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Final K-1

karzak
Level 3

Taxpayer has a final K-1 partnership.  Did not sell.  Just closed and stopped doing business.  Partners were brother and sister.  They had the business for 3 years.  Never made a profit.  Each put in $7500 start-up.  Only info on the K-1 is Ordinary loss ($402).  Receiving error in part 2.  Would this be considered a liquidated or abandoned? Just by checking abandoned, it frees up over $9000 in suspended loss carryover.  Do this seen right?

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jeffmcpa2010
Level 11

Correct the beginning capital of the first year should be 0.

What they put in should show as Contributions on the Capital portion of the K-1.

There was nothing when they started - then they put it in.


Ukraine - hang in there #StandWithUkraine

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5 Comments 5
sjrcpa
Level 15

Why were the losses suspended?


Ex-AllStar
karzak
Level 3

passive loss rules

PATAX
Level 13

Did he already receive a deduction for the 7500 in the $9,000 loss? Just asking not sure... Just my opinion

karzak
Level 3

ok.  Now I am a little confused.  Taxpayer claims they put out $15,000 initially/$7500 each. Found Initial K-1 and it  has beginning capital account as zero.

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jeffmcpa2010
Level 11

Correct the beginning capital of the first year should be 0.

What they put in should show as Contributions on the Capital portion of the K-1.

There was nothing when they started - then they put it in.


Ukraine - hang in there #StandWithUkraine
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