If Beginning Capital is entered under Schedule M-2, ProConnect will allocate the beginning capital to the partners based on their partner percentages. If "0.000000" is entered for the ending ownership of capital under Partner Percentages, the partner's beginning capital will show "0" on Item L of the Schedule K-1.
Use the following steps to allocate beginning capital to the partners with "0.000000" ending ownership of capital if necessary:
- Go to Input Return ⮕ Special Allocations.
- Locate the Beginning Capital option under Amounts to Allocate and select it.
- Enter the appropriate amount for each partner using dollar amounts or percentages.
Note: If the checkbox iunder Other Information (Schedule B), Question 4 requirements are met is checked, Item L will not generate. There are two options to get Item L to print.
- Remove the checkmark for this box OR
- Go to Input Return ⮕ Balance Sheet ⮕ Balance Sheet Miscellaneous and enter a 1 in, Schedules L, M-1, and M-2: 1=force, 2=when applicable [Override], for Item L to populate in the Schedule K-1.