1120-US: Partner’s Basis Worksheet - Losses and deductions included in the basis limitation

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What losses and deductions are included in the basis limitation of the partner's share of partnership losses?


Regulation 1.704-1(d)(2) specifies the loss and deduction items of sections 702(a)(1), 702(a)(2), 702(a)(3), 702(a)(7), and 702(a)(8) are included in the losses of the partnership. The following is a list of those losses.

Not included in the losses of the partnership are 702(a)(4) charitable contributions and 702(a)(6) foreign taxes. These items are excluded in section 703(a) taxable income of partnerships. A partner’s deduction of these items is not limited by the basis of each partners’ interest in the partnership, but they do reduce the basis of the partner’s interest.

Related topic: Partner's Basis Worksheets FAQs

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