I have an investor K-1 with subsequent closing interest received not included in box L, so its not included in income or capital and basis. This looks to be when an investment fund adds new partners in after the initial closing and that change in investment from initial closing to the new investor admitted is the closing interest being reallocated between partners so the end result is the new investor was in since the initial date. Does anyone know what to do on the investor 1040 with it does it belong in income and capital or just an adjustment to capital as its supposed to be a reallocation between partners made by the underlying fund.