Thanks Robert. A couple of points/clarifications.
1 - the WA used by turbotax is assuming an even split of P&L througout the year. The redemption amount and timing was based on figures as of 9/30. In Q4 the company experienced a loss, lowering total net income. Therefore the WA calculation is in appropriately allocating Q4 losses to the partners which would mean the buyout amount was greater than their capital balance - instead of netting to zero. Seems this is a limitation of TT to not enter in the income as-of the sales date to account for this.
2 - the company has not made the final payment to partners. The agreed upon redemption amount WILL bring capital account to zero; but not until 2025 when the final installment payment was made. As of 10/1/2024 they are no longer partners or receiving P&L allocation; however, at 12/31/24 they still have a balance in their capital account.
