Schedules L, M-1, and M-2 are not required if the partnership meets all four of the following conditions:

• The partnership’s total receipts for the tax year were less than $250,000.
• The partnership’s total assets at the end of the tax year were less than $1 million.
• Schedule K-1s are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
• The partnership is not filing and is not required to file Schedule M-3.

Even if the balance sheet (Schedule L) is not required for federal purposes, the information will transfer to those state returns that do require the information.

To use the Online version of TaxAct to print these schedules even when they're not required:

1. From within your TaxAct 1065 return, click Federal in the left navigation bar
2. On the Federal Quick Q&A Topics screen, click Partners' Capital Account & Percentages
3. On the Good News. The Capital Account Analysis and Balance Sheet are Optional screen, select Review capital account analysis, then click Continue
4. On the Let's start with entering each partner's beginning capital account screen, enter the relevant figures for each partner's Beginning capital account field, then click Continue
5. On the Enter any contributions made by each partner during the year screen, enter for each partner the relevant figures in the Cash contribution and Property contribution fields, then click Continue
6. Respond Yes or No, as appropriate, to any questions about the partners' property contributions, then click Continue
7. On the Enter any distributions of capital to the partners from the last year screen, enter for each partner the relevant figures in the Cash contribution and Property contribution fields, then click Continue
8. On the The IRS needs a few more details screen, respond Yes or No, as appropriate, to any additional questions, then click Continue. Schedules L, M-1, and M-2 will now be included with any printed copies of your 1065 return.

Once you've completed these steps, you may also complete a balance sheet for your partnership by following these steps:

1. From within your TaxAct 1065 return, click Federal in the left navigation bar, then click Balance Sheet per Books on the Federal Quick Q&A Topics screen
2. Follow the prompts to answer all questions

To use the Desktop version of TaxAct to print these schedules even when they're not required:

1. Sign in to your Desktop version of TaxAct, then open the relevant return
2. Click Federal Forms > Schedule B
3. Scroll down to Question 4. In the outlined area, check the box for I would like to print these schedules even though they're not required. Schedules L, M-1, and M-2 will now be included with any printed copies of your 1065 return.