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kulnam
New Member

Tax return with foreclosure document

Hi All,

I was expecting schedule-K1 for 2023 and waited so long but i got to know that schedule-K1 can't be generated as property got foreclosed. I have received only foreclosure document now and schedule-K1 for 2022.

I am trying to file my return but not getting how to proceed with foreclosure document ad TT portal asks for Schedule -k1 only. I have tried to gather this info but unfortunately no luck.

Can someone please suggest how to proceed ? I am running out of time to file my tax return. 

Thanks in advance

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2 Replies

Tax return with foreclosure document

Please check back later. I will page Champ @Mike9241.

Tax return with foreclosure document

see this link 

https://ttlc.intuit.com/community/business-taxes/discussion/limited-partnership-bankruptcy-with-no-f... 

in summary you indicate final k-1 for 2023 leaving all the lines in Part III on the k-1 blank. then in the disposition section of the k-1 you indicate that the partnership was discontinued in 2023.

enter 0 for sales price

you need to know your tax basis to get a capital loss for any remaining tax basis. likely it's the balance in your ending capital account on the 2022 k-1. if that's negative consult a tax professional because that would normally indicate you deducted, have suspended losses, and or received distributions in excess of your tax basis without having to report negative capital as taxable income (this can occur with qualified non-recourse financing that provides tax basis that's added back to ending capital but that's now 0 due to the foreclosure).  

this is an imperfect solution to a bad situation. 

if you subsequently do get a k-1 you'll have to amend 

 

 

 

https://ttlc.intuit.com/community/business-taxes/discussion/limited-partnership-bankruptcy-with-no-f... 

 

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