Hi
I have read many posts but I have not been able to find a solution to my problem. Here are the details
- LLC formed in 2018. Bought a rental property in 2018.
- in 2024 LLC sold the rental property, all proceeds were distributed to all members and LLC was closed in 2024.
- Final K1 was generated by the accountant and has all the data needed to enter in TurboTax 2024 Premier.
Problem: I tried entering the data for at least 8-10 times for this LLC but somehow TT calculates the taxes to be double of what it should be. It is somehow counting the entries twice.
So the question I have is do I have to enter the information about the property sale done by LLC into my taxes? My K-1 has my share of gains listed which I enter and everything seems to be correct. As soon as I enter the property sale information, the taxes doubles so I am sure I am not entering it correctly.
The process I follow is
16) On s1) Enter the capital account information from K1
2)This partnership ended in 2024
3)Complete disposition
4)Liquidate partnership interest
5)Enter the date LLC was established (2018) and dissolution date for LLC (2024)
6)For sale information I leave it blank. If I enter the sale information about the property then this is when the taxes doubles. I think this is where I am not sure if i enter the LLC sale/liquidation information or the real estate property sale information that LLC owned and sold.
7)If I enter no information and move on, then the LT capital gain is zero here.
8)Then i enter the rental real estate info in box 2
9)Participated in business and no special handling
10)Check box8-10, Box 17, Box 19, and Box 20 since those have numbers on my K1 and I fill in the information on next few screens.
11) For unrecaptured section 1250 gains, I say no. Not sure if this is correct. The only option that may apply is "Disposition of an interest in partnership" but not sure what I should answer. On K1 I do not see anything that mentions this.
12) Fill in box 17 info (negative number). On Enter Code B details screen, section 1231 is already entered but section 1250 is blank. I leave it blank.
13) enter box19 info
14) enter Box 20 info. I have 3 entries for AJ, 1 for N, 2 for Z. I enter all of them.
15) Section 199A income: I say that the income comes from the partnership that generated this K1 which is the case.
16) On 199A income information I enter rental income, 1231 gain as it is in the K1 stmt A.
The above process generates correct tax due. But during the smartreview, it flags the items that i left blank in step 6 above and asks me to enter that information. If I enter the property sale information, then the tax is doubled which is incorrect.
Any help on how to deal with this will be highly appreciated. I have read many post about this K1 entry issues and some posts suggested that TT has a bug where it counts the gains twice. Not sure if that is true.
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