Member C transfered membership interest to LLC that results in LT capital loss for Member C. I am showing the loss as a Sch K asset disposition (Screen 19)- which is zero's out Member C's capital account.  I am then entering an M1 adjustment for "deduction of included on sch k but not on books" to reconcile Income. 

It seems the only way I can transfer Member C's capital to the remaining two members is  via an M2 adjustment of misc increase in Capital and then specially allocate.

The goal is to show Member C's capital loss, but no capital gain for the other members (which is triggered when I select "Amount of Loss that is nondeductible" (Screen 19); which would not require an M1 adjustment, bu would then show a corresponding capital gain to the other two members.

Any help would be appreciated.