I understand that, but how can the balance sheet, which is per books on the tax return, ever be balanced if we are using partner capital now based on tax basis? Income is reconciled and fine. M1 Line 9 Income is LESS than M1 Line 1. If we are using M1 L9 on M2 L3 this will cause parters capital per return to be understated and thus balance sheet is understated and not correct.
Right now my tax books are correct but the return will not be correct without a positive adjustment to M2 on Line 4 like the person above.
@AliciaP1
