It does not appear that your question has been answered regarding having a GAAP balance sheet but Tax Basis capital accounts on the K-1s. Here is what I have found is the fastest and easiest. 1 - Screen 24 - Override the ending partners' capital on the federal balance sheet for last year and this year by typing in the book ending balances (keeps your balance sheet in balance) 2 - Screen 28 - Enter the tax basis beginning capital 3 -  Screen 29 Allocate the beginning tax basis to each of the partners. 4 - Screen 24 Enter the total of your timing differences between book and tax as an other increase or an other decrease. This will be automatically allocated to the partners based on their ownership percentage. You can enter each timing difference separately if you choose. Do not include permanent differences. I am old school and do a tax provision before entering a return so already have the numbers before I start entering. If you have special allocations to some of the partners, you will need to calculate this in excel and allocate this to partners on Screen 29 (754 depreciation, or other specified by partnership agreement)