I got my answer - thanks. No need to respond to this post. I tried to delete it but I cannot figure out how.
My understanding is that a partner's distributive share of profits, losses, and liabilities is the weighted average of their share during the year. In other words, if they add additional capital and their share changes as a result, then the distributive share should be a weighted average of the beginning of the year share and the share after they added the additional capital. Just to clarify, the partnership owns vacation rental property and there was a loss in 2021. However, my software is dividing the loss using the beginning of the year distributive share percentage and that appears to be incorrect to me.
Thanks in advance.
My understanding is that a partner's distributive share of profits, losses, and liabilities is the weighted average of their share during the year. In other words, if they add additional capital and their share changes as a result, then the distributive share should be a weighted average of the beginning of the year share and the share after they added the additional capital. Just to clarify, the partnership owns vacation rental property and there was a loss in 2021. However, my software is dividing the loss using the beginning of the year distributive share percentage and that appears to be incorrect to me.
Thanks in advance.