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When filing a final partnership tax return does it matter if…

When filing a final partnership...
When filing a final partnership tax return does it matter if the ending equity balance of each individual partner is not zero? Basically they total 0 when combined but some partners are positive and other others are negative.Example
Partner 1-100
Partner 2 50
Partner 3 -75
Partner 4 -75
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Answered in 50 minutes by:
3/14/2018
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,123
Experience: 35 years tax experience, including four years at a Big 4 firm.
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This is how it often is. Some partners take draws, others add capital, there can be many reasons.

I like to present final 1065 returns that way. It gives IRS and your partners a base to determine gain or loss on liquidation.

Thanks for asking at Just Answer. Positive feedback is appreciated. Five stars is best. I'm PDtax.

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,123
Experience: 35 years tax experience, including four years at a Big 4 firm.
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