Schedule K-1 Item L current year net income (loss) incorrect
Item L's current year net income (loss) may show the wrong amount if multiple overrides are selected or the allocation code isn't set up correct.
Schedule K-1 Item L calculates using a book basis rather than a tax basis. To fix or show tax basis amounts, adjust the Net Income Per Books override settings.
- Go to .
- In theNet Income Per Books - Overridessection, select only one of the 3 options. Selecting multiple options causes incorrect calculations.
- If usingOption 3, enter the amount and allocation code on the lineOverride Sch M-2, line 3 (Net income per books) and the partners' Item L current year net income (loss).
- Perform a full recompute.
If the form still doesn't display the correct amount after completing the steps earlier:
- Override the amount on the yellow workpaper with the tax basis amount.
note
It calculates Schedule K-1 Item L using a book basis rather than a tax basis. To display tax basis amounts in Schedule K-1 Item L, you must use an override.
