My question is simple enough, but I've been unable to get a straight answer, even from so called 'tax professionals'.

Q. What items of the IRS basis adjustment worksheet in the "Partner's Instructions for Schedule K-1 (1065)" on page 2 do I use to adjust the basis of my PTPs?

IRS Pub 541 does not indicate there are special rules for PTPs, while Pub 925 and the instruction for the 8582 and Sch E do have 'special instructions for Publicly traded partnerships' but only talk about 'at risk' and 'passive limitations'. One tax guide says to use items 1, 2, 7 and 12 of the worksheet only for PTPs. Indicating that only the distributions, K1 box 19 adjust the basis for PTPs, and yet the IRS Partner's instructions do indicate K1 box 18 items if present are also used to adjust the basis..

I need a simple answer for this simple retail investor of PTPs.

1 Answer 1


My answer is to hire a tax accountant or practice in tax accounting for years. This is not a simple concept. If you want to calculate your basis then google calculate my basis in a partnership. You will be increasing by contributions and income and decreasing by expenses and distributions. If you want to calculate the amount that goes on schedule e, then you would take specific like items from your K-1 to get a calculation then you would have to take into account passive loss limitations. Furthermore, if you have recourse loans you may be at risk and need to limit your deductions and carry them over to future years. Hope this was simple enough.

  • 1
    From the tone of the question, it seems likely to me that the OP has already exhausted a simple Google-search, and in any case, telling them to do so doesn't amount to a useful answer.
    – TripeHound
    Commented Apr 13, 2018 at 6:50

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .