Business & farm

To remove a K-1 from a dissolved investment, you must indicate that you disposed of the investment. It's possible you didn't report the disposal in the final year.

These instructions are for TurboTax for Desktop. The screens may be slightly different in TurboTax Online, but the process is the same.

Review your entries under Wages & Income >> Business Items >> Schedules K-1: 

1. Click Start/Update then choose the type of K-1 you need to remove.
2. Say Yes to the question "Did you receive a K-1 in 20XX?"
3. Click "Work on it now" to review the information for this K-1.
4. On the page "Describe the Partnership," check the box for "This partnership ended in 2022" (even though it ended in a prior year).
5. Choose "Complete Disposition" for how it was disposed, and that your Sold Partnership interest (even if you didn't).
6. Enter the date of your first investment and the date of the FINAL K-1 that you received (may be a prior year).
7. Enter Sale Price as zero.
8. Follow the prompts back to the list of Partnerships (enter no income/expense info).

This process will include the investment on your current year tax return, but it should be removed next year. 

If you would rather remove the K-1 this year, follow these steps (TurboTax for Desktop only):

1. Open your return, then click the Forms icon in the TurboTax header.
2. Scroll down in the forms list on the left to "K-1 [name of partnership]."
3. Verify there are no other subforms listed under the main K-1 form. If so, you need to delete the subforms first.
4. Click the form name to open it in the main window.
5. Confirm this is the K-1 you need to delete.
6. Click Delete Form button at the bottom of the form and confirm.
7. When you are finished, click "Step-by-Step" in the header to return to the main screens.

@fredptheo