topic Schedule K-1: Partnership property sold including my interest - I have a loss not gain - how to address in tt in Get your taxes done using TurboTax

Schedule K-1: Partnership property sold including my interest - I have a loss not gain - how to address in tt

lgal63 — Sat, 11 Jul 2020 23:43:05 GMT

In 2019, the general partner of a single property partnership of which I am a limited partner, sold the property. I am assuming they sold it as a loss as I have a loss reflected on my k-1 and I received not distribution. I am having trouble figuring out how to enter this in tt. Is it a sale of the property? If so, it asks what the sales price was, is that for the entire property or my interest? If my interest, is that a combination of the unrecaptured sec 1250 gain (positive number) and net section 1231 loss? Also, this was the final k-1 so the partnership has ended. I see questions related to that as well. Any guidance would be appreciated. I can be more specific as to what is filled in on my k-1 if that is helpful. Also, in the partner's capital account analysis, there is a beginning capital account dollar amount which I believe is my adjusted cost basis. Then the current year increase or decrease is a negative of that same number so that the ending capital account is $0. Do I reflect that number as my basis or my original investment. Essentially, I lost my entire investment excluding dividends paid. Again, any guidance would be appreciated

Re: Schedule K-1: Partnership property sold including my interest - I have a loss not gain - how ...

DavidS127 — Mon, 13 Jul 2020 23:10:40 GMT

You enter the K-1 boxes into TurboTax just as they are shown on the K-1 your received.

When you enter your K-1, on the initial "Describe the Partnership" screen you check the box that you disposed of your interest in the partnership during the year. This will trigger the deduction of any prior year passive activity losses for the partnership in this final year when the property was completely disposed of.

Then, when TurboTax gets to the questions about the disposition of your property, you won't report sales proceeds because you didn't sell your interest to anyone, the partnership terminated. Your cost basis is also zero, based on the final partnership capital account for you.

Re: Schedule K-1: Partnership property sold including my interest - I have a loss not gain - how ...

lgal63 — Tue, 14 Jul 2020 13:27:01 GMT

Thanks so much for your input. That makes sense after thinking it through. Kind regards.