Let's analyze what we have here:
- You contributed capital to the partnership which is the beginning figure for you tax basis.
- Up through 2014 you indicate that since you were active / material participant, you utilized any losses that were reflected on your K-1. These amounts (and any other applicable items on the K-1) impact your tax basis.
- Post 2014, you indicate you became passive, and as such, you did not include anything on your return. Had you been using a software program such as TT, the software would have tracked these suspended losses. As noted in my earlier response, even though losses are suspended, they still impact your tax basis.
- While I don't have any information as to what else may be flowing through your Schedule E (other activities) that may have allowed some of the losses to be used, you need to look at this. If you have no other Schedule E activity other than this one K-1, then I would total up all losses post 2014 and reflect those in TT as suspended losses. This will allow TT to flow those into your return. But once again, make sure you adjust your tax basis for these suspended losses.
- Minimal exposure in number 4 especially if you have no other Schedule E activity.
*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.
