A few additional comments:
- Keep in mind, that the 1065 and K-1 reporting are tied to the entity activity. Partnerships and LLC's taxed as a partnership can certainly have ST and LT gains and losses. Those would be reported on lines 8 and 9a.
- The members basis at this point has no bearing on what you are reporting at the 1065 level. Once again, this is entity level reporting.
- Once each LLC member receives their K-1, this information will be reported on their respective 1040.
- Finally, each member will need to adjust their tax basis for the final K-1 activity. At that point, each member will then determine whether they have a capital gain or loss on the liquidation.
*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.
