Outside Basis

[Kram BergGold]

I posted some issues about outside basis a week ago or so. I have resolved the issues as to the amount to deduct upon the ending of the partnership. Now the question is, is the outside basis which results in a loss a capital loss on Schedule D or an ordinary loss on Form 4797. My first impulse was a 4797 loss but now I am thinking it is a capital loss on Schedule D.

[dsi]

I would say you have a capital loss on your hands.