Partnerships and LLCs need to report capital accounts on Schedule K-1

Scenario

Beginning in taxable year 2021, all [partnerships / LLCs] must report [partners’ / members’] capital accounts using the tax basis method on California Schedule K-1 (565/568). Current year net income/loss and other increases/decreases are now separately reported in columns (c) and (d), respectively

Solution

Select
California
, then
Schedule L and M
worksheet.
Find section
Schedule M-2 Overrides
lines 1-7.
Select Form
California
, then
CA9
, fields 180, 181, 182, 183, 270, 244, and 245.

Select
Partners
, then
Partner Information
.
Select the State Specific worksheet and go to section
California General Options and Book Amounts
.
Enter the detail in lines 14-23.
Select Form
California
, then
CA9
, fields 30, 122, 124-185, and 187.