How do I show the loss? My K-1 partnership is worthless.

[larryuebner15322]

My K-1 investment is worthless.  I received no K-1 form for 2015.  I received a letter from the attorney that the investment is worthless.  How do I report it if I received no K-1

[DDollar · Accepted solution]

You can report this Loss on your personal tax return. You will enter this under the Investment Income area of Wages & Income.

1. Choose Personal >> Wages and Income, then I’ll Choose What I Work On.
2. Investment Income >> Stocks, Mutual Funds >> Start/Update.
3. Type of Investment: Everything Else
4. Enter a description, Net Proceeds = $0 and date of sale = dissolution date (or you can use the date of the letter).
5. Acquired: Other method
6. Cost Basis: your investment basis at dissolution
   
7. Date of Acquisition: date you made your investment

TurboTax will calculate the loss on this investment and determine if it was short- or long-term. If you have other capital gains, the loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Form 1040 and offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income).

[raovikas22]

After doing this do we need to add K1 also? There was some income before dissolution. I received K1 for that.Do I need to report that ?