Hi all,
A client has a K-1 showing that he is a Limited Partner in a Publicly Traded Partnership.
What I think that I want to do is populate the taxpayer's Partner's Basis Worksheet, but I do not seem to be able to do this.
Using ATX, I go to Form K-1 (1065), Tab 'Input', and I check the 'Calculate basis limitation' box as well as the 'Calculate at-risk limitation' box. I can enter Cash Contributions into the Basis Limitation section, only when the 'Publicly traded partnership' box is NOT checked. Once I check it, poof!, the Basis Limitation section disappears and the Basis worksheet is all zeros.
Does this mean that limited partner interest in a PTP will never have an outside basis? There are capital contributions reported on the Partner's Capital Account Analysis of his K-1.
Thank you.