Solved
Partership basis limitaton in a partnership
I prepare a return for Partnership ABC. This partnership has two partners John and Mary who each contribute 1 million dollars. Subsequently Partnership ABC contributes $100,000 to Partnership XYZ. I am preparing the return for ABC and it recived a K1 from XYZ that has a loss of $120,000 in excess of the basis (100,000) that ABC contriibuted. There is no debt basis. How do I (should I?) limit the loss on partnership ABC because it only invested in 100,000 in XYZ.
