I am filing a final return for an LLC that was closed during tax year 2015. Initially, three members contributed $5000 each into their capital accounts and the total 15K was spent on administrative type expenses while we explored the potential for the business opportunity. There has never been any income to report and the LLC holds no assets.
Question: How do I reflect the capital accounts on the final return? Should each K1 continue to reflect the members cash that they can claim as a loss individually, or does the loss need to be reflected by resetting the capital accounts to zero on the final 1065?
