@mlbs11 You are good to go based on your facts.
This is confusing since the IRS mandated that the K-1 reflect a tax capital account basis.
As a result, Schedule L is based on your books and records and Schedule M-2 is based on the changes during the tax year in the partners' tax basis capital.
So if your Schedule K-1 capital account analysis agrees to Schedule M-2, you are good to go.
Schedule L and Schedule M-2 will generally not agree.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
