topic How to answer "how you disposed of this partnership" question after redeeming interest from a partnership? in Business & farm

How to answer "how you disposed of this partnership" question after redeeming interest from a partnership?

haol629 — Tue, 04 Jun 2019 00:26:21 GMT

I was an limited partner in a partnership that invests in stock markets like a hedge fund. I redeemed my interest in 2018 and received cash payments of my final account value. The partnership still exists but I am no longer part of it. In TurboTax I checked "This partnership ended in 2018" and 'Disposed of a portion of my interest in partnership during 2018". Is it correct? TT then asks to describe the partnership disposal. Options are"No entry", "Complete disposition", "Disposition was not via a sale", "Sold and am receiving payments". Which one shall I choose?

Responses to your questions: You had a complete disposit...

Rick19744 — Tue, 04 Jun 2019 00:26:23 GMT

Responses to your questions:

You had a complete disposition.
Once you check this, TT will ask for additional information. You will need to be able to provide your sales proceeds amount and your tax basis. TT will then compute your overall gain or loss on this investment.

I had carryover loss from pervious years with this partne...

haol629 — Tue, 04 Jun 2019 00:26:24 GMT

I had carryover loss from pervious years with this partnership. With complete disposition, TT is deducting the entire loss, and showing it as selling business property. Is this expected?