The sum of the partner's ending basis on Schedule K-1 equals the total of the partner's ending capital account on Schedule L.

Question

Quizplus · Accepted Answer

The partner's ending basis on Schedule K-1 and the ending capital account on Schedule L are calculated differently and may not necessarily equal each other. The basis includes liabilities and other adjustments, while the capital account reflects the partner's equity in the partnership.

The Sum of the Partner's Ending Basis on Schedule K-1