Passive participant in an LLC: How to answer "Describe Partnership Disposal" for final K-1

[begr]

I am a passive participant in an LLC that dissolved in 2022. I received a final K-1. I'm confused on how to answer TurboTax questions regarding the dissolution of this partnership.

On "Describe the Partnership", I chose "This partnership ended in 2022.".  However, I don't know how to answer the next question "Describe Partnership Disposal". The LLC ceased business operations (folded), so there was no "sale" involved. Should I choose "Complete disposition", and if so, how should I answer the following question "Tell Us About Your Sale"?

Thanks!

[PatriciaV]

Yes, choose "Complete Disposition" so you can report any gain or loss from the dissolution.

1. Under "Tell us about your sale," choose "Sold Partnership Interest," as you want to report a zero sales price later.
2. On the page "Enter Sale Dates" (which is misleading), enter the date you first invested in the LLC and the date it dissolved. This information is used to determine if any gain is long-term or short-term.
3. On the page "Enter Sale Information," enter zero for the Sale Price. 
4. Be sure to enter your Partnership Basis from your own records. This can be the same as what is shown on Schedule K-1, but often it is not. If you need help determining your basis, consider using TurboTax Live to talk to a tax expert.
5. The next page will display the Gain or Loss from this transaction.
6. Continue through the interview until you're back on the K-1 Summary page.

[begr · Accepted solution]

Thanks for your quick response and guidance Patricia.