Here is the message Turbotax has on my return (Important note: If the net income per tax return shown on Schedule M-1 or M-3 does not reflect the net income (loss) used in maintaining the partners' tax basis capital accounts, the amount on Schedule M-2 must be adjusted to reflect the amount for tax basis capital accounts. The program will make the adjustments from the Schedule M-2, Line 3 Smart Worksheet.The adjusted amount will be used for Schedule K-1, Section L. All amounts on Schedule K-1, Section L, must now be computed using tax basis capital accounts. I am not sure what my response is supposed to be
