Thank you for your answer. Based on your explanation, my understanding is that
Cost Basis: Beginning capital + income allocations - losses + contributions - distributions.
Isn't it the same thing as Beginning Capital Account in the last K1? Doesn't the final K-1 provide a full capital account reconciliation and show cumulative basis adjustments?
Here are section L from K1s from the partnership, starting in 2020 and ending in 2024.
2020
Beginning Capital Account: 0
Capital Contributed During Year: 25000
Current Year Net Income (Loss): 0
Other Increase (Decrease): 0
Withdrawals &Distributions: 0
Ending Capital Account: 25000
2021
Beginning Capital Account: 25000
Capital Contributed During Year: 0
Current Year Net Income (Loss): 52
Other Increase (Decrease): 0
Withdrawals &Distributions: 0
Ending Capital Account: 25052
2022
Beginning Capital Account: 25052
Capital Contributed During Year: 0
Current Year Net Income (Loss): 29282
Other Increase (Decrease): 0
Withdrawals &Distributions: 54107
Ending Capital Account: 227
2023
Beginning Capital Account: 227
Capital Contributed During Year: 0
Current Year Net Income (Loss): -5
Other Increase (Decrease): 0
Withdrawals &Distributions: 203
Ending Capital Account: 19
2024 (Final K1)
Beginning Capital Account: 19
Capital Contributed During Year: 0
Current Year Net Income (Loss): 16
Other Increase (Decrease): 0
Withdrawals &Distributions: 35
Ending Capital Account: 0
What should be my cost basis? Thank you.
