If a partnership return requires Schedules L, M-1, and M-2 due to not satisfying the four conditions on Schedule B line 4, in addition to printing those schedules the partner's capital account analysis, Item L on each partner's Schedule K-1, will also print.
However, if the partnership return meets the four requirements that preclude needing Schedules L, M-1, and M-2, then the partner's capital account analysis will not print on each K-1 since it also isn't needed. However, if you're keeping track of each partner's capital account and wish this information to print on each partner's K-1, you can specify that you want it to print.
To print the partner's capital account analysis on each partner's Schedule K-1, from the Main Menu of the partnership return (Form 1065) select:
- Schedule B - Other Information
- Print Schedule K-1 Section L? - Change to YES.