K-1 from Limited Partnership

[S T]

I have a K-1 form marked "Tax Basis" - Through 2014 - Basis matches

For 2015 When I add the item entries for income/loss it equals (9,553), K-1 reports under Partner's Capital Account Analysis as (9,183), 370 difference which affects my Basis Worksheet

Requested explanation from Partnership and they respond that it is a book to tax difference - interest expense deducted in 2015, but accrued for book purposes in prior years.

How to handle for input for Basis and 6198 form

Thanks

Sandy

[Roland Slugg]

Apparently, the p'ship must have prepared the 2015 K-1 based on book income, which is accrual method, whereas prior years' K-1s were prepared using the tax basis, which, apparently, uses the cash method. Look at the box checked at item L on the K-1. I can't recall a p'ship ever switching like that for K-1s.

In any case, use the $$$ reported on the K-1, and use the same amounts in figuring the partner's tax basis. Remember, his basis includes recourse debt as well as qualified nonrecourse debt.

[S T]

Thanks Roland
Year 2014 K-1 - is Tax Basis and does show as that on the K-1 along with item K non recourse of 339 and Qual non recourse of 12,094

All of 2014 matches just fine with the Partners Capital Accounts

Year 2015 - nothing under Item K - Partner's share of liabilities, still reporting Tax Basis Box checked - Ending capital account off by 370 as mentioned above.

This LLC went into foreclosure in 2015, and will be final in 2016 according to the letters received

I am just trying to report correctly on the year 2015 Tax Return for the Member/client - to capture the needed losses in 2016, I have carryforward and suspended losses on this Members Partnership Investment, that should be released on final K-1 in 2016.

[Greenbriar]

Where to report the loss

I'm curious about where to report the loss on the sale of a limited partnership. I have to see a client next week who says his 30,000 investment in a limited partnership has dwindled down to worthless. Does he get a 1099B or just a k-1 with zeros? I'm obviously not familiar with this situation. Thanks.

[TAXNJ]

If not familiar....

I'm curious about where to report the loss on the sale of a limited partnership. I have to see a client next week who says his 30,000 investment in a limited partnership has dwindled down to worthless. Does he get a 1099B or just a k-1 with zeros? I'm obviously not familiar with this situation. Thanks.

see IRS pub 541 should address your specific scenario. Think some reading before you meet with the client.

Also: https://www.irs.gov/businesses/small...d/partnerships

[Greenbriar]

Thanks, that's what I'm doing.