IRS LB&I Active Campaigns: Partnership Losses in Excess of Partnership’s Basis (IRC §705)

Active campaign related to partnership losses in excess of partnership’s basis added Feb. 8. Partners that report flow-through losses from partnerships must have adequate outside basis as determined pursuant to I.R.C. §705 to deduct the losses or else the losses are suspended per §704(d) to the extent they exceed the partner’s basis in the partnership interest, the IRS stated. [LB&I Active Campaign: Partnership Losses in Excess of Partnership’s Basis Campaign]

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