A couple of comments:
- Based on your facts, that means your prior year form 7203 is incorrect.
- Adjusting the beginning of the year to what it should be could lead to an IRS notice because prior year ending does not match current year beginning.
- Hopefully if you adjust prior year form 7203 line 6 for the $50,000 you still have basis?
- Additionally, what was reflected on the prior year Sch M-2 column (a) line 7? Did this reflect your distribution?
*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.
