Loss on Partnership Dissolution

Forum|Forum|3 years ago
March 10, 2023
2 replies
0 views

I am a partner in an LLC. This partnership dissolved in 2021. How do I report in TT? What schedules need to be completed? I have a significant loss on the investment. Do I complete a K-1? Does it get reported on Schedule d?

Thank you

Best answer by AliciaP1

You should have received your final Schedule K-1 from the partnership in time for your 2021 tax return filings. If you did not, you will need to amend your 2021 return as taxable transactions are required to be reported for the year they happened.

You should have received from the partnership a final Schedule K-1 and you should enter it as such in your return. As long as you enter the information into TurboTax according the thee schedule, you will report the income/loss on Schedule E. Depending on your basis in the partnership and the length of the investment as well as the materiality of your participation in the partnership, you may taxable gains or losses, or carryovers of losses.

AliciaP1Answer

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Mike9241

for tax purposes, you are only allowed to deduct k-1 losses to the extent of your tax basis. excess losses are not deductible (but tax basis can be tricky especially if there is qualified debt that can be included in your basis until the final year when that drops to zero. then excess losses become income) from your tax basis deduct the net losses and distributions that reduce your basis. if you still have basis, that's a capital loss