@nexchap
@Anonymous
I've read the entire thread and don't think I've seen this addressed yet ....
Our interest in EPD have been held a long time and I noticed that for the 2019 k-1 for the first time the capital account and estimated tax basis numbers went negative to around $1k (the numbers are identical). The form also shows cumulative passive losses of nearly $9k.
The Q&A in the Instructions on K-1 state that "if your cash distributions cause your tax basis to fall below zero, you must report in taxable income the portion of your cash distributions necessary to restore your tax basis back to zero."
Question: How/where do I report this on 1040/shedules/turbo tax? Just a misc item as ordinary income?
Question: When I report this am I permitted to use any of the cumulative passive losses to offset the income from the negative basis?
Thank you!
