I'll also add a note that that the last time I checked, the Partnership program will NOT handle it correctly and give you errors for this situation. I don't know if other software can handle it well or not.
On the other hand, in my opinion every Partnership and Corporation should go to a good tax professional for AT LEAST the first year. There are way too many mistakes to be made for a first year (or last year) Partnership or Corporation, and despite their advertisements, do-it-yourself software is FAR inferior to a good tax professional.
