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wellcraft
New Member

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

I have been receiving K-1 every year but the profit is nowhere near the investment. I am loosing in excess of 10000.00

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Accepted Solutions
Rick19744
Level 12

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

As a partner in a partnership, you should be tracking your basis in this investment.  This begins with your capital contribution and is adjusted each year by the applicable lines on the K-1.

Once you receive your final K-1, you will adjust your basis.  Only when you have done this will you be able to determine your final gain or loss.

If your liquidating distribution exceeds your basis, causing a "negative" basis, you will have a gain to the extent of this negative amount (essentially putting you to zero).  If you still have basis after subtracting your liquidating distribution, then you will have a capital loss to the extent of your remaining basis.

See the attached IRS commentary on adjusting your basis:

https://www.irs.gov/instructions/i1065sk1/ch01.html

*A reminder that posts in a forum such as this do not constitute tax advice.*

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5 Replies
Rick19744
Level 12

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

As a partner in a partnership, you should be tracking your basis in this investment.  This begins with your capital contribution and is adjusted each year by the applicable lines on the K-1.

Once you receive your final K-1, you will adjust your basis.  Only when you have done this will you be able to determine your final gain or loss.

If your liquidating distribution exceeds your basis, causing a "negative" basis, you will have a gain to the extent of this negative amount (essentially putting you to zero).  If you still have basis after subtracting your liquidating distribution, then you will have a capital loss to the extent of your remaining basis.

See the attached IRS commentary on adjusting your basis:

https://www.irs.gov/instructions/i1065sk1/ch01.html

*A reminder that posts in a forum such as this do not constitute tax advice.*
wellcraft
New Member

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

Thank you very much exactly what I needed to know. Appreciate it very much!!
Rick19744
Level 12

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

You're welcome.
*A reminder that posts in a forum such as this do not constitute tax advice.*
allgr8
Level 2

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

I understand this answer, and thank you, but where in TurboTax would we enter the final gain/loss?  I don't want to alter my K-1 in TurboTax to differ from the one I received, but that seems to be the only way to include it in my TurboTax return.

@Rick19744 @wellcraft 

allgr8
Level 2

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

Never mind.  I found the answer in another post.  Form 8949.

@wellcraft @Rick19744 

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