As you may or may not understand, there is a specific order that determines if losses are allowed on a tax return:
- First you must have tax basis
- Second you must be at-risk
- Third you must have passive income if the activity is considered passive. If no passive income then the losses are suspended, as is the case in your facts.
As a partner in a partnership, you should be tracking your basis in your investment.
You would be able to utilize your suspended losses only to the extent that you have basis. Any suspended losses in excess of your basis would be lost.
So the key for you is hopefully you know your basis.
*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.
