You need to do what I explained previously. You need to reverse the $90,000 entry you made as discussed in your facts. That should leave $60,000 in the capital account of the old member. You then need to make an entry to eliminate that $60,000. You will reduce the old member capital account by the $60,000 and do this on the other increase of decrease line of Schedule K-1 Line L. You will then add this to your capital account on the same line. This should net to zero and no impact. Just a reclassification due to the buyout of the member.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
