Final K1 Disposal of Partnership Interest

[Peter Amico]

Hi experts, 

I disposed of limited partnership shares this year (2021) that I bought for 100k cash in 2018. The final k1 shows no net real estate income and only a distribution in box 19. In terms of basis, I contributed 100k in 18. By my calculation, my adjusted basis is 100k- Distributions - ABS value of net taxable income= 29,930. With a distribution of 109978 in 2021, that would make taxable amount= 80,046. 

		Distributions	Net Taxable
2018		5,056	(10,910)
2019		7,129	(19,011)
2020		8,952	(19,011)
2021		109,978	0

Questions. 

1. How do I report this sale on Turbotax Business (I owned this interest in an LLC)?

2. How do I break this into unrecaptured capital gain v capital gain? Or is this all unrecaptured gain? The k1 doesnt provide any info on this. 

The k1 does show an ending capital account of -63825, but I am not sure that means anything for my adjusted basis. 

[Mike9241]

most likely the k-1 is incorrect.  for 2021 unless you sold your interest on 1/1/2021 you are supposed to receive an allocation of income/loss for the year based on either the cut-off method ( your share of  income/loss through the date you sold) or the full-year method you average profit/loss % for full year times the income/loss for the full year.   in addition, the partnership is responsible for reporting any 751 gain. that includes income from unrealized receivables, depreciation recapture, inventory.  see this link

https://krscpas.com/tax-implications-on-sale-of-a-partnership-interest/ 

only the partnership can provide this info

your capital a/c might reflect an accounting basis and not your tax basis.