Problem: After the transfer, ending capital of transferred out partner had negative amounts.
Solution:
When there is a transfer of interest entered in the return, the Allocation Option for ‘Time’ must be set to Effective. This was currently set to Ending which was causing the issue. If you change the Allocation Option for ‘Time’ to Effective, then the Schedule K-1 ending capital will show blank. The option is within Organizer > Partner Information > Allocations > Allocation Options.
Please note this is mandatory when transfers of interest are entered.
