Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-22-2014, 06:25 PM
Junior Member
 
Join Date: Oct 2014
Posts: 1
PK

I have a Final K-1 for an LLC dissolved in 2013 with a positive Ending Capital Account.

I was a passive partner and no distribution was made to me.

I understand some partners had negative Ending Capital Account. I was also told during dissolution that the LLC was worthless.

One CPA says this is an Ordinary Loss and reported in Schedule E. The CPA who prepared the K-1 says it is my new basis and said the positive amount is a Capital Loss which makes no sense.

The amount invested was $11,633 and the Ending Capital Account is now $10,218.

I'm using Turbo Tax and the software is not useful at all.

Can someone assist?
1. If I have a positive account does the LLC owe me money? According to RUPA Section 807(b), a partner is entitled to a distribution equal to his positive capital account balance upon dissolution of the partnership.
2. Where do I enter the final Ending Capital Account $10,218?
3. If the new basis is $10,218 is negative gain zero?

Thank you



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.