The liquidation of a partner’s entire partnership interest can take various forms, including payment made by the partnership to the retiring partner in complete redemption of the partner’s interest or a sale of such interest to the remaining partners. In both circumstances, the retiring partner receives cash or property in exchange for his partnership interest and the remaining partners proportionately increase their share in the assets of the partnership. In your case, since it is only you, the entire "interest in the assets of the partnership" ($27,900) gets distributed to the partner(s) (you) and it is as simple as that. The K1 generated for you will show the calculation of the disillusion of the partnership and the remaining will be "taxable" to you.
