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    #1

    Limited partner

    For proseries user:
    If k-1(1065), Limited partner: part II, I1 stated type of entity is this partner: individual, do you mark as some investment in partnership is not at risk. I checked as some investment in partnership is not at risk, then the loss on line 1, partIII does not carryover to next year. This client partIII, line 1 had a big loss and no other passive income to off set. Is that mean the loss is lost forever?
    Last edited by MANDAN; 03-30-2016, 09:59 AM.
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    #2
    Originally posted by MANDAN View Post
    For proseries user:
    If k-1(1065), Limited partner: part II, I1 stated type of entity is this partner: individual, do you mark as some investment in partnership is not at risk. I checked as some investment in partnership is not at risk, then the loss on line 1, partIII does not carryover to next year. This client partIII, line 1 had a big loss and no other passive income to off set. Is that mean the loss is lost forever?
    You mark some investment is not at risk if the loss exceeds basis. You should then prepare a 6198.

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      #3
      The instruction says if the tax payer is not liable to all debt, then mark as "not all investments are at risk". Since limited partner is only liable for the debt up to his investment in the partnership. I did not realize it has to do with his basis. Can you enlighten me?
      Originally posted by kathyc2 View Post
      You mark some investment is not at risk if the loss exceeds basis. You should then prepare a 6198.

      Comment

        #4
        Originally posted by MANDAN View Post
        The instruction says if the tax payer is not liable to all debt, then mark as "not all investments are at risk". Since limited partner is only liable for the debt up to his investment in the partnership. I did not realize it has to do with his basis. Can you enlighten me?
        The passive loss carry-forward is limited to the basis amount. Say his basis is 5K at the beginning of the year. That is all he has at risk. Then say his share of the loss is 15K for 2015. Since all he has at risk is the 5K that is all he is allowed to carry forward. The additional 10K of loss poses no economic loss to him. If you aren't putting his basis on the 6198 Pro does not know he has any basis and will not produce a carry-forward.
        Last edited by kathyc2; 04-01-2016, 08:19 AM.

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