I have a situation where, for example, I have $100,00 passive carryover loss which accumulated from losses from a rental partnership. The partnership (buildings) was sold and there is a $40,000 capital gain reflected on the K-! which used up $40,00 of the loss carryover. Is the remaining $60,000 loss or remain to still be used against passive losses in the future? If it were on a schedule E I would be able to deduct it all since the buildings were sold. How do I handle it in this situation. I'm using a program and it didn't make that adjustment.
Paasive Carryover
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kathyc2 - I apologize for the misspelling and inconsistencies with the numbers. s/b 40,000 and 100,000. Yes and partnership is dissolved and B/L zeroed out. Capital accounts were -110,000.
TAXNJ - I don't know what that is.Comment
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if so look at tab 12 in addition to 7-8Always cite your source for support to defend your opinionComment
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kathyc2
Thank you I found the worksheet. Would you tell me what happens to the negative Capital Account Balances at dissolution? No distributions were ever taken since the partnership operated at a loss for all years.Comment
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kathyc2
The cash was received from the capital gain from the sale and reported on the k-1, which is reported on the personal return.Comment
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