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A FINAL Schedule K-1(1065) shows withdrawal amount, leaving a small ending capital. Is this a partner liquidating or selling partnership interest?

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Level 3

The basis is clearly the initial investment $500K, but what is the selling price?  Is it the withdrawal plus the ending capital?  taxpayer is told that this is her last year in the partnership and she will not receive a K-1 next year.

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Level 15

"The basis is clearly the initial investment $500K" is incorrect. That was the basis on the day they invested.


ex-AllStar

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Level 15

"The basis is clearly the initial investment $500K" is incorrect. That was the basis on the day they invested.


ex-AllStar

View solution in original post

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Level 3
Thanks for the message.  I just did some more research.  You are correct, there are increases to decreases to the basis each year and the numbers can be found on the historical K-1 forms.  I was able to follow these instructions and came up with an final adjusted Cost basis.
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