Business & farm

@AJ80 the world of tax is complicated regardless of the size of an entity structure.

Obviously I don't know what fields in general are populated on your K-1's, but in general:

• You will start with initial contribution which we determined will be zero for you based on previous comments.
• Then look at each applicable box and determine how that impacts your tax return.
  • I recognize this is sometimes easier said than done for those that use TT and everything just works as it should; or that is the goal
  • But in general, fields with income, increase your basis
  • Same for expense / deductions, those will decrease your basis
  • Any other contributions that occurred during the past will increase your basis
  • Any distributions over the years will decrease your basis
• So using Excel, have the years at the top, K-1 fields in Part III down the side
  • box 1 income / loss
  • box 2 real estate income / loss
  • box 5 interest income
  • box 18 (current year K-1) tax-exempt income / expenses impact your tax basis as well
  • other typical boxes 6,8,9,10,11,12,13,19
  • remember don't decrease your basis by the distributions on your final K-1.  You will use this for the sales price as noted previously.
• Take a shot at it and see where you come up.  Getting some professional help this time of year will most likely be next to impossible, meaning a possible extension if you aren't comfortable with where your tax basis ends up.