Using TT Business for our 2022 partnership return. In 2022 we sold an asset that had a full 179 deduction from a prior year. This asset was already in TT, and the sale was then entered in the step-by-step section. The sale then appeared in the schedule M-1 income reconciliation and flowed to the K-1 as expected. However, it seems there should also be a corresponding increase to the capital accounts in schedule M-2. After all, the business turned a fully depreciated asset with zero book value into cash. Am I missing something? Should I just enter the sale proceeds on M-2 line 4 manually?
