Drake Tax - 1065 - Negative Tax Basis Capital Account Information

If the partnership reports the “Partner’s capital account analysis” in the “L” section of Schedule K-1 using a basis other than "Tax basis," and the capital balance reported on any partner's Schedule K-1 at the beginning or end of the tax year is a negative number, then the partnership must report on line 20 of Schedule K-1 – using code “AH” – each partner's beginning and ending shares of tax basis capital. This is in addition to the capital information reported in item L of Schedule K-1.

In Drake Tax,

1. Return to screen K and click the Other information cont'd. tab.

2. Click the Other link under the AH Other Information line, at the bottom of the screen.

3. Enter a description and total amount to be reported.

   • Use the SA link to allocate amounts to the appropriate partner's Schedule K-1, line 20.