My wife is a physician in a private practice owned by the practice's 10 partner physicians. For business purposes, the practice is set up as a professional corporation (PC). They operate out of two offices: one that they simply rent from an office building owner, and the other in a building (plus land) owned by a separate company (let's call it "East Drive"). East Drive, however, is actually a partnership owned by the 10 partner physicians, each with an equal share. East Drive leases the office to the PC and charges the PC rent.
All of this is fairly straightforward from our personal tax prospective, as the PC issues a W-2 (the PC zeros-out their books at the end of the year and all profit is split equally between partners as their total wages) and East Drive issues a Schedule K-1 (Form 1065). I've taken care of our tax returns through TurboTax every year with no problems. However, there was an extra wrinkle this year.... and I can't figure out where to enter this information in TurboTax.
That wrinkle is that a new partner bought into the practice, which includes an equal share of East Drive. Each of the 10 partners sold exactly 10% of their share in the partnership to the new partner. The difference between my wife's 10% basis of the property and her 10% of the new partner's buy-in payment is considered income. The practice's accountant issued her a (not very official-looking) page that includes proceeds, basis, and gain, and indicated that the figures should be reported on her 1040 Schedule D (Capital Gains and Losses).
The problem is that I can't find where to enter that info in TurboTax. (I do see exactly where to enter it on the Schedule D, however, if I was just using the IRS forms without TurboTax.) If I go to the TurboTax section for "Investment Income" (which is a common source of capital gains/losses), it only prompts for the broker or the bank and then asks for details from the broker-/bank-issued 1099-B. If I go to the section about Sales of Business Property (which is for IRS Form 4797), that isn't right either, because it's looking for the business's gain/loss from the Schedule K-1.
If anyone can help me out with this, I'd greatly appreciate it! Thank you so much!
