K-1 real estate limited partnership

[cyberdlk]

I invested in 2005 in a boston capital limited real estate partnership . Original investment was 10K. Distributions over the years were 2100.  The partnership was closed in 2019. How do I record the loss.

Is my loss 10k -2100 ? and where do I record this in turbo tax (if at all) 

[DianeC958]

If you received a K-1 in 2019, the K-1 should be marked as a final K-1.  Then as you go through the K-1 section of TurboTax, when you get to the screen titled Describe the Partnership, click the option, Disposed of a portion of my interest in partnership during 2019.

The next screen is titled Tell Us About Your Sale, on this screen pick Abandoned Partnership Interest.  Continue to go through screens filing in the information about your partnership interest. This will give the program the information to calculate your loss on the partnership going out of business.  Since it will be a Capital Loss (you invested over 1 year) the loss will be capital and limited to a deduction of $3,000 above any Capital Gains you have.

If on the K-1s you received you paid taxes on the $2100, then you do not reduce your original investment by the $2,100.

[cyberdlk]

Thank you so much --that was so clear and very helpful. Greatly appreciate it!

[Irene2805]

On behalf of DianeC958, you're very welcome!