The final K-1 should reflect all activity up to and including all liquidating distributions.
Make sure that the 1065 and K-1's are all marked as final.
Each partner should be maintaining a basis schedule of their investment. Once this is updated for the applicable lines on the K-1, the partner is then able to determine their overall gain or loss. This will then be reported on their 1040 Schedule D and form 8949.
*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.
