Final 1065 shows a loss. Enough basis to be able to deduct on tax return. However, cash received is more than remaining basis by $500. Plus some equipment received. Equipment will get zero basis. I assume the gain will be a taxable gain on the 1040?
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Equipment
Gabriele, did any partner originally contribute the equipment? If so, is the same partner receiving the equipment back?? -
Ron, Thanks so much for responding. All the equipment was purchased. After I posted the question I ran into another confusion. In zeroing out the balance sheet the distributions now include the book values of the assets. So my basis worksheet shows that the loss from the business is greater than the remaining basis.
I think I have to deal with the K-1 loss first and then deal with the liquidating distributions. Net effect is the same but reporting is different.Comment
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