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Partnership ending balance sheet is out of balance in Lacerte

SOLVEDby IntuitLacerte Tax10Updated August 19, 2021

Before you start

First, view the balance sheet on Form 1065 and determine which line or lines is incorrect or causing the balance sheet to be out of balance. Some lines are direct input and output and some items are automatically calculated unless an entry is made in Screen 24, Balance Sheet in the ending column.

The following items are automatically calculated:

Assets

  • Inventories - Screen 11, Cost of Goods Sold (1125-A) entries.
  • Buildings and other depreciable assets - Lacerte will automatically add to the beginning depreciable assets any assets placed in service in the current tax year. The program will also subtract any assets sold during the year to arrive at the end-of-year balance.
  • Less accumulated depreciation - Lacerte automatically enters accumulated depreciation on the balance sheet from assets in the depreciation screen and subtracts any depreciation from assets sold during the year to calculate accumulated depreciation at the end of the year.
  • Depleted assets - Lacerte automatically calculates the ending balance as follows: beginning balance of depletable assets (Screen 37, code 118), plus current year change in depletable assets entered in Oil and Gas (Screen 19).
  • Less accumulated depletion - Lacerte bases its calculation on the entry in Current year book depletion. If this field is left blank, the program uses federal tax depletion to calculate the ending balance of accumulated depletion.
  • Land (net of any amortization) - Lacerte bases its calculation on the amount entered in beginning: Land (net of any amortization) (Screen 24) plus current year change in land on Screen 14, Depreciation (4562).  For this calculation, land entered in Screen 14 is defined as an asset placed in service during the currently year having an entry of 99 in Method
    • The current year change in land from Screen 14, Depreciation (4562) consists of the cost of any land placed in service during the current year minus the cost of any land sold during the current year.
  • Intangible assets - Lacerte automatically calculates the ending balance as follows: Beginning balance of intangible assets (Screen 24, code 121), plus current year change in intangible assets entered in Depreciation (Screen 14).
    • For this calculation, an intangible asset entered in Depreciation (Screen 14) is defined as an asset placed in service during the current year having an entry of 97 in Method, and an entry of amortization in Category, or an entry in Amortization code section (Screen 14, code 17).
  • Accumulated amortization - Lacerte bases its calculation on the entry in Current year book amortization (table or dollar amount) (Screen 25, code 3). If this is left blank, the program uses federal tax amortization to calculate the ending balance of accumulated amortization.

Liabilities

  • Partner's capital account (Line 21) - This amount is automatically calculated on the Schedule M-2 (Screen 28). An override is available in Screen 25, code 107, Ending Capital [O].

If the item is not one of the lines listed above, make the correction in Screen 24 for that line.  If the item is related to one of the lines listed above, verify the input in the appropriate screen or you can override the program's calculation.

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