Many thanks for your reply. There are two negative numbers in my Schedule K Section L. The first is listed as "Capital contributed during the year" and the second as "Current year net income." What is the difference between these two? My feeling is that I should be able to take a deduction for both. After all, the whole amount that was in my capital account was wiped out in the last year. I guess that assumes that my tax basis was in sync with the capital amount but I don't see anything that might have caused them to become different. These Schedule-Ks have always been pretty simple reporting either some real estate income or loss and not much else. Can you explain what might cause these numbers to move apart? I will, at any rate, attempt to fill out the worksheet from Form 1065 you cited.
In answer to your other question, in Section K the only number that appears is for "Qualified nonrecourse financing." There is nothing else and nothing specifically mentioning a foreclosure amount.
