Hi Nexchap. @nexchap
I'm working on this now and would really appreciate your insights:
1. I can add the increased negative basis as LTCG by inserting the amount on line 9a of the K-1 as you suggested.
2. Next then I need to find a way to release the suspended losses in an equal amount (as is proper per the article from Forbes provided), which should then show as reduction of ordinary income for net zero effect. I am keeping good records. Any suggestions on how I can show using the same amount of loss (from the cumulative passive losses of the K-1) to offset the gain, which is the result needed.
Guess I'm really asking how do I get the correct amount of the cumulative loss to show up ?
Thanks.
PS From prior post and sorry I can't link very well ....
this link, which at example 7 states that the cumulative losses can in fact be used to offset the long term gain from the basis going negative. FYI.
