Where does a k-1 with unrecaptured 1250 gain and section 1231 gain appear on the 1040?

Forum|Forum|7 years ago
June 6, 2019
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Why is the 1250 gain not showing up on my 1040 anywhere? I see the 1250 gain showing up on part 3 line 19 of schedule D but if I look at my 1040 income section the 1250 is not listed - only the schedule D from line 15 is listed. Should line 6 on my 1040 not include the total of the 1250 gain and the 1231 gain? Can someone explain?

TurboTax Basic Windows

Best answer by Rick19744

What happens here is there was a sale of depreciable property. All of the sale is reported on other lines; capital gain, Section 1231, etc.

Part of what was sold was what is known as Section 1250 property, real property. The law says that this property has a capital gain tax rate of 25% and that is why is it showing up on the capital gain (Sch D) worksheet. This will apply the correct rate for that portion of the property sold.

Rick19744

Answer

Level 13

What happens here is there was a sale of depreciable property. All of the sale is reported on other lines; capital gain, Section 1231, etc.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

leeesaAuthor

Level 2

so as far as the 1040 income section goes, 1250 will not appear; rather the schedule D tax worksheet takes care of applying appropriate tax to the 1250 gain (income). Right?