Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

why are my distributions in section L of K-1 being added and not deducted

stantenn
Level 1

Help please! I am new to ProConnect and doing multi year returns for a client.  The distributions on K-1 in Part III box 19 are correctly showing a negative (eg -1,000).  However, in Part II, box L, the partner capital account analysis is adding the distributions to their balance. 

How it is showing up and calculating on the K-1:

Beginning cap: -0- (first year return)

Capital contributed: 12700

Current year increase/decrease: -8033

Distributions: 8035

Ending Capital: 12702

Shouldn't it show at least a zero basis if not showing the correct math of -3368? How do I fix? Thank you for any help!

0 Cheers
1 Solution

Accepted Solutions
PhoebeRoberts
Level 11
Level 11

Distributions in Box 19 should be a positive number.

View solution in original post

3 Comments 3
PhoebeRoberts
Level 11
Level 11

Distributions in Box 19 should be a positive number.

sjrcpa
Level 15

And remember that the tax basis capital account is not basis. Capital account can be negative. Basis cannot.


Ex-AllStar
stantenn
Level 1

That explains why it is adding it back.  Thank you!