KarenAnn
Level 1

When you debit the 200k receivable to the balance sheet the credit will either increase net income or decrease a net loss.   Therefore the 200k increase in income will in effect add to the basis of each partner in 2020 if you are amending that year.  When the partnership receives the refund you will debit cash and credit the receivable.   You can then distribute to the partners.  IMHO.

Karen

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