Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have a partnership with a loss that exceeds my capital…

Customer Question
I have a partnership...

I have a partnership with a loss that exceeds my capital contribution? How do I treat this on my tax return? I'm using HR Block?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Thats all i got

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I'd like to know how to make the adjustment or override the information...

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Customer reply replied 3 months ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer reply replied 3 months ago
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Answered in 24 minutes by:
3/31/2018
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,085
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from Just Answer. I'mCustomer and can assist.

Ask Your Own Tax Question
Customer reply replied 3 months ago
I do not want premium phone call. Please addreess question on line...
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago

If your losses exceed your original capital contribution, those losses are generally suspended until you have basis (capital invested).

You can increase the amount of deductible losses if you have money at risk in the partnership. At risk money is loan guarantees or other financial guarantees you have made, like for a mortgage or business debt you are personally liable for. That excess commitment creates at risk limitation, which would allow you to deduct additional losses up to the extent of your basis, then at risk.

So, check your commitments, often found on K-1 of the partnership, to see if you have any share of recourse (liability extends to you) liabilities. if you do, then you can deduct additional losses.

Thanks for asking at Just Answer. Positive feedback is appreciated. I'mCustomer

Ask Your Own Tax Question
Customer reply replied 3 months ago
I have no other liabilities so I'd like to adjust the information to take the exact loss as my capital contribution. How do I make this adjustment?
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago

I don't understand. The partnership had a loss in excess of your basis.

The partnership reports the loss in total, generally on line 1 of 1065.

Basis information is presented on Part II of the form. You can't fix the loss amount on the K-1. It is a 1040 adjustment.

Customer/p>
Ask Your Own Tax Question
Customer reply replied 3 months ago
In part ll I need to adjust the amount of the .nonpassive loss to my capital contribution amount? Right
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago
No. Report the full loss there. The partner applies the limitation once they get the amount.
Ask Your Own Tax Question
Customer reply replied 3 months ago
Sorry I don't understand "once they get that amount"....where would I make the adjustment? Specifically...
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago
You don't make any adjustment at the 1065 level. You simply report the loss. Basis reporting, and at risk (recourse and nonrecourse lending) amounts are provided for the partner to do their math.You do not adjust the reported loss on the k-1 for what you believe to be basis or at risk limitations. Let me give an example of why.Partner A sells his interest to new partner A2. A2 paid less than A's inside basis. A2 can not rely on the partnership records of inside basis, since it is not changed for this sale.
Customer
Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,085
5,085 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
But I talked to a finacial advisor, but I am not convinced
hi, My name is*****: Have you talked to a tax professional about this? Customer: yes, but I talked to a finacial advisor, but I am not convinced with his answer. … read more
Carter McBride
Carter McBride
LLM
1,186 satisfied customers
I got a mail Social Security with the amounts in it. Part of
I got a mail Social Security with the amounts in it. Part of it was the part that showed it deducted with the entire parts. The Return was the 2017 Return. However, the accountant included the rest bu… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I HAD MY 2016 TAXES DONE BY HR BLOCK. I HAD HEALTH INSURANCE
I HAD MY 2016 TAXES DONE BY HR BLOCK. I HAD HEALTH INSURANCE FOR 6 MONTHS. MY DAD PASSED AWAY IN 2016. SO THEY SAID I MIGHT BE ABLE TO GET A HARDSHIP EXEMPTION. I APPLIED AND I WAS SENT A EXEMPTION CE… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I am retired. No employer. Not self employed. In 2017 I went
I am retired. No employer. Not self employed. In 2017 I went to a conference and covered it as a freelance writer for a digital publisher. I got reimbursed for my expenses of 1014,46 and received a 10… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,465 satisfied customers
We are doing our income tax using H&R Bolck software and it
We are doing our income tax using H&R Bolck software and it is saying we did not draw enough money from our retirement account. This is wrong according to our IRA Kingdom Trust IRA company. We need he… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
I am atex prepiaeder i mage a mistake on address how can i
i am atex prepiaeder i mage a mistake on address how can i change it … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I am hoping there is a CPA or Tax Attorney who is able to
Good Morning, I am hoping there is a CPA or Tax Attorney who is able to assist. We have a company that is a Sole Member LLC currently formed in Texas in 2016 and is operated out of half of our owners … read more
Carter McBride
Carter McBride
LLM
1,186 satisfied customers
I must pay my quarterly payment on Sept 15.2017. However I
I must pay my quarterly payment on Sept 15.2017. However I don't have the form to send with it . My tax person HR Block did not include it when my tax was completed for this year. I know how much I ne… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
U have been doing my taxes for a number of years. Got a
Got a corrected tax return from big brother 2015. Where can I contact H&R in off tax season ? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
We have been told that our combined income is too high to
Hi We have been told that our combined income is too high to qualify for a roth ira and we can contribute to a backdoor ira how much tax would we pay if we opened a 5500 traditional ira for 2016 and c… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
I have a question regarding taxes for myself and children.
Hello, I have a question regarding taxes for myself and children. We are military survivors, so I would like some help regarding this in particular. Who do I speak to about this? Thank you.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My elderly mother sold her house and since all her children
my elderly mother sold her house and since all her children were on the deed, we all get a substantial payout. We will get a 1099 for this year. How will this affect my taxes? Do I need to save out a … read more
Expert
Expert
4 satisfied customers
I bought a car cash, and it was put in my girl friends name.
I bought a car cash for 63000, and it was put in my girl friends name. it was bought in 1/5/2015 then in oct 2015 i bought her a car for 20000 that is 83000. we are at odds and she is using the cars a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I owned a 2% stake in a company which sold late last year.
Hello,I owned a 2% stake in a company which sold late last year. The accountant at the company said I should consider the proceeds long term capital gains. I was also told this is not reflected on the… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Have been trying to file form 1045 carryback to 2012 Believe
have been trying to file form 1045 for loss carryback to 2012 Believe have all the answers, except form 6251 line 11, alternative tax Net operating operating loss deduction, no AMT in loss year… read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
I got an audit notice, I sent in the documentation but
I got an audit notice, I sent in the documentation but realized I sent a charity document in error that may be interpited as fraud. Can I call them to have it removed?… read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
A LLC filing taxes as a partnership . If one of the
A LLC filing taxes as a partnership for 2014. If one of the partners invested 25,000 and the other two invested no capital but they are 33% 33% and 34% partners how should the 25,000 have been entered… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,085 satisfied customers
I need a tax professional..or lawyer i think..i already received
i need a tax professional..or lawyer i think..i already received my federal refund..but now im going to amend my return and take the standard deduction..so now i owe ..when they get my amended return … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x