How to answer "how you disposed of this partnership" question after redeeming interest from a partnership?

Forum|Forum|7 years ago
June 4, 2019
2 replies
30 views

I was an limited partner in a partnership that invests in stock markets like a hedge fund. I redeemed my interest in 2018 and received cash payments of my final account value. The partnership still exists but I am no longer part of it. In TurboTax I checked "This partnership ended in 2018" and 'Disposed of a portion of my interest in partnership during 2018". Is it correct? TT then asks to describe the partnership disposal. Options are"No entry", "Complete disposition", "Disposition was not via a sale", "Sold and am receiving payments". Which one shall I choose?

TurboTax Premier Windows

Rick19744

Level 13

Responses to your questions:

You had a complete disposition.
Once you check this, TT will ask for additional information. You will need to be able to provide your sales proceeds amount and your tax basis. TT will then compute your overall gain or loss on this investment.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

haol629Author

Level 2

I had carryover loss from pervious years with this partnership. With complete disposition, TT is deducting the entire loss, and showing it as selling business property. Is this expected?