LLC Partner Capital Beginning Balance Not Transferring to 2022

Forum|Forum|3 years ago
March 9, 2023
1 reply
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Hello,

In 2021, I had to start completing a balance sheet for my LLC, and my beginning balance for my partner capital account was $10K. When I transferred my 2021 Turbotax file into 2022, the partner capital balance only includes my net income/loss from 2021. It does not include the beginning partner capital from the beginning of 2021.

I ended up adjusting the 1065 balance sheet to make it balance, but my state Form 568 is still off. I tried to adjust the CA Form 568, but it is making me add the $10K into my current 2022 net income / loss, which means the K-1's will mistakenly include this extra $10K.

Any suggestions on how to fix this would be appreciated.

Thank you

Hayley

TurboTax Business Windows

PatriciaV

Employee

Confirm the Capital and Basis boxes are filled out on Sch K-1 Wks for each partner. Normally, the number in the Capital box is pulled into the California worksheet. If those boxes are blank or you need to change the amounts, you can manually enter the correct balances on the federal worksheet. Make sure the total Capital at the beginning of the year is calculated correctly. This appears at the bottom of Sch K-1 Wks.

Correcting these balances on the federal forms should update your state forms as well. In most cases, you should find the original source for numbers flowing through your return when looking to adjust/correct. You can trace this back by right-clicking the number in Forms mode and choosing "Data Source."

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