sjrcpa
Level 15
04-11-2020
07:07 PM
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Compute the basis yourself and calculate the allowable loss. Enter the allowable loss in the partnership return. Maintain a schedule for your file showing loss in excess of basis for next year. Remember that capital account balance is hardly ever basis.
You'll have an M-1 adjustment for book loss/tax loss difference.
The more I know the more I don’t know.