Final K-1 partnership

Forum|Forum|4 years ago
March 27, 2022
1 reply
1 view

I received a final K-1 on a real estate partnership and need to understand better how to enter the relevant numbers in TT. The K-1shows a net loss in box 2 of -2,034 and a Net section loss of -3,465. The Partner's Capital Account Analysis also shows a "Beginning capital account" of 13,868 and "Capital contributed during the year" of -8,370. When entering information into TuboTax Desktop, I tell TT this was a complete disposition and that this was a "Liquidated Partnership interest". It then asks me to put in the partnership basis. I do not have all of my K-1s going back to when I first joined this partnership so my first question is can I reasonably use the "Beginning Capital account amount" shown in box L of the final K-1 as the "partnership basis" or should I use the "Capital contributed during the year"? If I put the larger "Beginning Capital account" amount this seems to double count the net loss and next section amounts in the Total that appears in Section A of my resulting Schedule K-1 (form 1065) in TT. Basically, I lost quite a lot of money on this partnership and want to make sure I can fully claim the loss on my taxes but it's very unclear how to do this.

I have read a couple of other posts on final K-1s but did not see the information I need to resolve my question.

Mike9241

Level 15

we can't tell you. schedule L may or may not reflect your tax basis. can you call the preparer to find out and also why the negative capital contributed. it's unusual to have negative capital contributed. that could be just a plug to zero out your capital. especially if you did not receive a cash distribution of the $8370 that would get reported in box 19 and withdrawals and distributions on schedule L. are there amounts on schedule L?

if you can't get answers you'll have to use your own judgment.

if you didn't get the $8370, that may represent a writeoff of non-deductible items by the partnership which may entitle you to a capital loss in that amount.

julianz-Author

Level 2

There was a loan on the rental property that went into foreclosure. I assume the $8370 was absorbed by the foreclosure process. Should I ask? Is that unusual? I did not receive this sum anyway. Where exactly do I enter this as a loss in TT ?