b'Partnership Reporting continued from page 23and their share of recourse liabilitiesThis method is somewhat subjective inproposed methods described above.I and subtracting losses and distributions.that you are determining the partners taxwould suspect there will be changes This sounds straightforward, but if thecapital using the following steps: to the methodologies listed above and partnership has not been maintaining taxthere could be additional methodologies capital what is the best way to obtain it?a.The amount of cash that the partneravailable.The one certainty is that tax One option is to request the tax capitalwould receive upon a liquidation ofcapital will be required to be reported from each partner as it was previously theira partnership under a hypotheticalon each partners K-1 for 2020 filings.The responsibility to maintain it.How manytransaction, increased by, only question is how we arrive at the tax partners will respond to this request?Icapital number for each partner.am guessing not too many. b.The amount of tax loss that would be allocated to the partner under theIf you have a fund with a significant number One other option is that the manager orhypothetical transactions, and less of partners or has been in existence for a the practitioner can create a tax basisnumber of years it is best to discuss with schedule model in lieu of requestingc.The amount of tax gain that would beyour practitioner which approach is best information from the partner.This mayallocated. for you to meet the tax capital reporting not be practical if the partnership hasrequirement.January will be here before been in existence for several years and hasThe Modified Previously Taxed Capitalwe know it.a significant number of partners. Method requires a statement to be attached to each partners K-1 stating that Modified Previouslythis method is being used and describing Taxed Capital the method in determining the value of the partnership.A partnership that cannot satisfy the Modified Outside Basis method can use theNotice 2020-43 is requesting comments Modified Previously Taxed Capital method.from the community regarding the Page 24Fall 2020Points of Interest'