sjrcpa
Level 15
04-14-2021
06:56 PM
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Departing partner's capital account gets reduced to zero. The amount needed to do that increase the other two partners capital accounts.
Did you enter the change in ownership dates? That way K-1 items get allocated according to the prorated ownership period.
Form 8308 is probably needed.
The amount paid to the departed reduces partnership capital.
There's probably more. Partnerships ain't easy.
The more I know the more I don’t know.