Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-10-2014, 05:47 PM
Junior Member
 
Join Date: Feb 2014
Posts: 2
Final K1 Capital Gain

My final K-1 from a limited partnership shows an ending capital account balance of $20,000. My understanding is that that is a long term capital loss. My question is where do I enter it onto the tax return?

Thanks,

jnix



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-11-2014, 12:28 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
Quote:
Originally Posted by jnix View Post
My final K-1 from a limited partnership shows an ending capital account balance of $20,000. My understanding is that that is a long term capital loss. My question is where do I enter it onto the tax return?

Thanks,

jnix
in a LP, each limited partner has a separate capital account for their allocated investment and distribution of profits; the partnership must provide a K-1 form to all its partners outlining the partner's year end capital investment, any distributions or losses and remaining capital balances. Capital account of each partner represents his equity in the partnership. The beginning capital account, withdrawals and distributions, and ending capital account balance amounts are needed to calculate your basis in the LP. The amount of $20k loss will not have an effect on your individual's return as long as the partnership is not passive income to you and as long as you are a partner in the partnership. The basis amount will be helpful in calculating the gain/loss in case you decide to sell your partnership share.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 02-11-2014, 10:52 AM
Junior Member
 
Join Date: Feb 2014
Posts: 2
K-1 Capital Gain

I am a passive partner and the partnership has dissolved.

jnix



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 02-11-2014, 10:28 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
Quote:
Originally Posted by jnix View Post
I am a passive partner and the partnership has dissolved.

jnix
in a LP, each limited partner has a separate capital account for their allocated investment and distribution of profits; the partnership must provide a K-1 form to all its partners outlining the partner's year end capital investment, any distributions or losses and remaining capital balances. Capital account of each partner represents his equity in the partnership. The beginning capital account, withdrawals and distributions, and ending capital account balance amounts are needed to calculate your basis in the LP. The amount of $20k loss will not have an effect on your individual's return as long as the partnership is not passive income to you and as long as you are a partner in the partnership. The basis amount will be helpful in calculating the gain/loss in case you decide to sell your partnership share.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
capital gain,advance tax & tds satish Capital Gains 1 11-05-2013 05:10 AM
income tax-Capital Gain abeedbasha Capital Gains 0 09-13-2013 10:55 AM
capital gain naveen gehlot Capital Gains 0 02-25-2013 07:22 AM
Why is it beneficial to sell Capital Assets that would have a taxable capital gain in 2012? TaxGuru For 2012 1 12-05-2012 05:13 AM
capital gain jiten solanki Capital Gains 3 01-05-2011 03:56 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning