@qbteachmt There is no distribution. The partnership interest is worth -0- now and in fact no longer exists.  Taxpayer must have had a self-directed IRA that allowed for investment in a partnership. When a nonpublicly traded IRA investment goes belly up, the IRA custodian reports it as a distribution at the last known amount - usually cost. I don't know why.

Good luck with this. I would enter Taxable amount as -0- and attach an explanation. Prepare for notices. I had a situation just like this. It took several years to resolve, during which IRS levied taxpayer's bank account. I had been working with IRS and then Taxpayer Advocate. Taxpayer eventually had to go to his Congressional Representative's office.

The only pass through single member LLC would be one that has elected to be an S Corporation. I don't think that's what you mean. And a rental property is not an LLC. Is this what you have? Rental property owned by individual for 1st 10 months of the year. Then individual transfers ownership to an LLC he set up. He is the only owner and the LLC is disregarded for income tax purposes.   If yes, you show the entire year rental activity on Schedule E like you always did.