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Partner Capital Account

Referee
Level 1

Beginning with the 2020 partnership return, item L of the K-1 is required to be reported using tax basis.  IRS's 1065 instructions say current year net income is the partner's distributive share of partnership income.  ProSeries is not using a distributive share calculation (ordinary income, interest, etc.) to calculate the current year income here.  The ProSeries cross reference says it uses net income per books.  The cross reference continues on by saying ProSeries provides 2 choices for calculating income.  I've used both options and still get the same incorrect answer with both options. 

I maintain the books and report schedule L on a GAAP basis.  Why does ProSeries say they use income per books to calculate the current year net income for item L?  How can I calculate item L correctly?

 

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