@AliciaP1
If you select "No Entry" the K-1 is not marked as Final, which is incorrect. TT when it sees the Final K-1 marked, it allows Passive loss which were disallowed in previous years to be taken, which is correct, but TT asks for sale date/price and purchase price/data, and this is not correct. If you do not mark final K-1, next year you will have to delete the imported K-1, and this will also delete any carryover passive loss which were disallowed in previous year, which is incorrect.
If you mark disposition not VIA sale, you are not asked for sale/purchase price, but TT create a K1P additional Info. , and in Part II (disposition of Partnership Interest" checks box 1b , i.e. "gifted partnership", which is incorrect.
If you mark complete disposition, and mark it as liquidated partnership, it ask for Sale information, and based on this creates an entry in schedule D, which is incorrect. In this case it also allow disallowed passive losses which were carried forward.
I discussed this with a CPA, and they told me that one should mark FINAL K-1, and complete disposition, and the answer for "Tell us about your sale" should be liquidated partnership Interest. They indicated TT is not correct, and should not ask for sale date/price purchase data/price, as all distribution and losses have been taken care in the K-1.
