Need PTP Help

[TAXBILLY]

Have a client who has a PTP. Looking at the capital account at the bottom left of the K-1 I notice that the beginning was a positive $745 and the end was a minus $1251. Does this mean he has taxable gain?

taxbilly

[JRS]

I have used this as an information only box. Theoretically, according to the IRS, you can figure your actual basis using their worksheet from Box L. Most of my clients that have these could care less what their basis is until they sell some or all. Then the PTP will send a worksheet with the year end K-1, so you can figure your gain,loss and ordinary gain.

Below is a quote for Box L, from a PTP that I own in my own accounts.

"This analysis is based on the information shown on your Ownership Schedule. Please note that this tax basis capital account balance bears no relationship to, and is not indicative of, the fair market value of your investment"