Taxpayer has a final K-1 partnership. Did not sell. Just closed and stopped doing business. Partners were brother and sister. They had the business for 3 years. Never made a profit. Each put in $7500 start-up. Only info on the K-1 is Ordinary loss ($402). Receiving error in part 2. Would this be considered a liquidated or abandoned? Just by checking abandoned, it frees up over $9000 in suspended loss carryover. Do this seen right?
ok. Now I am a little confused. Taxpayer claims they put out $15,000 initially/$7500 each. Found Initial K-1 and it has beginning capital account as zero.
Correct the beginning capital of the first year should be 0.
What they put in should show as Contributions on the Capital portion of the K-1.
There was nothing when they started - then they put it in.
0
Cheers
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