1120-US: Partner's Basis Worksheet - Calculation of basis limitation

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Question

How does the Partner's Basis Worksheet calculate the basis limitation on the deductibility of a partner's share of partnership losses?

Answer

A partner's distributive share of partnership loss is allowed to the extent of the partner’s basis in the partnership interest. Losses and deductions not allowed this year because of the basis limit are carried forward indefinitely and deducted in a later year subject to that year's basis limit.

Related topic: Partner's Basis Worksheets FAQs

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