Ok thanks.
The instructions I provided were from the IRS Partner's Instructions for Schedule K-1 (Form 1065). My specific K-1 does not have that note as well.
I have convinced myself that I too don't need to do anything. As noted in my original email, the (L) Ending Capital Account is not as high as it *could* be because the amount has been reduced by the amount in 18C. Basically if I started out with $5k and earned $500, my ending capital account would be $5500. However it's only worth $5350 because the amount in 18C ($150) is an expense that wasn't deductible.
It just seems odd that 18C even exists. I wonder who would/could need to do something with that amount that isn't already accounted for in their box L capital accounts.
The instructions I provided were from the IRS Partner's Instructions for Schedule K-1 (Form 1065). My specific K-1 does not have that note as well.
I have convinced myself that I too don't need to do anything. As noted in my original email, the (L) Ending Capital Account is not as high as it *could* be because the amount has been reduced by the amount in 18C. Basically if I started out with $5k and earned $500, my ending capital account would be $5500. However it's only worth $5350 because the amount in 18C ($150) is an expense that wasn't deductible.
It just seems odd that 18C even exists. I wonder who would/could need to do something with that amount that isn't already accounted for in their box L capital accounts.
Statistics: Posted by jaj2276 — Wed Jul 10, 2024 10:31 am — Replies 2 — Views 288