Discussion:Partnership Basis
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| Revision as of 13:13, 8 December 2005 Brandenburg Financial Inc (Talk | contribs) ← Previous diff |
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| {{ForumReplyPost|UserID=Brandenburg Financial Inc|Date=8 December 2005|Text=I agree with PGatto...Last yearI received a k-1 for a RE partnership I have an interest in with a basic of 2k when my basis was actually over 35k.}} | {{ForumReplyPost|UserID=Brandenburg Financial Inc|Date=8 December 2005|Text=I agree with PGatto...Last yearI received a k-1 for a RE partnership I have an interest in with a basic of 2k when my basis was actually over 35k.}} | ||
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| + | {{ForumReplyPost|UserID=Tonypa|Date=8 December 2005|Text=I agree with PGatto. Additionally, you should really only use the debt basis when calculating the allowable portion of PAL's and the At-Risk rules.}} | ||
Revision as of 16:11, 8 December 2005
Discussion Forum Index --> Tax Questions --> Partnership Basis
| 3 December 2005 | |
| I have a client who owns 10% of a real estate partnership. He has a negative tax basis, according to the K-1. His share of partnership debt is 200,000 more than his tax basis. What would be his basis calculation if he sells his interest. I am of a mind to add the debt to basis as the partnership rules require pro rata debt share to be deducted from the sale price. Does any body have any ideas? | |
| 4 December 2005 | |
| Use his negative tax basis against the sale price to determine the profit. | |
Hubert Altman (talk|edits) said: | 5 December 2005 |
| I agree with dzcpa | |
| 7 December 2005 | |
| I'll agree with a caveat - do not assume that the tax basis on the K-1 is correct.
It could be inside basis rather than outside basis. It could have been calculated incorrectly in any number of ways. The "GAAP", "Tax", and "704(b)" boxes were new this year and the perparer could have inadvertently checked the Tax box. I would recalculate the partner's basis before calculating the gain / loss on the dispositoin of his p'ship interest. | |
Brandenburg Financial Inc (talk|edits) said: | 8 December 2005 |
| I agree with PGatto...Last yearI received a k-1 for a RE partnership I have an interest in with a basic of 2k when my basis was actually over 35k. | |
| 8 December 2005 | |
| I agree with PGatto. Additionally, you should really only use the debt basis when calculating the allowable portion of PAL's and the At-Risk rules. | |
