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Old 04-01-2014, 02:45 PM
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Ending Capital Accounts - Final Tax Return

Can someone please assist me with this situation?

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 very much!



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Old 04-02-2014, 03:33 AM
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Quote:
Originally Posted by LorianneHrn View Post
Can someone please assist me with this situation?

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 very much!
A capital account represents the current dollar value of your stake in the partnership. In a straightforward liquidation, the assets are sold and any gains or losses are distributed to the partners in their profit and loss sharing ratio.After the liabilities have been paid in full, any remaining cash balance is equal to the credit balances in the partners’ capital accounts. The cash is then distributed



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