Business & farm

if your askikng about schedule L on the K-1, that's supposed to be tax basis

1065 K-1 instructions

Item L
The partnership must report your beginning capital account and ending capital account for the year using the tax-basis method, including the amount of capital you contributed to the partnership during the year, your share of the partnership's current year net income or loss as computed for tax purposes, any withdrawals and distributions made to you by the partnership, and any other increases or decreases to your capital account determined in a manner generally consistent with figuring the partner's adjusted tax basis in its partnership interest (without regard to partnership liabilities), taking into account the rules and principles of sections 705, 722, 733, and 742. See the Instructions for Form 1065 for more details.
For many reasons, your ending capital account as reported to you by the partnership in item L may not equal the adjusted tax basis in your partnership interest. Generally, this is because a partner's adjusted tax basis in its partnership interest includes the partner's share of partnership liabilities (and capital accounts determined by using the tax-basis method don't). In addition, your partnership may not have all the necessary information
Partner's Inst. for Sch. K-1 (Form 1065) (2023) 13
from you to accurately figure the adjusted tax basis in your partnership interest due to partner-level adjustments. You're responsible for maintaining an annual record of the adjusted tax basis in your partnership interest as determined under the principles and provisions of subchapter K, including, for example, those under sections 705, 722, 733, and 742. Regulations section 1.705-1(a)(1) provides that a partner is required to determine the adjusted basis of its interest in a partnership when necessary to determine its tax liability or that of any other person. For example, a determination is required in ascertaining the extent to which a partner's share of loss is allowed, when there is a sale or exchange of all or part of a partnership interest, and when a partner's entire partnership interest is liquidated. The adjusted basis of a partner's interest in a partnership is determined without regard to any amount shown in the partnership books as the partner's capital, equity, or similar account.

you're saying you invested $75,000. That's your beginning tax basis apparently 11 years ago

any losses or distributions reported on the k-1s during the ensuing 11 years would reduce your tax basis $ for $ while any income items would increase your tax basis

to start 2023 your tax basis assuming the partnership followed IRS rules and used tax basis would be the amount in beginning capital. Current year losses and distributions would reduce that while any income items would increase it. That's your tax basis for capital loss. if this is negative you actually have a capital gain

to use the $75,000, you initially invested as your tax basis would seem totally incorrect since it does not account for the partnership items reported over the past 11 years on the k1s.  Perhaps K-1s were never issued? Then run to a tax pro because in my opinion you have no proof as to your tax basis and thus are probably not entitled to any deduction. Using wrong numbers, if caught, can result in large penalties if the misstatements in your tax liability is large enough. even smaller errors resulting in underpayment are subject to penalties of 5% of the underpayment for the first 5 months and .5% after that and of course interest.

if you have a reportable loss, the way to handle this in Turbotax is to check final k-1 and partnership discontinued in 2023 boxes. Then in the disposition section of the k-1

1) check complete disposition

2) check either abandoned or liquidated interest

3) date dispose 12/31/2023 - any date in 2023 will suffice

4) date acquired xx/xx/ 201x any date that is long term will suffice

5) how acquired  - purchase

6) selling price 0 (line 5)

7) tax basis -  (line 7) see above 

😎 ordinary gain 0 (line 9) 0 must be entered

automatically the loss will appear as long-term on line 11

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the at-risk form 6198 is only needed if you have current year losses that exceed your tax basis at the beginning of the year.

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do not repeat reporting the loss on schedule d form 8949.