A partner is transferring his entire interest in an LLC to a new partner in the same LLC. The outgoing partner gets a final K-1. Using the K-1 worksheet, the outgoing partner's beginning capital account balance is entered as a negative number in the Other Adjustments line in the Capital column. The partner's ownership percentage is zeroed out as well. The "Final" box is checked.
For the incoming partner, the exact same capital account number is entered as a positive number in the "Other Adjustments" line in the Capital column . Yet when you look at the actual K-1's, however, the capital account balance transferred to the new partner is still showing up in the outgoing partner's K-1. On the other side, the incoming capital does not show up in the new partner's ending capital account balance.
There are no errors shown in the return. On the Cap Account and Basis Report, the totals for all partners are correct. But the ending capital accounts for the two partners do not reflect the transfer.
I have been using ProSeries for many years, and have never encountered this before.
Thank you for looking. Any help would be greatly appreciated!
I ran into the adjustments issue this weekend. I just ended up punting and overrode the software and manually entered the adjustments on the K-1s. Life is too short to call support or wait in limbo for a "future" update.
and ex marks the spot where those rocks and anvils hit me.