sjrcpa
Level 15
04-08-2022
11:15 AM
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You can't have negative basis, that's why.
Basis in a partnership is not purchase price. It starts with that, then you need to add all K-1 income through the years and subtract all K-1 losses, deductions and contributions.
Your client has income upon the disposition. Looks like 82,312 ordinary and 5,624 capital gain.
The more I know the more I don’t know.