The sum of the partners' ending basis amounts equals the partners' ending capital account balances. These amounts are shown on the partnership's Schedule K.

Question

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The partners' ending basis amounts and the partners' ending capital account balances do not necessarily equal each other. The ending capital account balances are shown on the partnership's Schedule K-1, not Schedule K, and represent the partners' equity in the partnership. The partners' basis, however, includes their capital account balance along with adjustments for additional contributions, share of partnership debt, and distributions, which may not be reflected in the capital account balances.

The Sum of the Partners' Ending Basis Amounts Equals the Partners