this is not the experience you are seeing, please provide more information regarding the type of business return you are preparing.

[larner]

PatriciaV,

Your screen shot shows the exact form which does not allow entry for me. (Schedule K-1 Worksheet (Sch K-1 Wks) for a partnership return in TurboTax Business 2021 -f1065)

The only difference is that in my worksheet, the Beg of year Capital field is pre-populated in green font, having been transferred from the prior year's return.

And, when I open the right click menu that your screen shot provides, the "Override" menu option is grayed out, as I previously explained.

Please advise.

[PatriciaV]

@larner

The discussions in this thread addressed adding beginning capital that was omitted from data imported from a prior year.

If you successfully imported your 2020 business return into TurboTax Business 2021, you cannot override any imported numbers (which are green).

Why do you need to change the beginning capital balances? Those numbers must match the info submitted to the IRS last year.

[larner]

But it works in TTB 2019 and 2020 under the exact same circumstances.

I need to update the beg bal capital because last year's balance was incorrect.

I've used TTB for over 20 years, and as far as I can recall, I have always been able to enter/override data that is in a blue or green font.

Please advise.

[AnnieMacGSP]

@larner As mentioned my method was to open the prior year TY2020 and change the cap acct balances from there so the ending cap accounts transferred over to TY2021. 

Afterward I checked out the option [that others suggested] to override inputs on the TY2021 forms and was able to override the data as well.  However there are a few differences: for TY2020 the Sch K-1 Wks with entries in blue and green allows typing over the numbers easily.  The same worksheet Sch K-1 Wks in the TY2021 program did NOT allow a simple type-over at the Sch K-1 Wks NOR did it allow overrides (right-click/override or Ctrl-D).  However the individual partners’ Schedule K-1 forms allowed the override.  The numbers were in black until I right-clicked and then selected Override, then the numbers turned red; at that point I was able to type in numbers.

Hope this helps.

[PatriciaV]

@larner

I recommend the method described by @AnnieMacGSP: Revise your capital balances in TurboTax 2020 and import the updated return into TurboTax 2021.

The forms in TurboTax 2020 may function differently because 2020 was the year the IRS changed how partners capital balances were reported. Overrides may have been added to those forms so the historical information could be updated for the the new IRS rules. Since this flexibility is no longer needed, it's possible the fields have been locked down to prevent calculation errors.

[AnnieMacGSP]

FYI: https://www.cbiz.com/insights/articles/article-details/irs-unveils-2020-tax-basis-capital-reporting-.... 

[PatriciaV]

@AnnieMacGSP - Thank you for adding that reference.

[larner]

Yes, that is a potential workaround, just one that requires much additional time and effort, as I had already completed much of the return.

Given that it is not unusual to have to AMEND prior returns, which is the case here, it seems overly burdensome that TTB should lock the beg bal capital fields in this case. It is NOT consistent with its historical and current functionality of allowing *other* fields which TTB calculates to be overridden. Why lock these fields and not others?

[larner]

Thanks Annie,

And yes, I was able to override item L values directly on each partners k-1 as you indicated.

However, as I've indicated, this presents data integrity issues that may impact the validity of TTB calc guarantee as well as my ability to file the return electronically. :(

[larner]

I'll also note that in overriding the Item L cap balance directly on the k-1, it then becomes necessary to override the Capital field "Total beginning of year" on the Sch K-1 Wks in order to reconcile Schedule K.

[Cornell53]

so, is there a software update for this glitch and when?  Thank you