cost bass

[drzhiwang]

I got a real estate partnership K-1 marked. final

Beginning capital account ~~~~~~~~~$ -89,710

Capital contributed during the year ~~~~~~ $0

Current year net income (loss) ~~~~~~~~ $650

Other increase (decrease) (attach explanation) ~ $89,060

Withdrawals and distributions ~~~~~~~~$0

Ending capital account ~~~~~~~~~~ $0

Box 2 is 1942

Box 10 is -414

is Beginning capital account or ending capital account cost basis?

Thanks.

[ThomasM125]

Neither one of them would  likely be your cost basis for reporting a gain or loss on disposition of your interest in the partnership. The fact that the beginning balance is negative would probably indicate that the partnership sustained losses as those would reduce your basis. You can't deduct losses that reduce your basis in the venture below $0, so if you reported losses on your tax return to the extent they were equal to your net contribution, your cost basis for reporting the disposition of your interest in the partnership would be $0. Otherwise, your cost basis for reporting the disposition of your ownership interest would be what you contributed over the years, plus income from the venture you entered on your tax return, less losses you deducted, less money distributed to you. 

[drzhiwang]

Thanks.

I also noticed in box 20, I have 

SCHEDULE K-1 SECTION 199A INFORMATION, BOX 20, CODE Z

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DESCRIPTION AMOUNT

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RENT - APARTMENTS

RENTAL INCOME (LOSS) 27,652.

SECTION 1231 GAIN (LOSS) -161.

W-2 WAGES 10,985.

UNADJUSTED BASIS OF ASSETS 149,118.

is this UNADJUSTED BASIS OF ASSETS the cost basis?

PS: Essentially, an unadjusted basis is the original cost to purchase an asset, which includes the price to acquire the asset and any expenses and liabilities associated with the purchase.

[PatriciaV]

The Section 199A information provided with Schedule K-1 relates to the activity of the underlying company, not your investment in that company. The UBIA for this section reports the unadjusted basis for the rental apartments.