Total novice situation and I apologize for not being able to get this right. I have worked with 4 TT live agents so far and each gives different advice.
Situation:
- Invested in a partnership in Sep 2020 for $30K
- Additional capital call in Nov 2023 for $3.6K
- Return of capital (Distributions)
- $33.6K in July'24
- ~$17K in July'24
- ~1.4K in Dec'24
- Total in 2024: ~$52K
- Final K1 for 2024 received in Sep 2025
- Basis (capital account) calculated at start of 2024: $26K
- Net 2024 income: $27K
- Distribution: $52K
- Ending Basis 2024 (capital account): 0
I have followed TT prompts as follows:
- Partnership ended in 2024
- Complete disposition
- Sold Partnership Interest
Now I am at the Enter Sale Information and I am bamboozled (as are TT Live Agents) on what to enter on the Sale Price and Basis.
On the one hand, it seems like there wasn't a sale, since the assets were liquidated and distribution made. Which makes the sale price and Partnership basis as 0. On the other had, I wonder if I should be using $52K as the sale price and $26K as the basis. Or is it $52K as the sale price and $0K as the basis?
Tax Gods, I put myself at your mercy. :(
