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February 18, 2025
Question

Limited partnership dissolution

  • February 18, 2025
  • 1 reply
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If a limited partnership dissolves entirely and my entire investment is lost and shown as a capital account loss on my K-1 is the only tax treatment a Passive Activity Loss that may offset other NIIT gains?  So perhaps no real deduction?

    1 reply

    February 18, 2025

     If you have a capital loss on the disposition of an interest in a passive activity, the capital loss deduction is limited to the amount of your capital gains plus the lower of $3,000 ($1,500 in the case of a married individual filing a separate return) or the excess of your capital losses over capital gains.  You would be able to carryforward the capital losses.  It is very limited.

    coachdwiAuthor
    February 19, 2025

    Thank you MaryK.  That is what i was afraid of.