On the withdrawal report, you will see a listing for Tax Basis prior to withdrawal; this is the member's cost basis before any gains or losses are counted for the year.
Then there is the Current Year Earnings/Loss; this is the total of any capital gains/losses, income, expenses, etc. This figure is detailed on the K-1, and is the member's share of gains or losses that happened as part of the club's business during the year. These gains or losses are something most tax programs should ask you to fill in if you indicate that you received a K-1 during the year.
When added together, the Tax Basis Prior to withdrawal and Current Year Earnings/loss, form the member's Adjusted Tax Basis. This is their final cost basis on leaving the club.
The difference between the Adjusted Tax Basis and the Cash Received, is the Realized Gain / loss. This figure, positive or negative, must also be claimed on the member's individual tax forms.
The information about the withdrawal that does not show up on the K-1, will be entered on a form 8949, by the member.
Include any other transactions that generated a LT gain for which you received NO 1099 on other lines of this 8949. Report the sums of columns d, e, g and h from this 8949 on line 10 of Schedule D.