LLC started in 2015. No property was contributed. Service industry. Tax basis with zero capital account to start. Capital account went negative in 2017 and 2020 entity is closed on 12-31-20. Final K1 will have $29020 as negative capital account. No ordinary income this last year from LLC.
I was playing with TurboTax on the K1 entries and I do not see how to put the negative capital account in TurboTax. I’ve been told that this would be treated as capital gain.
