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Note that a partner who left the partnership during the year should show the percentage they owned at the time they left, not zero. According to the IRS Instructions for Form 1065 K-1 at this link, and copied here:
“Generally, the amounts reported in item J are based on the partnership agreement. If your interest commenced after the beginning of the partnership's tax year, the partnership will have entered, in the Beginning column, the percentages that existed for you immediately after admission. If your interest terminated before the end of the partnership's tax year, the partnership will have entered, in the Ending column, the percentages that existed immediately before termination.” (emphasis added)
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March 7, 2020
10:25 AM
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