Buyout results in negative ending partner capital

[Rick19744]

this amount you are talking about can only be determined if this individual maintained an accurate basis schedule since inception.  They will need to determine this completely separate from the LLC.

[yesenia-celestin]

I have a similar situation except that the buyout includes money and distribution of an entity held asset.  Can I do the same thing?  Except of course, distribute the asset too by disposing of it in the assets section with no profit?

[Rick19744]

Yes, although your facts are pretty limited.
If you have follow up questions, it would be better to start your own post.

[DrPhibes]

A nicely done concise treatment on 754.  My question is how to account in the balance sheet and such if the partnership (3 others in a 4 person partnership) are buying 1 out using excess cash sitting in the partnership made in payments over several years?   What paperwork would be issued to the bought out partner in each of the years?  We will be doing 754 treatment, luckily there are only a few assets, an expensive commercial building and an automobile, no loans.