Schedule L on Form 1065 U.S. Return of Partnership Income

[lorizeigenbein]

My question regards Form 1065 U.S. Return of Partnership Income Schedule L Balance Sheets per Books.  Specifically, if your LLC meets one of the three criteria and Schedule L, M-1 and M-2 are required then TurboTax carries six values forward from form 4562 Depreciation and Amortization Report:  Line 9a & b. 

So hypothetically:

 Buildings and other assets beginning of year 814,117 less accumulated depreciation 556,147 is $257,970  (columns a & b). 

And End of year 859,809 less accumulated depreciation 556,147 is $303,662.

 The difference between 303,662 less 257,970 is our Section 179 depreciation. $45,692

  My question is how does one properly account on the Balance Sheet Schedule L to adjust for the Section 179 depreciation?   (side note:  the same imbalance occurs if you use special deprecation allowance. )

[M-MTax]

Sec 179 deductions are separately stated items on SCH K of your 1065

[lorizeigenbein]

Yes, the Section 179 deduction is listed in box 12 of Schedule K-1.  

My question is :  should it also appear on Schedule L since that is the amount that Schedule L is out of balance before I have entered any of my other data?  And if so, on what line?

[M-MTax]

That should come off your partners' capital accounts in the amount of the SEC 179 deduction.