I’m preparing the final tax return for a partnership with 3 partners. I have 2 questions I’m hoping someone can give me guidance on how to report these items on the final return.

Facts: 2 of the partners have a positive ending capital balance and 1 has a negative ending capital balance. They all net to the correct reported ending balance on the balance sheet. The partner with the negative balance apparently, over the years, made withdrawals through his capital account at a higher % than his P&L %.

QI: How do I treat these ending balance on the final return? My thinking is to just attach a statement telling them their ending balances may be deducted as a capital loss (positive balance) or reported as a capital gain (negative balance).

Q2: How do I deduct my cost to prepare the final tax return when the partners will have to contribute monies to pay my fee after the year end. I can book the payable but how should I record their contributions after year end to net zero out the ending capital accounts?