Turbotax Business form 1065 gift of shares

[dbenson]

Form 1065 K1 section L Parner's Capital. I gifted some shares to my child. How do I get section L to update the correct partner balance? I did change section J "share of profit...." , that does nothing about the capital account balances in section L.  My capital balance should be reduced, and my child should have an equal increse.  Thanks.

[Rick19744]

I am not in a Windows environment (and TT Business is only available for Windows), so I can't access the software, but I would recommend reviewing the input section for the K-1's.

In particular, the section for Box L "other increase/decrease" line.

On your K-1 you would have a decrease, and then an increase on your child's.

I would imagine there would be a space for an explanation, and I would just reflect "gifting of partnership interest"

Another option, would be that this gets adjusted in the partner's information section.

I will also see if another "Champ" is able to provide assistance by having access to the TT Business; @M-MTax 

[M-MTax]

I use different software now for entities and only have the personal version of TurboTax for testing, etc.

However, I think the following from @Rick19744  might be the ticket here, if I recall correctly.

"Another option, would be that this gets adjusted in the partner's information section."

[Rick19744]

Thanks @M-MTax 

[dbenson]

Thanks for the reply.  I have tried to enter in the K-1 on the "other increse line, but it will not allow entry.  Going to the K-1 worksheet for that partner, it only allows entry in the "basis" column, not the "capital" column.  Entering anything in the basis column does not transfer over to the K1.

[dbenson · Accepted solution]

Found it!  There is a right-click option on that cell to "override".  I was then able to enter the amount in that field, and enter the description in additional information section.