CPA Advice in Scottsdale: Can I write off my worthless partnership Investment?

Can I write off my worthless partnership Investment?

The write off of “worthless” partnership interests are very intricate.

What are the key questions my CPA should ask me?

  • Am I being relieved of any debt whether it is debt that I have guaranteed or real estate that the partnership has guaranteed on my behalf?
  • Do I have a positive basis on the most recent K-1 from the partnership?
  • Have I received any money from the partnership in the current year?
  • Has the partnership been sold before I abandoned my partnership interest?
  • Am I sure that the loss will be an ordinary loss and not a capital loss?
  • Am I the original owner of the partnership or did I buy my partnership interest for more or less than what the partnership showed as the basis of the partnership interest?
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Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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