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jmdeal
New Member

Can I report a capital loss on my return from a limited partnership investment that went into receivership and has been dissolved?

 
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Accepted Solutions
PatriciaV
Expert Alumni

Can I report a capital loss on my return from a limited partnership investment that went into receivership and has been dissolved?

Yes, if you received Schedule K-1 marked "Final," you may report that the partnership dissolved. Then report a "sale" for zero dollars to write off your remaining basis plus any suspended losses or passive losses carried forward. 

Be sure you edit the partnership information under the Schedule K-1 topic and mark that the partnership ended. The program will then ask you how you disposed of the investment (disposition not via sale).

Also check the boxes for passive activity losses carried over from last year and/or at-risk losses from last year. This will prompt the program to ask for the amount of losses in each category and calculate the amount that can be used on your current return. 

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1 Reply
PatriciaV
Expert Alumni

Can I report a capital loss on my return from a limited partnership investment that went into receivership and has been dissolved?

Yes, if you received Schedule K-1 marked "Final," you may report that the partnership dissolved. Then report a "sale" for zero dollars to write off your remaining basis plus any suspended losses or passive losses carried forward. 

Be sure you edit the partnership information under the Schedule K-1 topic and mark that the partnership ended. The program will then ask you how you disposed of the investment (disposition not via sale).

Also check the boxes for passive activity losses carried over from last year and/or at-risk losses from last year. This will prompt the program to ask for the amount of losses in each category and calculate the amount that can be used on your current return. 

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