Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Final k-1 for partnership that discontinued operations. Why doesn't this free up suspended losses?

SuePing
Level 1
 
Labels (1)
0 Cheers
2 Replies 2
jeffmcpa2010
Level 7

Why were they suspended? due to lack of Basis? or due to Passive Loss Rules.

If lack of Basis - unless additional Basis was created they would not be allowed.

If Passive - they should now flow through.

SuePing
Level 1

Thanks for your response.  The losses were suspended due to the passive loss rules, so they should have been freed up upon liquidation of the partnership.  I found out I had to complete a separate part of the form and indicate if the partnership interest was sold, abandoned or liquidated in order to trigger the losses.  So, problem was solved.

Appreciate your interest.

 

0 Cheers