final 1065 return

[grandmabee]

I am doing a partner. I asked for to see the 1065 because their capital account on the k-1 showed negative.

I thought on final 1065 the balance sheet should be zero. they have figures in all of it just like its still open. money in the bank inventory notes payble etc. Is my thinking wrong?

[Terry D EA]

One question here, is the 1065 marked as the final return? It sounds as though you did not prepare the 1065 but just the one partner. Go with the figures on the k-1. I would think as well that when the partnership is no longer a partnership that the partners capital accounts should be zero and all assets either sold, or converted to personal use. However, in your situation, they may be winding up business and will file the final return next year if the return for 2010 is not marked final.

[grandmabee]

One question here, is the 1065 marked as the final return? It sounds as though you did not prepare the 1065 but just the one partner. Go with the figures on the k-1. I would think as well that when the partnership is no longer a partnership that the partners capital accounts should be zero and all assets either sold, or converted to personal use. However, in your situation, they may be winding up business and will file the final return next year if the return for 2010 is not marked final.

yes I only do one partner. the 1065 is marked final and all k-1's are marked final also. that is what surprised me. when I close out a partnership return I have all zeros