OK, so I find that if I go back through the partners' capital entries and indicate that each partner's entire basis was distributed as PROPERTY rather than cash, TTAX now believes I've gotten rid of all the assets and no longer asks me to enter more distributions, so that's progress. However, now on sched K line 19 it has that entire amount of distribution on 19b (distributions of other property) rather than 19a (cash and marketable securities). Is there a way to change that other than just overriding and moving the amount off 19b and onto 19a?
So I end up showing all partners still with their respective ownership percentages, and NOT saying that any of them left the partnership, but having received distributions of their entire basis so that their ending capital accounts are all zero, and the 1065 as well as all K1s show final. Which is what I think I want. I wonder how to make sure the whole thing is correct in the eyes of the IRS? Does this all sound basically right?
