Final K-1 Box Not Checked

ilenearg — Fri, 08 Aug 2025 22:18:14 GMT

BACKGROUND: As a limited partner in several limited partnerships (as an investor in theatrical productions), I receive several K-1s each year. If one (or more) of the entities has stopped operations (i.e., the show has closed), they SOMETIMES will check the K-1 box, however, in some instances, the K-1 box is NOT checked, even though the show has closed. In some cases, they may be waiting for some royalty funds to be coming in from touring companies... or just HOPING that they will have future productions. I've noticed in some cases that years can pass and, although the entity is inactive, they NEVER distribute a "final" or "amended" to finalize. Therefore, I can't necessarily mark that the partnership ended in, say, 2024, and key in my investment basis so that my losses can be realized.

QUESTIONS:

1. If the "Final K-1" box is not checked, can I still say that the entity ended in 2024 and that my investment was liquidated?

1b. If I DO, and then, in the future, they get some small income to distribute and do another K-1, what would I need to do at that point? Amend, or just key it in for whatever year it arrives?

2. If now, 6-10+ years after the fact, I find that several partnerships stopped operating without doing a "Final K-1" in past years (so I never closed out in my own taxes to record my lost basis), is it too late to amend my return (even though they have not issued a Final or Amended K-1)?

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Final K-1 Box Not Checked