Rick: I appreciate your follow-ups. I'll try to explain my comments.
@Rick19744 wrote:
- Not sure what you mean by "I'm assuming the tax basis for each partner remains at its positive balance".
- Each member should be maintaining a tax basis schedule. This schedule will be updated for the applicable items on the final K-1 EXCEPT for any liquidating distribution.
I was referencing the "Partners Capital Account Analysis" that is on the K-1 (Line L), but since going back into TT and entering the liquidating distributions for each partner (as a cash distribution), Line L on the K-1s now has an "Ending Capital Account" of zero, not a positive balance as it was prior to entering the cash distributions.
Each member is maintaining a tax basis schedule, so they will update theirs with the 2022 items except for the liquidating distribution and determine the tax implications on their own 1040s.
Thanks for the confirmation on the Balance Sheet. You've helped me a great deal.
