Hi @Anonymous
I have a similar question and I can tell from this answer to this one that you know what you are talking about.
We always had a CPA doing our taxes until 2017 when I started Turbo Tax. I am doing 2018 (late) and one of my husband's oil investments dissolved in 2018. The very FIRST K-1 (2014) for the one that is dissolving was left off of our 2014 return and we need those losses. I THINK I fixed it but am not sure. See below for what I did and what I was going to send with the tax return. Do you think this will fly? Should I just leave out all the supporting documents and use the numbers that I came up with through the method below?
Thanks in advance.
Brian purchased interest in 2 partnerships (Silver Tusk ($12,500) and Red Hawk Resources I ($25,000)) that provided their first K-1s in 2014. We gave the K-1s to the CPA but they were not on the 2014 returns and we didn’t notice. 2015 K-1 was on 2015 return but because 2014 was missing the carry forward losses were incorrect on all returns through 2017.
I only noticed because Silver Tusk dissolved in 2018 and the Carry forward passive losses from 2017 were tiny which made no sense. In going through past K-1s and tax returns I found that 2015 was the first tax return that included the partnerships.
I believe that this 2018 return has the correct figures and since there was no taxable income and losses are passive until disposition there is no reason to amend 2014-2017 returns. I'm including this explanation and supporting documents in case you notice a discrepancy between 2017 and 2018.
Here is how I fixed the carry forward losses. I input the 2014 K-1s in to Turbo Tax software (2017 earliest I have). I printed the worksheets and combined the carry forward losses from the 2014 K-1 worksheets with the carry forward losses on the 2017 K-1 worksheets and used the combined figures on the 2018 return.
Attached** for each partnership:
Calculations showing what should have been on 2017 Return
2014 K-1
2014 worksheet
2017 worksheet
** not here, but if you want to see them lmk
Thanks again.
