I forfeited my LLC partnership interest and received a final K-1, but TurboTax is still asking for the sale price. Should I put 0?

[bshih15]

I entered an LLC partnership with my old employer in Feb 2021, but I forfeited the full amount when I quit and joined a competitor before it vested, in November 2021. Even though there was no sale price and I did not receive anything at all in exchange for the forfeiture (I chose "Abandoned Partnership Interest" as my disposition type), TurboTax is asking me for the sale price, and it won't let me leave it blank. Should I put 0 here?

My Final K-1 has nothing but the capital contributed during the year of $X, other decrease of ($X), an explanation of "FORFEITURE OF UNVESTED MEMBERSHIP INTEREST," and an empty Schedule K-3 (everything in Box E is checked "No" for does not apply).

[Mike9241]

use 0 for sales price

[nrboyd92]

OP - I'm in the same situation. Did you select "abandoned partnership interest" and put $0 as sale amount? Did it work or are you in tax jail now?

[DianeW777]

Putting zero for the selling price would be appropriate if you abandon and received no payment for your partnership share or interest, as indicated by Mike9241.

@nrboyd92 

[nrboyd92]

Thanks! Yes, the class C units were granted to me with the stipulation that they would vest only after 3 years of employment. An 83b was filed at the time of granting. I switched jobs in the middle of 2023 before they vested and, per the contract I had with my old employer, the unvested units were automatically forfeited. I received a final K-1 which, as far as I can tell, shows no gains or losses (the decrease in capital for the year is almost the same as the beginning capital amount and the ending capital amount as well as all boxes under "Partner's Share of Current Year Income" are blank or $0).

Thanks again.