@Mike9241 wrote:
line 10 on page 1 is supposed to exclude capitalized guaranteed payments. schedule k line 4, k-1 line 4 and m-1 line 3 are supposed to report total guaranteed payments.
That is all in line with my return.
@Mike9241 wrote:
so the only way to balance the m-1 is to use line 7 to report the capitalized guaranteed payments.
My M-1 line 7 contains nothing, which I believe is correct because my M-1 line 9 correctly matches Analysis of Net Income line 1.
Another note after researching this:
M-2 line 3 instructions call for it to match Analysis of Net Income line 1. However, mine matches M-1 line 1 (income per books). TurboTax notes: 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.
