I received a final K-1 on a multi-family real estate property that i invested 40K in 2018 and received 42k in 2022. My total gain is $2000. Limited partner(passive investor)
I have the final K-1.
Section L:
The begining capital account is -20,431
Current year net income 62,431
Withdrawal and distributions 42000
Ending capital account is 0.
Box2. 7642 (net real estate income)
Box9c: 8461 (uncaptured section 1250 gain)
Box 10: 54789 (net section 1231 gain)
Box 19 A: Distributions 42000
Box 20: has N, Z, AG, AH
I have suspended losses carry over of -48,714. I entered sale price as 42k and partnership basis as initial investment of 40K.
When I enter this information in TT and review SECTIONA: line 9
it appears that my net income is column a(7462+2000+54789)=64251 - 4871(col b) = 15537(net income allowed). When i review 1040, looks like I am ending up paying tax on 15537 and not 2000 I received as gain. I did not received any distributions for the property. Should i adjust my basis so 15537 is reduced to 2000?
Can somebody please help me resolve this?
