Kathy17
Level 1
10-12-2021
12:51 PM
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I have a client with a negative ending capital account in 2019. Let's say $10,000. In July 2020 he gets a distribution of $2,000 which "buys" him out and his share of the company goes to 0. He is no longer a partner. Where does the buyout of $2,000 go. I am assuming that in the Schedule 1 Worksheet for the partner, I change the ending percentage to 0 and checked the box that underneath that about the decrease.
Thanks.
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Intuit_Matt B
Employee
10-12-2021
12:56 PM
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Any disposition information concerning the partner's share can be entered on the Schedule K-1 Partnership Additional Information Worksheet. You can get there by clicking the Quickzoom in the Final/Amended section on Schedule K-1.
