Hello everyone!
i am working on a 1040 return where the k1 has distributions in excess of basis. I am taking the excess amount as LTCGs. I was wondering if i can take the same amount as "contributions to basis" since that amount is being taxed?
Thanks for your time.
Best Answer Click here
This discussion has been locked. No new contributions can be made. You may start a new discussion here
Indirectly that's already what you're doing. Say you have a $10K distribution in excess of basis. Normal distribution rules would have you deduct the $10K from the basis of $0, leaving you with a basis of -$10K. By correctly reporting this on Schedule D, you are adding $10K to the basis of -$10K to bring it up to $0.
Indirectly that's already what you're doing. Say you have a $10K distribution in excess of basis. Normal distribution rules would have you deduct the $10K from the basis of $0, leaving you with a basis of -$10K. By correctly reporting this on Schedule D, you are adding $10K to the basis of -$10K to bring it up to $0.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.