swongtax
Level 4
12-07-2019
06:15 AM
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The basis is clearly the initial investment $500K, but what is the selling price? Is it the withdrawal plus the ending capital? taxpayer is told that this is her last year in the partnership and she will not receive a K-1 next year.
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sjrcpa
Level 15
12-07-2019
06:15 AM
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"The basis is clearly the initial investment $500K" is incorrect. That was the basis on the day they invested.
Ex-AllStar
swongtax
Level 4
12-07-2019
06:15 AM
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Thanks for the message. I just did some more research. You are correct, there are increases to decreases to the basis each year and the numbers can be found on the historical K-1 forms. I was able to follow these instructions and came up with an final adjusted Cost basis.
