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Ghosts on the ledger
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Future of professionals report 2025
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Enter partners' capital for Schedule L
Use the following fields in the L screen in the Balance Sheet folder if the beginning or ending capital accounts reported on Schedule L differ from amounts reported on Schedule M-2.
- Partners' capital accounts (Force):Enter the amounts to be reported on Schedule L.
- Partners' capital account reconciliation:Enter information in the Statement window to reconcile the differences between the capital balances reported on Schedules L and M-2.
note
- The IRS has clarified in the instructions to Form 1065 and on its website in Form 1065 - Frequently Asked Questions that the amounts on a partnership's Schedule M-2 should equal the totals of the amounts reported in item L of Schedule K-1 for all partners. Therefore, UltraTax CS automatically uses amounts entered in theM1M2screen in theBalance Sheetfolder for both Schedules K-1 and M-2.
- To access IRS frequently asked questions on the IRS website from a client's return, selectHelp,Tax Subject Index,Web Form Instructions,IRS Tax Information for Partnerships, thenGo To.