How to determine partnership basis from K1

Forum|Forum|6 years ago
September 22, 2019
5 replies
58 views

If we sold the business owned by the partnership at a loss, where on the K1 would I find the numbers to determine partnership basis requested in TurboTax? Is it from the L Box, which the accountant checked as "tax basis"? If so, is it the ending capital account number? Or something else? I'm really confused. Why doesn't TurboTax tell me where to get this number?

Hi Palms

Level 7

https://ttlc.intuit.com/community/taxes/discussion/re-k-1-disposition-of-partnership-interest/01/854514#M334431

Anonymous

are you saying the partnership owned a business which it sold or the partnership itself was the business that was sold..

please respond back in this thread so that we can understand what took place.

sniedAuthor

Level 2

The partnership owned a business that was sold and then the entity was dissolved.

Rick19744

Level 13

In addition to responding to @12309 question, it would be good to know the following:

What type of business entity was owned
How long was it owned
How did you handle the purchase on your books and records
How did you handle any annual updates to your books and records; this will depend on what type of business entity was owned
How was it sold; stock, assets?

*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.

sniedAuthor

Level 2

Here is a response to your questions:

1. The partnership owned a business which was run by an LLC. The partnership was me and my husband.

2. 15 years

3. The partnership was formed in order to do business. We invested capital in the LLC.

4. An accountant filed a tax return yearly for the LLC.

5. The accounts and tools were sold to a third party and the LLC had no other assets. Everything, including liabilities, was transferred to the partners and the LLC filed its final tax return.