Announcement

Collapse
No announcement yet.

Schedule M2 Partners Capital Account

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Schedule M2 Partners Capital Account

    Working on two partner LLC, which owns a rental property that has mortgage. Each partner contributed cash and took a loan out (under personal name) and created a LLC. My questions is where does the principal amount paid on the mortgage goes on 1065? My schedule L is off by the amount of principal that has been paid off plus depreciation taken. I have deducted the rental expenses, depreciation and interest paid, but my balance sheet is still off. Each year partner's adjusted basis is being reduced.

    Maybe I am looking too much into something....?

    #2
    The amount shown for liability on Sch L should be the amount of principal remainingat the end of the year after payments have been applied. From what you are telling me, I believe this is the cause of the problem.

    Comment


      #3
      Assets and mortgage liability everything is being shown on the Balance Sheet, Schedule L including capital account.

      Comment


        #4
        Originally posted by sami View Post
        Assets and mortgage liability everything is being shown on the Balance Sheet, Schedule L including capital account.
        Did you make any book and/or tax adjustments?
        Always cite your source for support to defend your opinion

        Comment

        Working...
        X