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Get your taxes done using TurboTax
When you first invest in a partnership your investment is "at risk": if the partnership went out of business, you'd lose your investment. But over time, the partnership will return money to you (distributions) or it will give you deductions on your taxes (losses that you'll eventually claim). Each of those events reduces the money you have at risk. So if you started by investing $100, and over the years the partnership has returned $101, you'd no longer be able to check the "Investment at risk" box. At that point, the tax treatment for losses changes. Until then, you keep checking it.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
‎April 13, 2021
4:32 AM
6,666 Views