Hi. I apologize in advance if I am not computer savvy in using Turbo Tax community, but I really, really need some help here. I have spent no less than 40 hours trying to enter in a K-1 disposition (not kidding) and I keep getting an obviously wrong answer. Here goes:
On 7/10/2020 I invested in a limited partnership for a real estate purchase. On 9/30/2022 that real estate was sold, liquidated (complete dissolution), money disbursed to partners and company ended. This seems like it should be simple. The only capital invested was the initial $35,000. There were no distributions other than the $52,251 I received upon liquidation. All activity in 2020 and 2021 are passive. Here are the details:
- Limited Partnership
-Starting investment - $35,000
- K-1 for 2022 is the final K-1
- I select "liquidated"
- I select "complete dissolution"
- Outside basis - $34,351
- Beginning capital account current year (Part 2 L) - $34,243
- Current year net income (Part 2 L) - $18,008
- Withdrawals and distributions (Part 2 L) - $52,251
- Ending Capital account (Part 2 L) - $0
- 2022 Unrecaptured section 1250 gain (Part 3 9c) - $1,691
- 2022 Part 3, Box 2 - -$6,787
- 2022 Net section 1231 gain (Part 3, 10) - $24,761
- 2022 Distributions (Part 3, 19) - $52,251
- Did any Unrecaptured Section 1250 gain come from estates... or disposition of an interest in partnership - I select "no"
- All of my investment in the activity is at risk
- I have passive activity losses carried over from last year
- no uncommon adjustments
- I have completely deleted the K-1 and re-entered all data
- 2022 Other Information (Part 3, 20) A: $34; N: $5,217 V: $9,993
- I am able to enter in all the K-1 information
- I select "This partnership ended in 2022"
- No special handling
- The big problem is that I keep getting under Income - Business Items (as shown) a -$33,385 Schedule K-1 and a Sale of Business Property $24,761. This does not seem right. I earned $18,008 in current year net income. My displayed tax refund is like CRAZY high - more than $10,000 when before adding the K-1 it was around $7,500. So on this investment which was extremely profitable produces a tax refund of $3,000+
Again I am so, so desperate here - I am running out of time, taxes due 10/16/2023 and I haven't even done the final review or the state taxes. Please help.
