K-1 from LP

[Marie]

TP sold interest in LP. K-1 has no figures except box marked final K-1. There are no figures anywhere. I do have unallowed losses from previous years. How and where do these losses go? I think losses are allowed when interest is sold out? These losses are in my software, I just can't figure out how to get them to flow. Since this was sold, should there be a 1099B for this? I hate these things!

[Abby Normal]

Check boxes for final disposition of PTP and final K1. Also, the gain/loss should be on a 1099-B from their broker. AND the K1 should have a statement showing you how much of the gain is ordinary and needs to go on 4797 part II. If AMT is an issue, there is a number on the K1 attachments for that as well.

[Marie]

I did check the box as final k-1 and nothing has flowed, I've looked everywhere, searched bunny hopped with no luck. Also no 1099B was given to me, I guess i'll have to call and have her check with her broker.

[Marie]

Sorry, I marked final K-1, where is the final disposition box I should mark?

[Catherine]

Watch for corrections to basis, too.  Many times one of the addendum pages on the K-1 has corrections to basis that need to be incorporated.

[Marie]

hardly any extra pages, and none of them have any numbers. this was inherited from her mother, so she knows nothing either.

[Margaret CPA in OH]

In ATX, complete disposition of passive activity or ptp is just above the final K-1 box on the K-1 (1065) input sheet.

[Randall]

I was just going to post a question on this, a little different.  Mine is not a final disposition.  I marked PTP.  Loss in K1 box 1 is suspended.  Not showing up on a form, just in the PTP summary schedule.  Is this correct?  If passive activity marked, it shows up on 8582.  But can't mark both PTP and Passive Activity (one or the other).  K1 shows plenty of capital (tax basis).  Does being PTP preclude it from being a passive activity.  Yet the loss is still suspended so I assume it is in real terms, a passive activity.

[joanmcq]

Don't check the passive box if they sold the activity.

And don't use the broker basis for one that is sold. Every one I've seen only uses what they paid for the PTP, and doesn't take Into account the income and distributions that have occurred.

[Randall]

Joan, activity not sold.  I was wanting to confirm that PTP box is checked and not the passive box.  With passive checked, loss goes to 8582.  With PTP checked, loss doesn't go to a form, just a worksheet.

[joanmcq]

PTP. The losses can only net against that particular PTP, not other passive losses.

[DougO]

You have suspended losses from a PTP and it just carries over on the worksheet till next year or when you have profits or sell the activity.  Nothing should go from this to 8582.  When you sell it the suspended losses (if the proper boxes are checked at the top of the input screen) will flow to page 2 Sch E.

[Randall]

Thanks everyone.