form 8949 worksheet category C description distribution in excess of basis. date acquired - date interest in partnership acquired date sold 12/31/2019
now I'll raise a question. are there any liabilities shown on the k-1. some types add to your basis so you could end up with a positive basis making the negative capital a/c not taxable (the negative capital when added to the proper liabilities results in a positive number)
there are two key code sections involved. section 465 with deals with at-risk. at-risk is for purposes of determining whether losses are deductible or not. section 752 which deals with basis. distributions are not taxable if you have basis after the distribution. see this link for a further explanation.
https://www.dbbllc.com/newsletters/focus/jun2012/partnership-tax-rules-%E2%80%93-basis-partnership-l...
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