Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

How does a partnership limit losses a K-1 it received from another partnership

info2
Level 1

How does a partnership limit losses on a K-1 it received from another partnership. 


Partnership A has a 23% interest in Partnership X; 

Partnership X gives Partnership A a K-1 for a loss, with a capital account reduction equivalent to the loss. The loss ought to be limited since the A's basis in X is essentially 0. How do I limit it in the software for 1065's. 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
sjrcpa
Level 15

I believe in ProSeries you limit it by entering only the allowable loss. Then keep a side schedule of the loss in excess of basis for use in future years.

The more I know, the more I don't know.

View solution in original post

0 Cheers
2 Comments 2
taxiowa
Level 9
Level 9
You do not limit loss at partnership (1065) level.  That is done by the partners when they file.  If you are sure they have no basis, then you can attach a note to K1's that partner's basis may not be sufficient for this years loss.
0 Cheers
sjrcpa
Level 15

I believe in ProSeries you limit it by entering only the allowable loss. Then keep a side schedule of the loss in excess of basis for use in future years.

The more I know, the more I don't know.
0 Cheers