Membership Interest Purchase Agreement says purchase price was $50,000. In my capital account at the time (Dec 11, 2021) was $53,275. That capital account figure has accounted within it any liabilities and guaranteed payments, etc. My brother started paying via monthly installments in 2022.
I'd hired an accountant to do my 2021 taxes but only recently discovered she did them wrong and they weren't accepted by the IRS, and then she basically disappeared on me, so my 2021 taxes are not even considered filed yet. Not knowing that, I filed my 2022 taxes but without including anything about the LLC or the purchase of my LLC interest, so I want to be sure I include the entire purchase of my LLC interest in the 2021 personal taxes that I'm trying to do now, as one amount.
The K1 that I'd received from the LLC's CPA did NOT show my K1 as final, and showed me STILL at 50% for the share of profit, loss and capital at end of year, and it showed my capital account at the end of the year, which was $55,685.
In TurboTax 2021, it looks like they only use Form 4797 (instead of Form 8949 with Schedule D), but this is a problem because it looks like only on Form 8949 and Schedule D can you do the adjustment for the purchaser being my relative (code "L", followed by the adjustment amount that would make the final Gain or Loss = "0").
In TurboTax 2021, there is a screen that says at the top: "Enter Sale Information"
"Using your Schedule K-1 and other supporting documents, enter the information below about your sale of [the business]."
Under that it says:
"Regular Gain or Loss", and under that it says:
"Sale Price" (I put $50,000)
"Selling Expense" (should I enter all the legal fees I had to pay to have a lawyer negotiate the purchase agreement?)
"Partnership Basis" (I'm assuming this should be the amount in my capital account as of the date of the purchase agreement, which was $53,275.....right?)
"Ordinary Gain" (this should be 0, correct? Not $-3,275?)
"1250 Gain" (this I should leave blank, correct? Since this is only about real estate or something?)
