1065 - Entering Partner Capital Accounts

Where do I enter partner capital account amounts? Do they flow to lines 1 and 2 of Schedule M-2?

Partner capital account amounts are entered in section L, Analysis of Capital Account, of the K1 screen, including the beginning capital account amount and capital contributed during the year. These amounts flow to Schedule M-2.

For example,

  • an amount entered as the Beginning capital account amount flows to line 1 of Schedule M2.  
  • an amount entered under Capital contributed during the year as Cash contributed will flow to line 2a of Schedule M2.  
  • an amount entered under Capital contributed during the year as Adjusted basis of property contributed will flow to line 2b of Schedule M2.  

Each line displays the total amount for all partners.