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Level 1
posted Mar 29, 2022 4:20:34 PM

Partnership Dissolved - How do I Offset Cap Gain with Suspended Losses?

I received a final K1 which shows Net Long-Term losses of $1,451.    I have suspended passive losses from prior years totaling over $7,000.  How can I get Turbo Tax to offset the capital gain with some of the suspended losses?  I have checked the box that the "partnership ended in 2021" and that the "disposition was not via a sale", but the passive losses are still suspended.  What am I missing?

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2 Replies
Level 1
Mar 29, 2022 4:22:10 PM

I meant to type that I received a final K1 which shows Net Long-Term GAINS (not losses) of $1,451.    I have suspended passive losses from prior years totaling over $7,000.  How can I get Turbo Tax to offset the capital gain with some of the suspended losses?  I have checked the box that the "partnership ended in 2021" and that the "disposition was not via a sale", but the passive losses are still suspended.  What am I missing?

Expert Alumni
Mar 30, 2022 5:07:18 AM

Suspended passive losses cannot be used to offset capital gains. They can only be used to offset passive income.

 

Only a capital loss carried over can be used to offset your capital gains.