Partner A sold 48% of its 98% interest to Partner C.
I have entered the ownership percentages for the time period before and after the sale, but Lacerte still allocates all the capital to Partner A.
Where do I enter the adjustments to the capital accounts so Partner A's K-1 shows 50% ownership at end of year and Partner C's K-1 shows 48%.
I tried entering positive and negative amounts in other increases and other decreases in M-2, but that does not flow through to the K-1.
The percentages are all correct, but when I enter amounts in other increases and other decreases to reallocate capital, it doesn't allocate it correctly and it does not show up as something to specially allocate. If I put the amounts in contributions and distributions instead, it does show up as something to specially allocate. I may have to do that as a workaround unless I can learn how to do it correctly before the 9/15 filing deadline.
Thanks for the help.