- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
when I indicate the limited partnership ended in 2017 turbotax is asking specifics about the sale, which I dont have access to as a limited partner. (ie sale price date etc) I only received a k1 indicating my share of 1231 gain, unrecaptured 1250 gain, and an amount in box 19A indicating my distribution . The underlying investment/sale was sale of rental real estate. This limited partnership was formed over 20 years ago.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
As a partner in a partnership you should be maintaining a basis schedule (tax basis) of your investment in the partnership.
This begins with your initial capital contribution and is updated annually for the applicable lines on your K-1.
If you do not know your tax basis you will not be able to determine your final gain or loss.
The amounts reflected on your K-1 will be included on your tax return, but you will be missing the overall gain or loss on sale. You know your final distribution amount which would be your sales price (final distribution), you could use 12/31/2017 as a sale date, your purchase date is when you acquired the partnership interest, but it appears you are missing the last piece which is your tax basis.
I will ask a follow-up question in a comment below.
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
1) The ending capital on your K-1. Positive or negative?
2) The distributions reflected in this section, does this agree to actual distributions received?
3) Does the amount on line 19 code A agree to the distribution reflected in Section L distribution line?
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
ok. So based on your updated facts, this is what needs to happen:
- Since you did not main a separate tax basis worksheet, we will assume that the K-1, which does indicate tax basis per your facts, is correct.
- Since you indicate that there is basis remaining in Section L ending capital account, this means you have a capital loss on this investment.
- You can handle the input of the required information in one of two ways:
- You can indicate that you received zero proceeds and reflect the ending capital account amount as your tax basis.
- You can indicate the proceeds as what is reflected as distributions, and your tax basis would be what ever the basis amount is BEFORE these distributions.
- Either method should arrive at the same capital loss figure.
- For the remaining pieces of information you would know the purchase date of the investment and then you would enter the "sales" date as either the actual or just use 12/31/2017.
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
broc2 a few seconds ago
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
Seems odd, but that is what you are saying in your example.
So based on these updated facts, you would enter $60,000 for the sales price and $60,000 for your tax basis.
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
So based on your facts you didn't lose anything, because you invested $10,000, "earned" $50,000.
You were then paid the $60,000 netting you to zero. No gain or loss.
Also keep in mind the date of replies, as tax law changes.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How to input final distribution from a private limited partnership ( I was limited partner)? and should this qualify as long term capital gain?
Also keep in mind the date of replies, as tax law changes.
Still have questions?
Make a post