The losses are lost. Losses suspended due to basis are not freed up until the partner injects more capital or has pass-through income which would increase basis. If it is the partner's final year, the partner cannot possibly inject more capital in later years and the losses expire unused [§704(d)].
The taxpayer is a partner in a partnership. He has suspended losses due to basis limitations. He received a final K-1. Is the taxpayer allowed to use the suspended losses due to the basis limitation or are they lost?
Modified on: Sun, 5 Feb, 2017 at 9:11 PM
Did you find it helpful?Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.