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Tax Law (Questions About Taxes)/K-1 (1065)
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Question
I have a few questions in filling out Schedule K-1 (1065):
Part II L: Partner's capital account.
beginning capital account: Would this be what is in the checking account for our management LLC at beginning of year?
Ending Cap account: " " at end of year.
Is it that simple?
If 2 members in the partnership (my wife and I) the amount would be divided by 2.
Do I check Tax basis or ?
Thanks
Jeff
Jeff,
Thanks for your question.
The cash account is an asset. The capital balance is the amount invested in the company by the owners. Back to day one of accounting: Assets - Liabilities = Owner's Capital
Hope this helps.
John Stancil,CPA
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John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.
Organizations
AICPA, FICPA, IMA, NATP
Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.
Education/Credentials
DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
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