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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