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Old 10-22-2014, 06:25 PM
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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



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