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Level 3
March 14, 2023
Question

reporting minimum gain situation on partnership k-1

  • March 14, 2023
  • 1 reply
  • 13 views

When a real estate partnership with non recourse debt goes into a minimum gain situation in a year how are losses allocate and reported on k-1 as non deductible

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1 reply

sjrcpa
Level 15
March 14, 2023

The Operating Agreement tells how to do the allocations.

What do you mean by report as nondeductible on K-1?

The more I know the more I don’t know.
hockeyguyAuthor
Level 3
March 14, 2023

It is my understanding that losses allocated to an LP in a year when a partnership is in a minimum gain situation is suspended and not currently deductible by the partner personally in that year  

sjrcpa
Level 15
March 14, 2023

I'm not familiar with that.

Deductibility at the partner level is determined by at risk, basis, and passive loss rules.

The more I know the more I don’t know.