There are a number of facts that have not been provided, but will provide some commentary:
- You don't mention how long you have had this investment?
- Have you received a K-1 in the past?
- If so, this investment should have been populated in TT
- You don't indicate whether you have any passive activity carryovers, since based on your limited partner status, any losses would only be available to the extent of passive activity income.
- Since we don't have the above facts, if all you are needing to do is input your loss on the investment:
- Where are you attempting to input this detail?
- Don't get hung up on semantics when reviewing the input commentary
- If you are just attempting to input this through the investment section, just say "yes" to selling. Don't worry about the semantics; it's the correct end result that counts
- It appears that since this investment / business is bankrupt, then your proceeds are zero
- Your tax basis is the cost basis.
- In order to claim the loss, you need to make sure that you take the loss in the proper year.
- Are you certain that you won't receive any proceeds out of bankruptcy?
- Has the business notified you that no future K-1's will be prepared?
- Do you have documentation that the business has actually filed bankruptcy?
- This isn't necessarily a TT problem, the problem is that these type of investments get complicated very quickly and you need to have an understanding of how everything works when preparing your tax return.
*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.
