Difference Between "No entry" and "Disposition was not via sale" option when filing K-1

[Ryuichi1]

What is the difference between these options and what do they actually mean? They are under the question "Describe Partnership Disposal" which comes up after checking the "Partnership ended in 2022" box.

The help menu isn't too useful in this case. To be honest I feel like Intuit could have done a better job guiding the user through this question.

Thank you

[JohnB5677]

I believe you are in the "Describe Partnership Disposal" screen

 

If you select the Learn More option

Complete disposition:

If you disposed of your entire interest in a passive activity or a former passive activity to an unrelated person in a fully taxable transaction during the tax year, your losses allocable to the activity for the year are not limited by the passive loss rules and any passive loss carryovers are allowed in full. A fully taxable transaction is a transaction in which you recognize all of your realized gain or loss.

Disposition was not via a sale:
If a passive activity or former passive activity is involved in a like-kind exchange, the activity should NOT be considered fully disposed of and current year losses and passive carryovers are still subject to the passive activity loss rules.

Sold and an receiving payments:
If you are using the installment method to report this kind of disposition, figure your allowed loss for the current year by multiplying your overall loss (which DOES NOT include losses allowed in prior years) by the following fraction:

Gain recognized in the current year
-----------------------------------------------------
Unrecognized gain as of the beginning of the current year

A partner in a publicly traded partnership (PTP) is not treated as having disposed of an entire interest in an activity of a PTP until there is a complete disposition of the partner's entire interest in the PTP.

I do agree that they may not have been labeled as I show them.  This would have provided more clarity.

If this does not completely answer your question, please contact us again and provide some additional details.

[Ryuichi1]

Thank you, @JohnB5677. Saw these and they make sense. But what is the "No Entry" option? I'm asking because it seems like the three options you described aren't a good fit for my case. The partnership venture was unsuccessful, ended without any payments and the whole investment was lost resulting in a long-term loss under 9a on the K-1. So there was no sale or disposition per se.

[JohnB5677]

I understand, but I think you described "No Entry" perfectly.  It is the catch all for everything that is not one of the other three.

[jeffbuttars]

 @JohnB5677 @Ryuichi1 
I am running into the same thing only a year later/2023.  Thanks for posting the discussion. I have a follow up question.  The only difference I can determine between "no entry" and "complete disposition" is an unrelated person causing a fully taxable transaction.

My situation is similar to @Ryuichi1 , "The partnership venture was unsuccessful, ended without any payments and the whole investment was lost...".

However the outcome in turbo tax between "no entry" and "complete disposition" is huge. In turbo tax, "no entry" becomes a capital loss which is limited to $3,000 per year (assuming no other gains). However, "complete disposition" lets me take the entire loss against income.

My possible difference is I am a limited partner (own 1.3%), the partnership assets were leveraged and was eventually foreclosed on by the 1st lien lender causing a complete loss for all partners. Is there any consensus that being foreclosed on and the remaining partnership has zero assets is a "complete disposition" or is that considered a "no entry"?

[77tax]

I have the same question. Please help.

[CatinaT1]

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[Wambats]

yes I was.  Thank you.

[adave9883]

Did you ever get an answer to this? I'm having the same issue this year and want to know - it's also letting me take the entire loss against income. 

[jeffbuttars]

I feel like they added the "Abandoned partnership Interest" option, which seemed to fit my scenario.  

Turbo Tax Question:>>>>>	Describe the Partnership	Describe Partnership Disposal	Tell us about your sale
Full write off	This partnership ended in 2023	Complete Disposition	Abandoned partnership Interest