topic Schedule E and K-1 in Business & farm

Schedule E and K-1

dentist47 — Mon, 14 Dec 2020 22:14:17 GMT

I am confused entering info from my K-1 to Schedule E. I am going to only ask a simple question to start and will try later for what I perceive as very confusing issues. Where do I enter my remaining basis , for a business that was closed in 2020.? I have a K-1 and a a shareholders basis computation sheet. I am assuming that the remaining basis is a long term capital loss.

Re: Schedule E and K-1

M-MTax — Mon, 14 Dec 2020 23:32:04 GMT

S corp? If an S were there distributions?

Re: Schedule E and K-1

dentist47 — Tue, 15 Dec 2020 00:36:04 GMT

Re: Schedule E and K-1

dentist47 — Tue, 15 Dec 2020 00:36:44 GMT

Yes S corp....no distributions

Re: Schedule E and K-1

Anonymous — Tue, 15 Dec 2020 00:55:13 GMT

it's unusual for there to be any remaining basis when the business folds especially if you were the only stockholder. in such situations, losses and distributions would reduce your basis to zero. the situations where it could happen: you weren't one of the original investors (multiple stockholders). you inherited the S-Corp stock with a stepped-up basis. you contributed cash and/or property that was disproportionate to your ownership (multiple owners). bad bookkeeping/errors in return/k-1 preparation. anyway, if you have a remaining basis it's a capital loss reported on schedule D/form 8949