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10 partners in partnership - 4 partners receive distributions in excess of basis so 4 partners have capital gain distributions - in Proseries we report capital gain distributions for the 4 partners on schedule D and on schedule K line 9a with a special allocation code and on the 4 partners' schedule K-1s as capital gain. Is that correct?
The distributions in excess of basis for the 4 partners reduces the capital accounts of all 10 partners in proseries - is that correct?
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There is nowhere on a 1065 or the K-1s to report distributions in excess of basis.
The partners report on their tax returns as a capital gain.
Since I'm also nice, I will put a note on the K-1 saying you appear to have distributions in excess of basis. Consult your tax advisor.
The more I know the more I don’t know.
