albertng
Level 2
‎09-04-2023 01:30 PM

In ProSeries, how to enter Final K-1 when there is no sale of partnership interest. However, partnership converted into corporation and no disposition of assets.

Also how the partnership suspended carry-forward losses be keep tracked to offset future capital account gain since corporation doesn't issue K-1s?

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Terry53029
Level 15
Level 15
‎09-04-2023 02:33 PM

When you convert a partnership to a corp. you liquidate the partnership, and if you had suspended losses due to basis limitation I believe you lose the suspended loses

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sjrcpa
Level 15
‎09-05-2023 12:50 PM

I would not mark it final in  the software.

If they are passive losses, after you complete the return, keep track of them outside of the software for if and when client disposes of the stock. Delete the K-1 in next year's software.


The more I know the more I don’t know.
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albertng
Level 2
‎09-05-2023 03:06 PM

Thanks for the workaround solution.

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