michaelmars Posted October 3, 2013 Report Share Posted October 3, 2013 if a partners shares of an LP are diluted is that deemed a sale? In this case the partner had neg basis of 200,000 but qualified nonrecourse debt allowed him to take the losses. Now with the change, the capital account is still negative since that didn't change $205,000 with the current activity but the qualified nonrecourse debt is only $50,000. I know the current years losses aren't deductible but is there actually a capital gain to report? [no distributions were made] Quote Link to comment Share on other sites More sharing options...
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