sjrcpa
Level 15

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.