Ok, this is new for me, as 1065's are still a learning experience. If there is a loss on the 1065, is the loss limited by the partner's capital account? I am not required to fill out that part of the K-1 under their circumstances, so I don't know how the tax preparer for their personal would know the loss is limited by basis if so, so I'm thinking no??????
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Ok upon my research, it appears that it is the partner's responsibility to know their basis, not the K-1 responsibility. So am thinking yes, it is limited by the basis, cannot go below 0. Is that right? -
Basis can not go below zero; however, the partner's capital account reflected on the K-1 is not necessarily the basis. Also you may want to review the nature of the partner's share of liabilities as these may be a way to increase basis that is not reflected in the capital account.Comment
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That's just what I was thinking, thanks, it really helps to get a second opinion!!!! Have a good day!!!Originally posted by TXEA View PostComment
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