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Get your taxes done using TurboTax
@PatriciaVthanks. The capital account beginning balance for M02 came from last year's balance sheet. There was no ending balance to carry over as a beginning balance this year because we didn't complete Schedules L/M last year.
Again, we're a cash basis Mom&Pop, the business has no property, and have no business use for tracking equity or even for a balance sheet. We did not have a tax obligation to track our capital accounts until this year.
I'm heading the way you suggest, because I'm left with the only thing I can try is to recreate both the Schedule M-2 and the balance sheets needed to complete them for each year.
I'm hoping it works, though I don't see any reason why it would.
If I had known that these Schedules L/M would not balance without having tracked every prior year, I would have done it from the start.