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why is book basis balance sheet ( sch L) automatically using tax basis partner capital amounts?

Level 1
 
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4 Replies 4

Ok, that's scary.  Did they change the rules for Schedule L too?

I don't think I've ever actually seen a full "tax basis balance sheet."  Certainly not an accurate one.  And to think, my PPP cash has no basis. 🙂

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Level 15

Probably has something to do with the fact that partners' capital accounts need to be reported on tax basis this year.


ex-AllStar
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Would agree, but just imagine trying to get it to balance for electronic filing.

I wonder if the IRS instructions tell you the place to put the plug number.

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Level 15

What plug?

We always prepare a cash basis balance sheet-starting with book numbers and recording tax journal entries.

I don't use ProSeries but perhaps it will have the option to show book balance sheet on Schedule L while also allowing tax basis capital accounts on the K-1s.


ex-AllStar
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