When a PTP converts to a C-Corp you effectively have to treat it as a "Complete Disposition" via a sale, and then a repurchase. Treating it as a sale allows you to claim any suspended losses and to handle any tax liability you have for the PTP.
To do this, though, you have to come up with the share price you're to use for your new C-Corp shares. That should be in the communication you get from the PTP. That sales price is basically what you'd use to close out the PTP, and to establish what your opening basis is for the new holding.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
