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1065 K-1 Entry

Kathy17
Level 1

I have a client with a negative ending capital account in 2019.  Let's say $10,000.  In July 2020 he gets a distribution of $2,000 which "buys" him out and his share of the company goes to 0.  He is no longer a partner.  Where does the buyout of $2,000 go.  I am assuming that in the Schedule 1 Worksheet for the partner, I change the ending percentage to 0 and checked the box that underneath that about the decrease.

Thanks.

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Matt B
Employee
Employee

Any disposition information concerning the partner's share can be entered on the Schedule K-1 Partnership Additional Information Worksheet. You can get there by clicking the Quickzoom in the Final/Amended section on Schedule K-1.

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Matt B
Employee
Employee

Any disposition information concerning the partner's share can be entered on the Schedule K-1 Partnership Additional Information Worksheet. You can get there by clicking the Quickzoom in the Final/Amended section on Schedule K-1.

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