I reviewed all the comments and advice here and decided to take the $4,245 Syndication Costs as part of the loss in this failed limited partnership. I told Turbotax Premier that the total investment of $75,000 was lost and so had a long term loss of -$75,000. I went through all the worksheets and found a few error. I found the hard way that you must enter dates as month/day/year in this format: 12/31/2023 and not as 31 Dec 2023. There is no error checking in Turbo Tax for date entry, and so Turbo Tax kept giving me a short-term loss as the date was entered wrong. The investment is over eleven years old and so it is a long-term loss.
So I forced the loss to be -$75,000 as it seems that if the investor pays the syndication costs (basically sales commission on the sale of the partnership interest) that they can be subtracted from the basis, allowing the total investment to be a long term loss, which can be carried forward to future years to offset future capital gains.
I am still getting an error in Turbo Tax on the K-1 entry and I can see no way to find the error or fix it. Seems like in previous version of Turbo Tax that entries could be overwritten and corrected. I have an error on the Schedule K-1 At-Rick Limitation Allocation Worksheet for 2023. The $75,000 loss was shown in the table as both a Portfolio long-term loss and as a Sale of interst long term. Making the total loss $150,000. I can see no way to correct this and have looked at every entry in the K-1 and nothing fixes this. Doesn't seem to affect the K-1, but this is the only error I can find and can't fix it. I still have error symbols on the K-1 Partner return and two other errors following it, K1P Addl Info and K1P Sec 59e, I don't see any errors that I can identify in the K-1 itself.
Sorry for this long entry. If anyone has a suggestion as to how to get rid of this error on the K-1, I'd appreciate the advice.
Veehb
