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Partnership capital account

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Level 1

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.

thanks,

Michael

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4 Replies 4
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Level 15

Have you entered info in Screen 9.1 Change in Ownership?


ex-AllStar
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Level 1

Yes... I entered the two time periods for both partners and the profit, loss, and capital all add up to 100%.

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Level 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.

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Level 10

48% of 98% is 47.04%

** I'm still a champion... of the world! Even without The Lounge.
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