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Get your taxes done using TurboTax
You cannot use the initial price as the purchase price, if you check where it asks for "Enter Sale Information, it is asking for partnership basis, not purchase price. The partnership basis gets adjusted as there are losses/gains and distributions for the investment.
For example if you invested $5K in 2020
PB = partnership basis
In 2020 if there are no other losses/gain or distribution the PB =$5K at the end of 2020
In 2021 the investment had a loss of $1000, the PB at the end 2021 is $4000
In 2022 the investment issues a Final K-1 and a final distribution of $4000
If you use the initial cost of $5000 and enter the initial investment as the PB, and your sale price as $4000, you will end up double counting the $1K loss, once in 2021 as a passive loss (for passive activities), and a capital gain loss in 2022.
TurboTax should be able to calculate the PB as you enter the K-1 for each year, and should be able to give the option where a partnership ends but without a sale.
You can try some experiments with a dummy K-1which started in 2020, and is liquidated in 2022. Depending on what options you select in the interview questions, results will be different. Also, in 2022 make sure you mark the K-1 as FINAL, in TT, this allows any passive losses, that were not allowed in previous years to be taken when the FINAL K-1 is entered. Also, if TT recognizes that the K-1 is final, next year when you import your 2022 tax return into TT, it will know that in 2022 the partnership ended in 2022, and will not carry over any information to the 2023 tax return.