Get ordinary loss on your investment in a partnership. CPA in Scottsdale

Get ordinary loss on your investment in a partnership. Abandonment Losses can save you a lot of tax!

By Jeffrey Brooks, CPA, CFP, MBA for JBrooks Wealth Advisors, PC, a Professional CPA and CFP Firm  jeff@jbrookswa.com  602-292-2009  Please consult with your professional tax CPA regarding your specific circumstances!

 

Jeffrey Brooks, CPA, CFP, MBA 602-292-2009

 

 

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?

Maybe I have the opportunity to get special treatment for an Abandonment of a partnership interest.  What are the advantages of Abandonment? You can get ordinary loss treatment instead of capital gain treatment!

THERE ARE MANY RULES YOU MUST FOLLOW TO GET ORDINARY LOSS TREATMENT ON THE ABANDONMENT OF A PARTNERSHIP THAT YOU HAVE AN OWNERSHIP IN.

 

 

 

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About Jeffrey Brooks

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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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com