So for instance, each partner contributes $5000 basis for equal 50/50 split of partnership. Add 50% share of $50,000 income is $5,000 + $25,000 = $30,000 each.
Minus distributions taken of $5000/$3000 each.
30,000 - 5,000 = 25,000
30,000 - 3,000 = 27,000
25,000 + 27,000 = 52,000
25,000/52,000 = 48%
27,000/52,000 = 52%
So their new partnership at the end of the year is 52/48. is this the differnece in their capital account or in ownership? TT is not letting me change the percentage for the end of the year.
