Limited Partnership Adjusted Tax Basis


S

SteveJ

I have been a passive investor of a limited partnership
"other rental" that ended in 2005 and I have a few questions
on calculating the tax basis so I can determine if I have a
capital gain or loss. Is this the correct way to calculate
the adjusted tax basis:

- Start with original investment
- Add or subtract line 3 from K-1(Other rental net
income (loss)
- Add line 5 from K-1 for Interest income
- Subtract distributions received during the year.
- Do above for every year I have owned the partnership.

If I have a loss (my adusted tax basis is greater than my
final distribution), what form do I enter this on? I have
had this investment for 10 years.

Anything I need to be careful about in the calculation?
 
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