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Federal input screens

Screen L - Balance Sheets per Books (1065)

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Overview

Use the screen to enter information to prepare Schedule L.
When the Schedule B, question 4 answer is
Yes
, Form 1065, Total assets or Schedules L, M-1, M-2, and K-1, Partner's capital account analysis won't calculate. If you want to force them to calculate and/or print, go to the
OthInfo
 screen in the General folder. Enter code
2
 in
Meet all requirements for Question 4? (Force)
 to force the answer to No on Schedule B. If you don't want to force the answer, but still print the schedules, enter a code in
Print schedules when not required
 instead.
Inventories
The application automatically assigns inventory to the first unit of ordinary income activities and its associated cost of goods sold calculation. To assign inventory to a different unit, select the desired unit from the view in the Ordinary Income Unit column.
End of Year assets
There are two fields for each end-of-year account balance. The fields in the End of Year Amounts from Asset Module column display the amounts transferred from the asset module. Generally, the application uses the amount from the Book column in the asset module; however, if the book column is blank, the application uses the amount from the Tax column.
To use a different amount to complete Schedule L, enter an amount, including 0 (zero), in the corresponding field in the End of Year column.
note
The data retrieved from write-up applications appears in the End of Year column.
When you use the asset module, amounts transfer as follows.
Asset
Source of amount in first field
Buildings and other depreciable assets
The sum of the amounts in the
Cost / Basis
 field of the asset module for all assets except those coded as Amortization (except assets marked as Computer Software in the method wizard), Units of Production, Land, or Memo in the
Method
 field (except when you mark the
Include memo asset on balance sheet
 checkbox in the Asset detail dialog and then Other tab).
Less accumulated depreciation
The sum of the amounts in the
Prior Depreciation
 field and the
Current Depreciation
 field of the asset module for all assets except those coded as Amortization, Units of Production, or Land in the
Method
 field.
Depletable assets
The sum of the amounts in the
Cost / Basis
 field of the asset module for all assets coded Units of Production in the
Method
 field.
Less accumulated depletion
The sum of the amounts in the
Prior Depreciation
 field and the
Current Depreciation
 field of the asset module for all assets coded Units of Production in the
Method
 field.
Land (net of any amortization)
The sum of the amounts in the
Cost / Basis
 field less the amounts in the
Prior Depreciation
 field and the
Current Depreciation
 field of the asset module for all assets coded Land in the
Method
 field.
Intangible assets
The sum of the amounts in the
Cost / Basis
 field of the asset module for all assets coded Amortization in the
Method
 field (except assets marked as Computer Software in the method wizard).
Less accumulated amortization
The sum of the amounts in the
Prior Depreciation
 field and the
Current Depreciation
 field in the asset module for all assets coded Amortization in the
Method
 field.
Accounts payable / Mortgage, note, bond pay in less than 1 year / Other current liabilities / Loans from partners / Mortgage, note, bond pay in 1 year or more / Other liabilities
Use the statements to enter detail required for the return. The application uses the year-end amounts you enter here, along with amounts you enter in the Liabilities section in the K1 Screen, to calculate the partner's share of liabilities by activity on Schedule K-1 and the Partner Basis Worksheet.
By default, the application treats each of these amounts as a Recourse Liability that is at risk and assigns them to the portfolio activity. Use the Liability Classification column in the statement to report the liability as a different classification. Use the Activity Type and Activity Unit columns to assign the liabilities to a different activity.
note
Use the Ptr Alloc fields in the Partner Share of Liabilities section in the SepK Screen of the assigned activity type and unit to specially allocate the liabilities.
All nonrecourse loans
Use the statement to enter detail required for the return. The application uses the year-end amount and amounts you enter in the Liabilities section in the K1 Screen to calculate the partner's share of liabilities by activity on Schedule K-1 and the Partner Basis Worksheet.
By default, the application treats this amount as a Nonrecourse Liability that is at risk and assigns it to the portfolio activity. Use the Liability Classification column in the statement to report the liability as a different classification.
Use the
Activity Type
 and
Activity Unit
 columns to assign the liability to a different activity.
Transfer Schedule M-2 tax basis capital to Schedule L, Partners' capital accounts
Enter X to transfer Schedule M-2 beginning and ending capital from Schedule M-2 to Schedule L.
By default, the application assumes Schedule L is prepared on a book basis and does not transfer tax based Schedule M-2 amounts.
note
The amounts on Schedule M-2 will transfer to Schedule L as-is; no adjustment to the amounts will be made. If other amounts reported on Schedule L are on a basis other than tax, do not mark this field.
Reconciliation of differences in Sch L and Sch M-2 capital, when Sch L capital is tax-based
Use the statement to reconcile the differences between Schedule L and Schedule M-2 beginning and ending capital.
note
Information for this statement is needed only when Schedule L is being prepared on a tax basis. A reconciliation is not required when Schedule L is being prepared on a basis other than tax.

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