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PTP K-1s basis Adjustment

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    PTP K-1s basis Adjustment

    PTP K-1s basis Adjustment schedule upon the sale of an interest gives you a schedule that shows the adjustment that has to be made to the original cost basis. Can the net be a negative number? Lets say a partnership borrows money from a bank and distributes it to the partners. I realize that when a distribution exceeds a cost basis then there is recognized capital gains which ups the basis. Presumably the loan also give the partner a higher basis, unless the loan is a nonrecourse non-real estate loan. I have never had this problem but I might. Calling the PTP yielded no answers..

    See TTB 20-13 to 20-17 (Basis and adjustments, etc).

    See if that helps and repost.
    Last edited by TAXNJ; 07-13-2021, 04:17 PM.
    Always cite your source for support to defend your opinion