Form 1065 K-1 capital account adjustment

Forum|Forum|1 year ago
February 11, 2025
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How do I enter an “Other increase (decrease)” in K-1 box L in TurboTax Business 2024?

TurboTax Business Windows

PatriciaV

Employee

Please clarify the source of the adjustment you wish to report on Schedule K-1. Does it affect all partners?

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tsbfinancialAuthor

There are 4 partners, two of which are a husband and wife with 25% each. They want to remove the wife and transfer her capital account balance to the husband and increase his ownership to 50%.

I’ve also noticed that TurboTax forces me to enter the wife’s percentage she had just before reducing her to 0% and her K-1 ends up showing 25% as her ending percentage rather than 0% which I think it should show as this is her final K-1 (and it is marked as such). I also work for a corporation that has an interest in many partnerships, and that’s what the final K-1s have always shown when a partner either sells or transfers their interest to another partner.

Thanks,

Tim