partnership question

[michaelmars]

just looking for consensus or best practices. If partners contribute capital and then take a distribution in the same year [assuming the same partners, percentages etc] do you show the in and out on the tax return or do you net the amount?

[mcb39]

I show the in and out.

[kcjenkins]

I show the in and out so that if questioned it tracks with the paper trail.

[Terry D EA]

I agree with both KC and mcb39. I show both the in and out for the same purposes. Maybe I am a little anal about tracking the partnership basis, but I attach a worksheet to their individual K-1's that shows both outside basis and capital. That way there are no questions.

[jklcpa]

I report both.

[michaelmars]

THANKS, ALL I tend to agree but then you get the calls from some partners that complain, I didn't get money I put money in during the year. they just care about the net.

[Terry D EA]

>>>I didn't get money I put money in during the year.<<< I am waiting to hear from one partner this to contact me when he sees the reduction in his capital account due to the loss in revenue this year. They enjoy the loss on their individual returns but don't come close to understanding why the capital is reduced.