If you have entered this investment from Schedule K-1 at any time in the past, you would need to report this under Investment Income >> Schedules K-1.
- Either enter the existing K- 1 or add a new K-1.
- Enter/confirm the information from the last K-1 you received.
- Indicate the partnership ended this year. This will remove the K-1 from your return next year.
- Work through the interview to the page "Describe this partnership" and enter any passive loss carryovers you have from this investment. You'll need to check your prior year return(s) to find this information.
This is important because when you completely dispose of a passive activity there is a final accounting of whether you actually made or lost money on this investment.
- Do not report any "sale" information under this topic.
Now go to Investment Income >> Stocks, Cryptocurrency, etc. and report the partnership dissolution as a sale under "Other."
- Enter the date you first invested in the company and the date you determined it was worthless (sale date).
- Enter zero sales price and your total investment as cost/basis.
- TurboTax will calculate the loss on the dissolution.
@cswn
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