Some additional comments:
- As a partner in a partnership you should be tracking your tax basis in your investment. Knowing what your tax basis is, will provide you with the answer as to whether or not you are at-risk. This is also necessary as without understanding your tax basis you will not know whether any losses are deductible or the eventual gain or loss when disposed.
- For 2020 tax returns, your K-1 information should be presented on a tax capital basis. In general, this should agree to your tax basis; with the exception of any liabilities that provide you with at-risk (a discussion of liabilities and tax basis is beyond the scope of this discussion).
- I would tend to believe that your K-1 item L has been maintained on the tax basis all along and I would think that there would be a notation in an attachment to your K-1.
- Hopefully you are maintaining your own tax basis and your figure agrees to the K-1.
- If your tax basis is positive, you are at-risk.
*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.
