topic A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that? in Business & farm

A ltd partnership was liquidated on in May 2016 and I am sure I haven't been paid the amount I invested so I have a loss in excess of 10k can i claim that?

wellcraft — Sat, 01 Jun 2019 02:25:31 GMT

I have been receiving K-1 every year but the profit is nowhere near the investment. I am loosing in excess of 10000.00

As a partner in a partnership, you should be tracking you...

Rick19744 — Sat, 01 Jun 2019 02:25:33 GMT

As a partner in a partnership, you should be tracking your basis in this investment. This begins with your capital contribution and is adjusted each year by the applicable lines on the K-1.

Once you receive your final K-1, you will adjust your basis. Only when you have done this will you be able to determine your final gain or loss.

If your liquidating distribution exceeds your basis, causing a "negative" basis, you will have a gain to the extent of this negative amount (essentially putting you to zero). If you still have basis after subtracting your liquidating distribution, then you will have a capital loss to the extent of your remaining basis.

See the attached IRS commentary on adjusting your basis:

https://www.irs.gov/instructions/i1065sk1/ch01.html

Thank you very much exactly what I needed to know. Apprec...

wellcraft — Sat, 01 Jun 2019 02:25:36 GMT

Thank you very much exactly what I needed to know. Appreciate it very much!!

You're welcome.

Rick19744 — Sat, 01 Jun 2019 02:25:37 GMT

You're welcome.

Re: As a partner in a partnership, you should be tracking you...

allgr8 — Fri, 08 May 2020 15:24:20 GMT

I understand this answer, and thank you, but where in TurboTax would we enter the final gain/loss? I don't want to alter my K-1 in TurboTax to differ from the one I received, but that seems to be the only way to include it in my TurboTax return.

@Rick19744 @wellcraft

Re: As a partner in a partnership, you should be tracking you...

allgr8 — Fri, 08 May 2020 15:46:03 GMT

Never mind. I found the answer in another post. Form 8949.

@wellcraft @Rick19744