Business & farm

@manbeing Note that a couple years ago TT moved their old forum to this new site.  All the posts that moved were re-dated to June 4, 2019.  I mention that since this thread is really old, and its tough to tell how the later posts apply to the earlier ones.  But with that said, the math goes like this:

- Sales proceeds is easy:  the amount you sold for, or $500

- Cost is hard.  Its not what you paid originally (10,000).  Its what you paid, adjusted by the K-1 adjustments (-2500).  So cost is actually $7500.

- So profit/loss is sales - cost or -7000.

- But the IRS doesn't tax all losses the same way.  In this case, the total -7000 is split.  There's $600 of Ordinary Income, and there's -7600 of Capital Loss.  Combined, -7600+600=-7000.

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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!