Partner in K1 (1065) has no amounts at risk. Passive loss not allowed due to no amount at risk (also no income in prior years). Should the box be checked in column F for “check if any amount is NOT at risk”. I would think yes, but maybe is it not getting checked since no losses are allowed so it’s just disregarding that box?
You were right.
Client is gifted non voting shares each year. She is getting me in touch with accountant who prepares the K1.
in short - this means she DOES have amounts at risk (her non voting shares) correct?
So the box in column F will not be checked. However we need to track her amounts at risk and her basis (which the accountant should have).
Am I missing anything? Thank you so much for your responses! This forum is so helpful.
Wait to receive the details from the accountant who structured all that and then verify whether you agree with his/her opinion. That would be my starting point.
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