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Returning Member
posted Apr 27, 2023 4:27:37 PM

I got a schedule K-1 (form 1065). I have some long-term gains in 9a, which appear as distributions, too, in 19A. What should be the income tax rate on this?

I have long-term capital gains in 9a that also appear as distributions in 19A. I thought these would get taxed at the long term capital gain rate of 15% but turbotax taxed this in 20%.

0 2 840
2 Replies
Level 15
Apr 28, 2023 12:20:11 AM

9a is taxable as long-term gain and increases your tax basis. 19A is not taxable income but reduces your tax basis. why 20%? more income can have an affect on other items.  you would need to review the cap gain and qualified dividend worksheet to see how the gain is taxed. 

Level 13
Apr 28, 2023 1:23:06 PM

To provide a little more clarification, the capital gains rate can be 0%, 15% or 20%.

Your rate depends on your taxable income and filing status.

As was noted by @Mike9241 , you can see this determination by reviewing your capital gain tax worksheet within TT.