ProConnect HelpIntuit HelpIntuit

Specially allocating capital accounts for a partnership or LLC return in ProConnect

SOLVEDby Intuit1Updated March 04, 2022

To enter and specially allocate amounts for Schedule K-1, Item L, partner's capital account analysis:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Balance Sheet, M-1, M-2 and choose Sch M-2 (Capital Account).
  3. Enter the Beginning capital.
    • This amount will proforma from the prior year.
  4. Locate the Contributed Capital subsection.
  5. Enter the Cash.
  6. Enter the Property.
  7. In the Other increases (Click on button to expand) field, enter the Description and any amounts.
    • If a Description isn't entered, you won't be able to specially allocate the amounts later.
  8. Locate the Distributions subsection.
  9. Enter the Cash.
  10. Enter the Property.
  11. In the Other decreases (Click on button to expand) field, enter the Description and any amounts.
    • If a Description isn't entered, you won't be able to specially allocate the amounts later.

To specially allocate the capital contributed amounts:

  1. Go to the Special Allocations tab.
  2. Select Beginning Capital (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
  3. Allocate the amounts to the applicable partners.
  4. Select Capital contributed during the year (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
  5. Allocate the amounts to the applicable partners.
  6. Select the Description you entered for Other increases from the list on the left of the screen.
  7. Allocate the amounts to the applicable partners.

To specially allocate the capital distributed amounts:

  1. Go to the Special Allocations tab.
  2. Select Cash & Marketable Securities (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
  3. Allocate the amounts to the applicable partners.
  4. Select Property (enter total in Sch M-2 (Capital Account)) from the list on the left of the screen.
  5. Allocate the amounts to the applicable partners.
  6. Select the Description you entered for Other decreases from the list on the left of the screen.
  7. Allocate the amounts to the applicable partners.

You can only change this setting on a per-client basis in ProConnect.

To change the setting for a single client:

  1. Go to the Input Return tab.
  2. From the left of the screen, select General and choose Miscellaneous Information.
  3. Select Miscellaneous from the top of the screen.
  4. Scroll down to the User Options Overrides section.
  5. Enter a 3 in Capital account reconciliation: 1=condensed, 2=expanded, 3=per partner [Override].
  1. Go to the Input Return tab.
  2. From the left of the screen, select Balance Sheet, M-1, M-2 and choose Sch M-2 (Capital Account).
  3. Enter -1 in Ending capital [Override].

Was this helpful?

You must sign in to vote, reply, or post
ProConnect Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.