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K
Kreitzberg
March 10, 2023
Question

Passive loss deduction after partnership ends

  • March 10, 2023
  • 1 reply
  • 0 views

I have passive loss carryovers from a partnership that ended in 2022 but TT does not let me deduct those losses.  My investment was all at risk.  The software does allow the deduction if I state that I had completely disposed of my interests in 2022 but not when I indicate that the partnership ended. 

   

    1 reply

    R
    RobertB4444
    March 10, 2023

    You have to tell it that you completely disposed of your interests.  If the partnership is over then that is true as well.  Passive carryover losses are only allowed in the year that the passive activity is completely dissolved.

     

    @Kreitzberg 

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    K
    KreitzbergAuthor
    March 10, 2023

    But I did not dispose of any interest, I.e. sell, the partnership just dissolved which should be enough to allow the deduction.  If I indicate that I disposed of the interest TT goes on to ask when was the sale. 

    R
    RobertB4444
    March 10, 2023

    You did dispose of your interest.  You don't have it any more.  

     

    The date of the sale was the last day you did business and the sale price was $0.

     

    @Kreitzberg 

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