turbotax and club disbanding

Donald Smith on

My club is closing, which changes how you input data into
Turbotax. There are large capital losses that do not appear
on the K-1 under 8 or 9a. They occur because the beginning
capital account in section L of the K-1 is larger than the
withdrawals and distributions (with ending capital account
being 0). I am inputting the capital loss (shown on the K-1
in section L) under ordinary gain on the page labeled:
"enter sale information" in Turbotax, which is why it is
bypassing the $3,000 loss limit. I think this might be
incorrect. Does the loss go under long term capital gains
on schedule D or form 4797 "sale of business property"? If
anyone knows the answer I would be most grateful.

ira smilovitz on

You're doing this all wrong. You enter your K-1 as you would normally. using only the information in Part III.

You enter information from your withdrawal report on Form 8949 as code F (long-tem no 1099-B), "disposition of partnership interest", purchase date [date you joined club], sale date [date you withdrew], proceeds = cash + basis in shares received (Item B on withdrawal report), cost basis = adjusted tax basis in club (Item A on withdrawal report).

Ira Smilovitz

On Thu, Apr 11, 2024 at 12:15 PM Donald Smith via bivio.com <user*1987800001@bivio.com> wrote:

My club is closing, which changes how you input data into
Turbotax. There are large capital losses that do not appear
on the K-1 under 8 or 9a. They occur because the beginning
capital account in section L of the K-1 is larger than the
withdrawals and distributions (with ending capital account
being 0). I am inputting the capital loss (shown on the K-1
in section L) under ordinary gain on the page labeled:
"enter sale information" in Turbotax, which is why it is
bypassing the $3,000 loss limit. I think this might be
incorrect. Does the loss go under long term capital gains
on schedule D or form 4797 "sale of business property"? If
anyone knows the answer I would be most grateful.

Donald Smith on

thank you for your rapid response. I received 3 withdrawal
reports in 2023. If I add up "(A) adjusted basis" from all
three reports and subtract the sum of all three amounts of
"(B) members cost basis of property distributed", it is a
much larger loss than what is shown on my final full
withdrawal report where "Gain/(Loss) Realized on Withdrawal
(B)-(A)" is calculated by Bivio. If I use the information
from section L in the turbotax software, it does populate
the loss into Form 8949, but adds the net profit on my
withdrawal report in the "tax allocations" section to the
final amount. This doesn't seem fair, as I am already
paying taxes on the profit, and then I lose some of the
capital loss when it is added to the final gain/(loss)
realized on withdrawal

ira smilovitz on

You need to be sure that the withdrawal reports you are using were generated at year end as there can be changes. As a tax professional with the 4/15 deadline looming for my paying clients, I can't devote more effort to this until after the filing deadline.Send this to Support@bivio.com.

Ira Smilovitz

On Thu, Apr 11, 2024 at 8:30 PM Donald Smith via bivio.com <user*1987800001@bivio.com> wrote:

thank you for your rapid response. I received 3 withdrawal
reports in 2023. If I add up "(A) adjusted basis" from all
three reports and subtract the sum of all three amounts of
"(B) members cost basis of property distributed", it is a
much larger loss than what is shown on my final full
withdrawal report where "Gain/(Loss) Realized on Withdrawal
(B)-(A)" is calculated by Bivio. If I use the information
from section L in the turbotax software, it does populate
the loss into Form 8949, but adds the net profit on my
withdrawal report in the "tax allocations" section to the
final amount. This doesn't seem fair, as I am already
paying taxes on the profit, and then I lose some of the
capital loss when it is added to the final gain/(loss)
realized on withdrawal

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