My final K-1 shows "ending capital account" as zero, but over the life of the partnership I have experienced (significantly) more loss than is reported on each year's K-1 line 1 [Ordinary business income (loss)]. When I report this under the TT dialog "Describe Partnership Disposal" and then report it as "Sold Partnership Interest" it records the loss as Long term capital loss. But I need this loss to be reported as ordinaty busiess income (loss) so that it will reduce my other Schedule E earnings from similar partnerships. That's what it was. The long term capital gain/loss limits me to lowering capital gains which I do not have. The $3000/year does not help me with my tax situation this year.
Here is the formula that I used to determine the loss I experienced from this partnership:
Initial Investment + contributions - distributions - orindary business losses reported on K-1s = net loss not reported on tax returns.
