Balance sheet

[Justin Litchfield]

I have owned a rental property for seven years and my two brothers wanted to buy a couple more so we started an LLC and bought two properties. I've always done my own taxes, I never had any problems and kind of enjoyed plugging in the numbers. I'm not a tax expert by any means but I have always had a good grasp on things. I knew we needed to do a sch k for each partner so I bought turbotax business and figured it would be a piece of cake and so far it has been fine until I got to the balance sheet. I'm a business major and it's been awhile but I understand the basics of a balance sheet so I was surprised when Turbotax told me my balance sheet is out of balance and I could not easily figure out what I'm doing wrong. Also strange that turbotax said I didn't have to have a balance sheet if I had under $1,000,000 in assets, which we don't but it is driving me crazy that it is showing out of balance.

For assests, we bought two properties totaling 450k. We did some foundation work which only the deposit went on this years taxes but added to the capital improvements. That was $2,250. Bought a stove, $426. Cash left at the end of the year $7,341. So assets total $460,017. Fine.

Then I look at my liabilities and owners equity. We put 25% down and financed 75% so at the beginning we had a mortgage of $337,500 and owners equity of 112,500. At the end of the year we owed something like 333K and we had a profit of $7,250 which turbo tax added to the owners equity, so our liabilities and owners equity then totaled $453k and showing out of balance by 7K. 

So now I'm confused because I noticed two things. One, the foundation and the stove added to the assets but didn't add to the liabilities and owners equity side, or at least TT didn't automatically put it into OE. Am I supposed to just add that in? Also we paid off about $4k of principal which would also go towards OE and TT didn't put that in the OE either, so that's where the $7K difference is coming from. 

So, how do I balance this then. There isn't an option in Turbo Tax that asks how much principal we paid. The only thing I can see is OE contributions, but we didn't really contribute anything, we just paid off part of the loan and paid a deposit on some foundation work. I didn't want to just start overriding the tax forms and plugging in my own numbers to make it work, seems like that is not supposed to work like that. 

We also had depreciation of $9k+ that TT didn't deduct from assets which I thought was also supposed to happen. Since TT calculated the depreciation, shouldn't it have automatically subtracted from assets? 

Any one with insight or a link with the info I need would be appreciated. I've tried searching the net and couldn't find a clear answer.