The capital account reflected on your K-1 should approximate your tax basis in your investment. Your capital account is calculated based on your initial investment(s) in a Company plus any allocable net income, less any net losses and/or cash distributions as reflected on your K-1 each year. You may want to keep your own running record of your cost basis in each Company for tax purposes because there are certain instances where your tax basis may differ from your capital account balance. For additional details on how to calculate your basis, please ask your tax advisor.