A number of comments:
- As a partner in a partnership, you should have been maintaining your tax basis in the investment.
- You don't mention prior year(s) activity; have you incurred suspended passive activity losses?
- In answering your specific question, "no" your basis is not tied to any loan. This is completely separate as the loan is related to the entity level activity.
- If you determine your tax basis, you will need to adjust it for the current year activity on the K-1 (excluding and distributions). This figure needs to be entered into TT as your "cost basis" as this will be requested through the interview input process.
- Your distribution is your sales price.
- If you have not maintained your tax basis, you may be able to use what is reflected on the K-1 section L. However, if you do use this, you need to adjust this figure for any distributions reflected in this section.
- So by way of a simple example, the ending capital (this is technically tax capital) may reflect zero.
- Add back any distributions
- Adjust for any "book adjustments" that may be reflected on the other increase / decrease line.
- This figure then may approximate your tax basis.
- Partnership tax gets complicated very quickly and it may be in your best interest to meet with a tax professional to help you arrive at your tax basis.
*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.
