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April 4, 2023
Question

K1 Limited Partnership Abandoned

  • April 4, 2023
  • 1 reply
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I bought into a K1 limited partnership is 2014 for $18,000.  Over the years I reported passive losses of $5000.  I am trying to abandon the partnership as it is not materially operating and report the loss in 2022.  My current cost basis is $13,000 and abandon value at $0 so why is my income for the section equal zero?  Shouldn't I recognize a $13,000 loss?

1 reply

April 5, 2023

if you have actually given up your ownership interest then you have a capital loss of $13K. not ordinary. if you still own the interest and the partnership has not shut down, you are not entitled to any loss deduction.