If a partner's share of partnership losses exceeds basis, the excess is not deductible in the current year and cannot be carried forward for deduction in the future.

Question

Quizplus · Accepted Answer

The excess loss that exceeds a partner's basis in the partnership can be carried forward and deducted in future years when the partner has sufficient basis to absorb the loss.

If a Partner's Share of Partnership Losses Exceeds Basis, the Excess