Final partnership return - ending capital accounts

[LorianneH]

I have a final partnership tax return where the partners have positive balances in the ending capital accounts. But since schedules L, M1 and M2 don't have to be completed because of answering "Yes" to question 6 on Schedule B, Schedule L is then blank on the K-1s. How should this be handled to show that there are positive balances in the capital accounts?

If I choose to have Schedules L, M1 and M2, then the balance sheet will not balance since everything else has been zeroed out. Thanks.

[LorianneH]

Can anyone please help?

[Lion EA]

To help move this up for you...

I have prepared very few dissolutions. I do prefer to have a balance sheet, even when not required, to keep it up-to-date and ready for that eventual sale. (I do not always transmit it with the return.) Then, as everything is distributed the final balance sheet will have zeros. The last time I dissolved a partnership, I had the beginning BS and then prepared the BS as it would've been immediately before the sale of the partners' interests/as if there were no dissolution for my own calculations of what was being distributed and finally had the ending balance sheet for the tax return with zeros.

Hopefully, an accountant can jump in here to help you balance your balance sheet.

[jasdlm]

You can go into the 'input' field of the K1 (or maybe it's 'Global Allocation) and there is a place where you can select for the K1 to show the capital account calculations.