Parnter Capital - Enter current year activity or life to date.

Forum|Forum|3 years ago
March 6, 2023
1 reply
0 views

2021 was the first year of the partnership.

I entered the cash and property contributions along with cash distributions for 2021.

I am now working on the 1065 for the 2022 tax year.

Under the Partner Capital section, do I entered YTD information on the capital accounts or life to date?

I am assuming since the opening balances were entered in 2021, they are just asking for current year changes in Partner Capital but it is unclear.

Please advise. Thank you

TurboTax Business Windows

GeorgeM777

Maybe. The Beginning Partner Capital Account box (in TurboTax Business) should contain the partner's capital account as of the last day of 2021. The capital account amount is basically carried over from the end of 2021. The partner's capital account will fluctuate during the year depending on the amount of contributions/distributions.

During 2022, whatever cash or property the partner contributed to the partnership is entered in the appropriate boxes. Additionally, if there were cash distributions and/or property distributions paid out to the partner during 2022, then enter those amounts as well.

Just an fyi, if you enter a capital account amount for the partner, and later determine that you need to edit the capital account amount, before making the edit, you will need to first delete the partner from the Partner Summary screen, and then re-enter the partner information. If you were to select Edit next to the partner's name in the Partner Summary section, when you get to the Partner Capital screen you will not see the box for the partner's capital account. However, deleting the partner from the Partner Summary screen, and then re-entering the partner information, will give you the option to re-enter the partner's capital account information.

@Runcynthia69

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"