First, enter capital totals for all partners (required):
- Go to the Input Return tab.
- On the left-side navigation menu, click on Balance Sheet, M-1, M-2.
- Select Schedule M-2 (Capital Account).
- Enter the Beginning capital, Other increases, Other decreases, Distributions, and Contributed capital in total for the partnership.
Next, specially allocate the capital amounts (optional):
- Click on the Special Allocations tab at the top of your screen.
- Locate the Amounts to Allocate list, at the left of your screen.
- Select an amount you'd like to allocate first, such as Beginning Capital.
- Allocate the amount to each partner by dollar amount or by percentage.
To quickly verify you've entered the amounts correctly, go to the Check Return tab and click on US. Select Capital Account Reconciliation.
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