I received a K-1 for a passive investment (Llp limited partner). The “Partner’s Capital Account Analysis” section shows the $25k investment and the $25k loss, but it’s not marked as the final K-1. It was for a Broadway show that closed last year. Do I/can I check the box in TirboTax saying that the entity ended in 2024 and then list my cost basis and check that my investment was liquidated for $0, or do I just let it go on as of the show is still running? Trying to avoid a huge qualified business income carry forward that I likely wont be able to use up in my lifetime!
my primary income is from retirement 1099 and wages.
Can you contact the partnership to find out why the k-1 was not marked final. You marking it as final would allow the passive loss which might be improper if there is a valid reason for not marking it final. Thus without more info I would not indicate this is final. your actual cost basis is now zero since the $25K loss reduces your $25K cost to zero.
I did. They said there could be small future distributions for royalties collected from touring production. So would I only be able to realize/apply the loss to carry forward against QBI in the future (that I likely won’t ever earn in that amount since I now get retirement and wage income rather than a big chunk of qbi (I recently closed my business and just have some of these investments - passive income, but still qbi)?