The clients parents made them a partner in the K1 so they did not personally invest anything into it, in prior years this box is checked. It looks like this client is being transferred ownership % each year per the K1 worksheets. I suppose I should investigate further to confirm.

This K1 is meant to be a tax shelter for them and create losses in the early years that will (or should - according to clients dad) more than offset income in future years.