Realized Loss Reporting From Disbanded Investment Club

Home Fairmark Forum Taxation of Investments Realized Loss Reporting From Disbanded Investment Club

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    gardenjoy
    Participant

    The club disbanded in 2019 (my share was 20.4%). My K-1 shows a net LT CG (line 9a) of $16563 + small interest and dividend amounts.
    The ICLUB software generated a Withdrawal Distribution Report along with with the K-1. The WDR shows a Realized Loss of $4782. This is not included on the K-1.
    Here is a link on ICLUB which talks about the WDR and includes an example. https://www.iclub.com/faq/Home/Article?id=169&category=9&parent=2
    The loss is calculated by adding my tax basis prior to withdrawal of $20494 and the current year earnings of $16583 and then subtracting the cash payout when we disbanded the club of $32296 resulting in the Realized Loss of $4782.
    I am using FREETAXUSA online software and am not sure where to claim the loss in the tax forms. If I include it on Sch D Line 12, I need to modify the $$ reported on the K-1. A search brings up IRS form 4989, however I don’t see how that could be filled out with the situation I have.
    Any information or suggestions would be appreciated.

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