There are two methods you could use to accomplish this:
- The technically correct way is to complete form 6198 https://www.irs.gov/pub/irs-pdf/f6198.pdf
- I included a link so you can review the actual form.
- The other method would be to only include the amount of the allowable loss on your return. Using this method would require you to maintain records that would allow you to utilize any suspended losses in the future. If you use this method I would recommend attaching a schedule with your computation.
- Since you are asking about basis limitation, I am assuming that you are maintaining a basis schedule so you know what your limitation is?
- Additionally, if you have items in more than one box on your K-1 you are required to allocate the suspended loss among the items on the K-1 (ie: ordinary loss, charitable contributions, etc).
- As you can see, there is some work involved. Depending on the $$ involved you may want to consult with a tax professional to get you started on the right path.
*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.
