Jump to content
ATX Community

Reconciling capital account


ILLMAS

Recommended Posts

Hopefully someone can shed some light and see If we have a problem here:

Balance sheet

Capital Account  2017 was -500,000

Partner A ending was -200,000 40%

Partner B ending was -100,000 20%

Partner C ending was -50,000 10%

D and E was -150,000 15% and 15%

Totaling -500,000 which matches to balance capital account 

Partner D and E walked away in 2017 and they were issued a final K-1 (no sale)

In 2018 the partnership had a loss of 200,000 so the capital account increased to -700,000

Partner C sold their interest to A & B so 10% was split between A & B and ownership % was adjusted.

Capital Account  2018 was -700,000

Partner A ending was -350,000 75%

Partner B ending was -150,000 25%

Partner C ending was -50,000 0% final k-1

Total ending capital of -$550,000, so I have a difference capital account-ending partners capital = -150,000 (D & E ending capital) My question is, does the partners ending capital account has to match the balance capital account?

In 2019 the difference is now the sum of partners C, D & E = -200,000, it seems the tax program does not transfer the amounts after a K-1 is marked final and that ending capital is lost.  I only have one 1065 client with positive capital account, so this is a new one for me, I was given a copies of prior years so I was able to trace things back.  If it doesn’t matter if they don’t have to match, them I am okay.

Thank you 

MAS

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...