The most common reason for Form 1065 Schedule K-1, Item L, partners' capital account analysis being blank is that Form 1065, Schedule B, Question 6 is marked "Yes" in ProConnect Tax.
When this question is marked "Yes," the following items aren't completed based on the IRS instructions:
- Schedule L
- Schedule M-1
- Schedule M-2
- Form 1065, page 1, Item F
- Schedule K-1, Item L
Refer to the IRS Partner's Instructions for Schedule K-1 for more information.
Follow these steps to generate the above items if the Question 6 requirements are met box is checked:
- Go to the Input Return tab.
- From the left of the screen, select Balance Sheet, M-1, M-2.
- Choose Balance Sheet Miscellaneous from the dropdown menu.
- Locate the Balance Sheet Miscellaneous section.
- Scroll down to the Other subsection.
- Check the box labeled Schedules L, M-1, and M-2: 1=force, 2=when applicable [Override].