Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
Hello, I would like to help you with your question. Could you expand a little bit on your question. For instance, I am assuming this is a partnership? If so, your capital account should be on your K-1, Section L. This is your basis before liquidation. As you stated this was the "final" K-1, has there been a liquidation?
It sounds like your basis is zero based on the facts communicated. If your previous equity was negative, you probably had a loss that you reported in the prior year. As you current year is zero, they recorded just enough profit to clear the partnership capital accounts. I would assume there was some income then reported on your partnership K-1 in the current year?
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