Several things to consider. If you had/have a negative basis, that infers either losses from the flow-through in the past, and/or capital withdrawals. Do you have suspended losses due to basis issues? Or, is the negative basis due to withdrawals etc.?
In either event, you have to report the current years income. The difference is that if you have suspended losses due to basis issues, they can be deducted up to the amount of basis increased by current income. To answer further requires knowing 1065 or 1120S and reasons for negative basis and whether or not suspended losses are present.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
