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Hi and welcome to Just Answer!Your understanding is correct - because the partner provided the "use" of the property - he/she might receive attributable part of the partnership income.But partner's capital account will not be affected.
Thanks, XXXXX XXXXX that's all that partner contributed their capital account would be zero?
provided there were no profits for the year
Yes - capital account will be zero. But distribution of profit or loss would be based on partnership agreement.I suggest this document - http://www.irs.gov/Businesses/Partnerships/Partnership---Audit-Technique-Guide---Chapter-1---Basic-Principles-(Rev.-3-2008)
and the item j capital line reflects the capital accounts?
item J on which form?
K-1 item j capital %
Yes - capital account - as you see profit share and capital share could be different.