COGS adjustment for partnership liquidatingdistribution inventoru
Am liquidating a partnership. Distributions of cash, remaining inventory, and depreciated items to partners. COG decreased to 0. Cash, fmv of inventory and fmv of depreciated items entered to be subtracted from partner accounts. Decreasing COG to 0 shows an income loss, when there was actually a profit BEFORE distribution of remaining inventory. The income loss also forces the partner accounts negative. I tried listing the fmv of the remaining inventory and depreciable items as other income as someone suggested you should pretend the 2 distributions should be considered a sale to partners and this seems to result in the correct profit on inventory made during the year with the associated COGS on those items. Is this the correct way to handle this or is there a different place that these should be entered in turbotax to reconcile the COGS.