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Supplemental Information on 2020 Form 1065, Schedule K-1

RAD
Level 1

Supplemental Information on 2020 Form 1065, Schedule K-1 states that Capital Account was not on Tax Basis in Prior Year.  In my case, Capital Accounts were on Tax Basis in Prior Years.  How do you get rid of statement that Capital Account was not on Tax Basis in Prior Years?

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5 Replies 5
MiltonSDay
Level 1

I would like to know that too!

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George8
Level 1

I was having the same issue and then checked the wording on screen 28. In the box at the top called "Method used to determining beginning capital", it should be left blank since the title of that section states that it is only to be used "If tax basis method was not previously used"  Hope that helps. If that box was already blank and you still get the message, I don't know how to help.

MiltonSDay
Level 1

Thanks for your help.

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RAD
Level 1

Thank you for correct answer.  Screen 28 should be left blank if prior year was tax basis.  My proforma had Tax Basis in beginning balance method which caused the problem. Leave it Blank!

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pbleeg
Level 2

Thank you George8!!

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