K1 Question

Forum|Forum|2 years ago
February 18, 2024
1 reply
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I have been a limited partner for 3 years (real estate construction project). I was getting K1 (2020, 2021, 2022, and the last one for 2023 to come soon). Last year, the project was finished, i.e., homes were built and sold. I will get last K1 for 2023 soon. I have passive loss carryovers accumulated from 2020-2022 K1s. I also had LT capital gains and distributions for which I already paid taxes (2021 and 2022).

Question: how do I use passive loss carryovers that I have accumulated (and could not use per CPA) when the project is finished now (in TurboTax Desktop)? If not mistaken (again per CPA which I no longer have) I can use those when project is finished i.e. get last K1. I would like to ensure I report and use all losses correctly.

Mike9241

those losses were reported on your K-1 but suspended due to passive loss rules and if you used Turbotax it should have kept track of them on the k-1 worksheet. . now that the partnership has terminated they should be freed up with the final K-1. indicate total disposition and then you'll need to enter some additional info in the sale of partnership worksheet. sales price 0 tax basis 0