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An increase in your capital account is not considered income and will not show as income on your tax return. For a good explanation of capital accounts, please see this article: Partnership capital account
This is what I learned from other posts. The amounts in the capital account section of the K-1 Form 1065 are not sent by TurboTax to the IRS. Any discrepancies here will not matter until you receive a final K-1 when the partnership is liquidated. At that time, you need to report any gain or loss on form 8949. You need to calculate the gain or loss yourself if the amounts on "Current year income (loss)" and "Other increase (decrease) (attach explanation)" lines are not already reflected on lines 1-20 through the life of the partnership.
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