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bobnowlin
New Member

I am writing off a limited partnership investment with a basis of 7073. I have prior year passive losses of 3992 plus 2020 losses of 4481. How do I enter in Turbotax?

This was a liquidation, not a sale.
3 Replies
Critter-3
Level 15

I am writing off a limited partnership investment with a basis of 7073. I have prior year passive losses of 3992 plus 2020 losses of 4481. How do I enter in Turbotax?

To you it is a "sale" since you no longer have the partnership so click that box.  

Mike9241
Level 15

I am writing off a limited partnership investment with a basis of 7073. I have prior year passive losses of 3992 plus 2020 losses of 4481. How do I enter in Turbotax?

 there are some other things you need to do.  check that the k-1 is final. check that you disposed of your entire interest. use the quick zoom link to enter certain info.  assuming this liquidation is not reported on a broker's 1099-B you need to enter liquidation proceeds as the sales price and basis before liquidation proceeds. this is crucial so that passive losses are allowed. just entering final k-1 does nothing to free up these losses. 

 

Rick19744
Level 11

I am writing off a limited partnership investment with a basis of 7073. I have prior year passive losses of 3992 plus 2020 losses of 4481. How do I enter in Turbotax?

Some clarification needed on some items:

  1. When you indicate a basis of $7,073 is that your tax basis?
    1. Is this based on your maintaining a tax basis schedule?
    2. Or was this indicated on your K-1?
  2. The basis figure you mention, is this adjusted for the current year loss of $4,481?
  3. Is your basis adjusted for the final current year K-1 items?
  4. Did you receive a liquidating distribution?
  5. Did you use TT in prior years?
*A reminder that posts in a forum such as this do not constitute tax advice.*
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