Schedule K-1 Item L current year increase/decrease calculations
To get a breakdown of how the current year increase (decrease) is computed:
- Go to .
- Drill down on the line in Item L.
Net income per books
Drilling down on Net income per books shows that the detail field is influenced by three amounts:
- The partners' book income (the largest part of the computation)
- Adjustments due to transfers/withdrawals
- An adjustment for a final year return, if directed to impact book income
To change what item a transfer affects,
- Go to .
- Change theCapital Adjustmentsdrop-down boxes at the top.
To change what item an adjustment for a final year return impacts,
- Go to .
- Change the drop-down forSchedule K-1 Item L treatment (Mandatory).
Book income is a computation that occurs for each partner and is similar to the way the Federal 1065 Schedule M-1 computes. Drill down on Net income per books to view the computation screen. Like Schedule M-1, the partner's book income is computed backwards from line 9 to get to line 1.
To change the amount on line 1, lines 2, 3, 4, 6, 7, or 9 need to change. The only way to accomplish a change on this detail screen is with partner allocations, since this is the partner's share of Schedule M-1 items. To allocate Schedule M-1 items,
- Go to .
- Allocate items at the summary or detail level on this screen.
Line 9, Income (loss), cannot be specially allocated as a whole since it is made up of individual parts as well. Drill down on the line item to see that this is the partner's share of Schedule K items, pulled directly from the Schedule K-1.
To alter the line 9 total amount on the partner's book income computation screen, you must first alter one of the amounts that the partner is receiving for their Schedule K-1 lines 1-11, 12-13, 16L, and 16M. The only way to alter these amounts is through allocating the line items in a different manner.
- Go to ..
- Select the appropriate Sch K screen.
Other increases
Drilling down on the Other increases line shows that this field is made up of three pieces:
- Increases due to transfers or withdrawals
- The adjustment for final year return, if set to flow here on theReturn InformationorTransfer Optionsscreens, as noted in the Net income per books section above
- Other increases amounts entered directly in the organizer
To enter amounts or detail for other increases,
- Go to .
- Enter information as a summary amount or as detail.
Other decreases
Drilling down on the Other decreases line shows that this field is made up of three pieces:
- Decreases due to transfers or withdrawals
- The adjustment for final year return, if set to flow here on theBasic Return DataorTransfer Optionsscreens, as noted in the Net income per books section above
- Other decreases amounts entered directly in the organizer
To enter amounts or detail for other decreases,
- Go to .
- Enter information as a summary amount or as detail.
