Partner Sold Interest to a New Partner. Where do I enter Selling Partners Long Term Capital Gain on Sale

[SandSpider]

Had a partner contribute 30k in 2018 and they were one of 4 equal partners in an LLC.  In 2021 they sold their interest for 45k to a new partner.  Trying to figure out where in Turbotax I enter the CAPITAL GAINS that the selling partner realized from the sale.

I figure its going to be line 9A of the K-1, but not sure.  Either way just need to know how to edit 9a (or wherever I should put their basis) in TT

Thanks in Advance!

[Mike9241 · Accepted solution]

if the old partner sold directly to the new partner, the partnership does not report the sale except for any 751 gain. the partnership probably should elect 754 treatment to give the new partner additional basis if he paid more than the value of the previous partner's account. 

this is a complex situation, so if you are unsure of how to do this, the use of a pro for this year is highly recommended.

[SandSpider]

That makes a lot of sense as the partnership wasnt involved at all in the transaction other than the recording.

Yes new partner paid old partner a higher price than their original cost basis.  Can 754 treatment be applied through TT?  Or is that something that is done outside of the capabilities of TT?

[MarilynG]

Yes, 754 treatment can be elected on a 1065 return as a attachment to Schedule K-1.  However, the return must be mailed in as the statement does not efile. 

Click this link for more info on 754 Election.