in schedule k1, how to categorize Box 10 - Net Section 1231 Gain as long term capital gain?

Forum|Forum|1 year ago
June 19, 2025
10 replies
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AmeliesUncle

Level 15

Are you entering the K-1 on to your personal tax return?

It should automatically treat it a a long-term capital gain, unless you have non-recaptured Section 1231 losses that were carried over from prior years.

leo-jyzAuthor

Level 2

Yes, It is for my personal tax return.

I dont have non-recaptured Section 1231 losses, I have ordinary loss carriedover from previous year, but even with that, turbotax automatically apply short term tax rate to my Gain.

AmeliesUncle

Level 15

Are you SURE it is applying the short-term rate? How are you arriving at that conclusion?

Assuming you are right that it is applying the short-term rate, sorry, I'm puzzled at why it is doing that. Hopefully someone else will come along soon and be able to figure out why it is doing that.