My apologies @Rick19744 for misconstruing your reference to corporations as partnerships. I've been reading so many discussions looking for relevant information I must have missed that.
I believe I understand what you are saying.
The Partnership LLC liquidating distributions will be reported on the 1065 Sch K and on Line 19 of the K-1s, and I'm assuming that the tax basis for each partner remains at its positive balance. Then the tax application will be addressed through Form 8949 and the 1040 Sch D where each partner's positive cost basis will cover the liquidating distribution. Is that correct?
On a related point, with the distributions liquidating the partnership's accounts, the Sch M-2 will show a zero balance at the "end of the year" as will each of the Balance Sheet line amounts. Is that correct?
