Get your taxes done using TurboTax


@Anonymous_ wrote:


However, in anticipation of the next issue, you will need to know your basis in the LP, the sales price and any expenses, and also Section 1250 gain or ordinary gain (if any). You may have to contact the accountant you used to prepare prior tax returns for this information; no one on this board can provide you with that information.


Thank you for the heads-up. In the Schedule K-1 (Form 1065) I received from the limited partnership, they included a "Sales Schedule" that looks like below:

ttb_1.jpgThe Trust was dissolved last year so everything was basically sold as well, including the limited partnership. Does this sales schedule look like it will have enough information that you mentioned? There was no Section 1250 income as far as I can see on the K-1 (i.e. it was blank).

 


@Anonymous_ wrote:


As a final thought, and in my opinion, part of the problem with these investment vehicles is that they are extremely complex in terms of tax reporting, particularly when they either wind down or are sold. Personally, I try to avoid investing in anything that is going to get me a K-1 for that precise reason.


I totally agree. If I had known all these things ahead of time I would have told the investment firm to stay away from these partnership investments and keep things simple. It all just doesn't seem worth the headache each year. Lesson learned.