Turbo Tax Business-K-1 Basis Statement

[tglombardi]

Is anyone else having trouble generating section L of the K-1 within the Turbo Tax Business software?  I called last weekend and they did say there was a bug in the system preventing the K-1 worksheet information from rolling up into section L of the K-1.  

I have checked every day this week for an update and nothing yet.  

[PatriciaV]

Yes, the partner's capital section on Schedule K-1 should automatically appear if the information was displayed on the prior year K-1's. If this is not what you are experiencing, please check the following:

Option 1:

1. Open your return in TurboTax Business and go to Forms Mode from the TurboTax header.
2. Click on Form 1065 p1-3 in the left column to open the form in the main window.
3. Scroll down to Schedule B, Line 4d.
4. If Line 4d is marked "No," Schedule L will not be included. However, if you check the box "Yes" under "Completion of Schedule L, M-1, M-2 etc Smart Worksheet," TurboTax will complete Schedule L. This information will then flow to Schedules K-1.

Option 2:

1. Open your return and go to Federal Taxes >> Balance Sheet
2. Are your Total End-of-Year Assets less than $1,000,000?
3. If this is true, and your income is less than $250,000, when you click Continue, the next page "Good News" will automatically check the box for "Yes, I want to skip this balance sheet section."
4. Instead, click "No, I want to complete my balance sheet." This will force the program to complete Schedule L. You will also need to enter your balance sheet info, and it must balance. (See How do I reconcile my balance sheet in TurboTax?)

[tglombardi]

Thank you so much.  I am going to re-visit this issue this evening.  

Part of my issue stems from my 2021 (I know the new requirement stated 2020 was the first year that basis needed to be recorded) being the first year I am reporting this basis, so nothing rolled forward.  

[tglombardi]

Thank you again, option one worked for me.  

I am still having an issue entering my beginning capital capital amount.  I could enter all of the data in the current year so that my ending capital is accurate, but prefer not to do this.   Any insight on how to enter a value for beginning capital? 

thank you 

[DianeW777]

The steps are printed below for your convenience. This information is from our awesome Tax Expert @PatriciaV and may provide the steps needed to enter the beginning capital account for each K-1. Click here to view the information.

• Edit the Beginning Capital Account balance for each member in Forms Mode.

1. Open your return and click the Forms icon in the TurboTax upper right.

2. In the left column, find "Sch K-1 Wks" and click on the form name to open it in the large window.
3. Just beneath the partner information, you will see columns for Capital and Basis, starting with "Beginning of Year."
4. Edit the numbers as needed. (right click then override)
5. Scroll down within the worksheet and repeat steps 2-3 for each member.
6. To return to working on your return, click Step-by-Step in the header.

[tglombardi]

thank you very much.  I will attempt the edit this evening. 

[That Guy1]

On the 1120S, you must go to the 1120 information page at the top in forms. Then, check the box to calculate basis.