Question

Why doesn't Schedule M-2 line 1 (beginning partner capital) match what I entered on the balance sheet?

Forum|Forum|2 years ago
February 4, 2024
1 reply
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When I print out my return for review, my schedule M-2 "Analysis of Partner's Capital Accounts" shows a beginning balance that is about 10% higher than the number that I entered in the "Liabilities and Partner Capital" section of the balance sheet.

How is this being calculated?

I'm pretty sure I need the beginning balance to match what I used for the ending balance on my previous tax return.

TurboTax Business Windows

F

fxfAuthor

Here's some more info:

When I view the Schedule K-1 Worksheets, I can see that one of my partner's "Beginning Capital Account" in section L is not correct -- it is too high. I have only two partners in the LLC, and the first partner's "Beginning Captial Account" is correct.

Any ideas where I would look to verify each member's beginning capital account?

PatriciaV

The Partners' Capital beginning balances can be reviewed under Partner/Member information in the Business Info section of the step-by-step process. Using this path for input assures that the info is carried over to all related areas of the return.

These numbers are generally carried over from the prior year return if you used TurboTax Business last year. But you can manually update the numbers presented in this section.

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T

ThomasM125

I have a similar propblem. We are two Members of the LLC and this is the first time I am using Turbo Tax. It would not let me pull information from Quickbooks. How do i manually input Opening Balance of the Capitol Account for each Member?

The beginning capital balance should equal the ending balance from the previous year, that should come over automatically if you used TurboTax in the previous year. Line 21 of schedule L, the partner's capital balance on the balance sheet should equal the same amount, as they both come from the Schedule K-1 Worksheet entry. If you click on the line 21 box, a magnifying glass icon will appear to the left of the box and when you click on it, it will take you to the source entry for that line, the schedule K-1 worksheet.

You enter the opening capital account balance on the schedule K-1 worksheet, towards the bottom of that page where it says total beginning of year: