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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!

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Accepted Solutions
PhoebeRoberts
Level 10
Level 10

Distributions in Box 19 should be a positive number.

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3 Comments 3
PhoebeRoberts
Level 10
Level 10

Distributions in Box 19 should be a positive number.

stantenn
Level 1

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

sjrcpa
Level 15

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


Ex-AllStar