Question
Partnership distribution in excess of basis
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?
