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Final k-1 for partnership that discontinued operations. Why doesn't this free up suspended losses?

Level 1
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Level 11

Why were they suspended? due to lack of Basis? or due to Passive Loss Rules.

If lack of Basis - unless additional Basis was created they would not be allowed.

If Passive - they should now flow through.

Level 1

Thanks for your response.  The losses were suspended due to the passive loss rules, so they should have been freed up upon liquidation of the partnership.  I found out I had to complete a separate part of the form and indicate if the partnership interest was sold, abandoned or liquidated in order to trigger the losses.  So, problem was solved.

Appreciate your interest.


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