Slight correction- if you do the above, contrary to TT's statements that the balance sheet numbers come from a transfer from previous periods, and statements that Schedule L (balance sheet) lines 9-11 do NOT come from the asset depreciation worksheets, they do if you are a first year filer.
If you select to see the balance sheet for the first year of the business and if you have done the fix suggested above, for the assets where you put a startup date of earlier (like 6/12/2007 in the example) that the starting business date, IT WILL pick up that asset as a "start of year" asset. Then your balance sheet may not balance, and it cascades to issues in the M-2 schedule.
One option is to ignore the balance sheet and related schedules completely for the rest of your business' existence, but if the business grows and the assets go above $1,000,000 you will need to go back and fix the issue then. If the business sells assets and relys on the Capital Accounts show on the K-1's, those may be wrong.
Working on a better solution....
