#704(d)

[cpasean]

Schedule K-1

[2.22.24] For the purpose of considering distribution in excess of basis, the use of the nonrecourse debt may be limited for calculating the basis.

704(d) Tax Basis - Tax basis capital plus the partner's share of debt (both recourse and nonrecourse)

Line 13H: Need to separately report "investor activity" and "business activity"

[cpasean]

Partnership Loss Limitation

[11.11.2023] § 704(d)

What is the partnership loss limitation?

The amount of partnership loss (including capital loss) that a partner may recognize is limited to the amount of the adjusted basis (before reduction by the current year's loss) of the partner's interest in the partnership at the end of the partnership tax year in which the loss occurred.