Thank you all for your good input. Laying on the couch last night, the light bulb finally came on. At closing, there was enough money to pay back initial investments and disburse profits since there were no debts. So no one has a loss on liquidation and the final taxable income is as it should be. My client was adamant that he never got his investment back. That may be true, but if it is, it's an internal problem with the LLC, not a head scratcher tax problem. I knew it was simple, I was just stuck for a while. I think this account deserves a 20% aggravation surcharge fee this year!  

Thanks again to all and Happy 4th!