Your basis calc is way off:
- There are some small discrepancies between what you are reflecting from the K-1 and section L, but not being able to see the actual K-1 and all the boxes, I am going to go with section L.
- Your beginning basis reflects $64,064 which is nowhere near what the basis should be.
- Beginning basis is the capital contribution plus K-1 activity.
- Based on the section L amounts, that reflects your basis.
- Not sure how you are arriving at your figure, which exceeds section L by $38,999
- So if you use section L, which appears to be correct, this is tracking your basis (technically tax capital).
- Section L in my opinion appears to be correct and is where you should end up; no gain or loss upon termination.
- When using the K-1 figures you provided, I get tax basis of $2,364 which is only $2 off from section L.
- In conclusion, I believe section L is correct and you have no gain or loss upon disposition.
- If you think about it, you put in $50,000, had a gain of $106,228 (totals $156,228), had distributions of $139,664 leaving $16,564. Adding up the annual K-1 activity amounts is $14,158 (losses which reduces basis). So 16,564 - 14,158 equals $2,406 beginning tax basis equal to your section L ($2 rounding issue as noted previously)
- Bottom line, section L is correct, makes sense.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
