Partnership liquidation

[cpaJA8]

I just received a Final K-1 (1065) for a client. Twenty years ago, 5 partners inherited land (DOD value was 200K) that they contributed to form a partnership (20% each = 40K). So, they were all equal partners and they had the same initial basis. The land was sold in 2022 for a total of 3.25M, my client received 650K (his 20%), and partnership liquidated. 

Line L on his Schedule K-1 (Form 1065): Beginning Capital = 150K

Current year net income = 550K .  Distributions <650K>  Ending capital = 50K.

The only other figures on the K1 are Box 10 (section 1231 gain) = 550K and Box 19 (distrib) = 650K. 

The CPA that completed the partnership return said my client's inside basis can be found on Line L of the K1 and that would carry to his outside basis calculations.  And he should be able to recognize a loss for any remaining basis after the liquidating distribution. 

So, would his basis be 150K?  He reports an ordinary gain of 550K (per the K-1) and then reports a capital loss of 50K (the amount of capital left after the liquidation is complete)?  His capital account includes his initial basis of 40K, correct?  Am I overthinking this?

[sjrcpa]

The partnership reported the gain on the sale of the land as ordinary?

[cpaJA8]

I typed it wrong.  No, the partnership reported the gain on the sale of land as LTCG, not subject to Net Investment Tax.

Does the rest of my situation make sense?  Is my thinking on the basis correct?

[cpaJA8]

Bump