EB-5 FINAL K-1

[18686]

I am an EB-5 investor and received the final K-1.When I selected "This partnership ended in 2022",I confused  which one is right? 1.complete disposition  2.disposition was not via a sale 3.sold and am receiving payments

[DianeW777]

It depends. If you sold your interest or whether the partnership itself was dissolved determines your selection.  

1. If you are receiving any payments or just one payment for the sale of a partnership you should enter that sale under Investments. Select 3. 
   • Where do I enter Investment Sales?
2. If the partnership itself has been dissolved you should select number 1.
3. If you exited the partnership and did not sell your share you should select 2.

[18686]

Thanks for your reply.

I didn't find any information on my final K-1 to decide which one is right.It only shows "Final" and no "Partnership Additional info 2" .Could you please give me a hand?

[AliciaP1]

Can you clarify if you chose to sell your investment or did the investment just cease operation?

@18686 

[18686]

I invested to EB-5 project several years ago.In 2022, the region center made a repayment.The investment is closed now.In this case, which  one I could select? Thanks!

[PatriciaV]

It sounds like they returned your investment and dissolved. In this case, the partnership was a complete disposition.

If asked, enter the total payment(s) you received as "sales price." If they returned exactly what you invested, you should have no gain or loss to report.

[18686]

Thanks for your reply.

I can't find "purchase and sell date" and "Partnership Additional info 2" on my K-1.

[Rick19744]

@18686 

As a partner in a partnership, you should be tracking your tax basis in this investment.

Indicating a complete disposition is fine.

When you update your tax basis for the applicable lines on the final K-1, do not adjust it for any final distribution.

TT will ask some questions since this is a final K-1.  TT will need to know your selling price - this will be your liquidating distribution from the partnership. TT will need to know your tax basis - you should have this as well.  TT will then handle the rest.

If you have not maintained your tax basis, section L on your K-1 is based on your tax capital.  This may not be exactly your tax basis, but most likely close if you have not maintained your outside tax basis.  If this has been reduced by the liquidating distribution, add this amount back to get your "tax basis".

At this point you should be good to go.

[18686]

Thanks for your reply.

I can't find "purchase and sell date" and "Partnership Additional info 2" on my K-1.

[18686]

My K-1 shows :

Ordinary business income is zero.

Interest income is 3,878

Could you please check if my "sales price" is exactly what I invested? 

[DaveF1006]

This is really difficult to determine based on the information you are giving us. We cannot speculate if your sales price and investment basis is the same. 

[18686]

Could you please advise what information you need? During the years of my investment, I only got the interest income. All of my K-1 forms shew the ordinary business income are zero.

[RobertB4444 · Accepted solution]

Then your sale price is the amount of money you received to close out the partnership this year minus the interest income.  

The sale date is the date that you got that payment.

The purchase date is the date that you got into the partnership.  You may have to enter an approximate date.

If you have no idea what you invested in this company then put the amount of money that you received this year as your cost basis.

@18686 

[18686]

Many thanks for your help!