How do I claim credit for my remaining basis when K-1 filed tax year following sale of partnership property. Capital gain tax paid year of sale.

[TaxGuyBill]

Did you receive a "Final" K-1?  If so, when you enter that, the program should prompt you for the disposition information.

[Anonymous · Accepted solution]

A partnership terminates when all its operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership.

See section 1.708-1(b)(1) of the regulations for more information on the termination of a partnership.of the regulations.

so if all operations ceased in the year the assets were sold a final return should have been filed for that year.

if there was activity that continued into the next year, your remaining basis is a capital loss. 

a couple of points,

if all allocations and distributions were in proportion to capital, you should probably have no remaining basis.

if you had a written partnership agreement, it may have provided for what to do taxwise when the partnership terminated with some partners having positive capital accounts and others having negative capital.