Business & farm

Follow-up comments:

• 2022
  • Go back into TT to amend the K-1.  I can't tell you how that needs to be accomplished.  Possibly just answering some questions.
  • Indicate that the K-1 is final
  • You don't need to re-input anything from the K-1 since you already have that information in the return
  • TT will ask you questions about liquidating distributions, cost basis, selling price, etc.
  • Hopefully you have maintained a tax basis schedule for this investment as this is critical in determining your overall gain or loss.
  • If there is a distribution on the final K-1, this is your liquidating distribution (or "selling" price).  Do not include this figure in determining your tax basis.  Use this for when TT asks for selling price.
  • TT will then want your tax basis or cost basis (which should not include the final distribution noted above).
  • Once you enter those figures, TT will then compute the overall gain, loss, free up any suspended losses if applicable, and reflect the necessary information on form 8949 and Schedule D.
  • This should take care of 2022.  Since there is limited information, I can't say whether you have any tax due or a refund.
• 2023
  • Here you need to make sure that there are no suspended losses being carried forward since the prior year was not marked final.
  • If there are, you will need to go in and manually delete those and then delete the K-1 as noted in a prior comment.
  • Once those two items are taken care of, you can definitely file your 2023 return
• Partnership tax gets complicated very quickly.  So depending on the $$ involved, you may want to get some assistance from a tax professional, or alternately call TT for some help.