It seems that TT has changed the way it handles final K-1s. In the past, it would ask if this was a "final K-1" and I would answer yes, and that seemed to be it. Now, I enter "This partnership ended in 2024" to state that it is a final K-1. And that forces me to answer a lot of new questions.
Background: This K-1 is received because we have invested $ in a real estate LLC. They purchased land in 2018, and many people (including us) invested $ for them to purchase it. We are a limited, domestic partner. Now, in 2024, they have sold off all the land, and we have received a final check (which is our portion of the sale) which is why we are getting the final K-1.
The K-1 Footnotes states: this entity is a passive entity, the partnership is NOT subject to the section 163(J) interest expense limitation, income is NOT considered qualified business income, the ending capital account balance represents partner's final cumulative share of partner contributions/distributions plus allocated partnership income/loss through final operations.
In TT, after entering "This partnership ended in 2024", it asks to choose how you disposed of this partnership. I chose "complete disposition" (I assume because we sold all of the property)
Next, it asks "What type of disposition was this?"
Do I choose "Sold Partnership Interest" or "Liquidated Partnership Interest"? (I assume latter, since all of property was sold?)
Next it asks for purchase and sale date for your interest: Do I just put the date they received our check for purchase, and the date we received our final check from the sale as the sale date?
This next part is the hardest part. TT than asks for information on the "Regular Gain or Loss". I need to fill in: Sale Price, Selling Expense, Partnership Basis, Ordinary Gain, 1250 Gain - Where do I find this info?
It also asks for AMT Gain or Loss info -- can I leave this blank since box 17 of the K-1 has nothing in it?
I'd appreciate any help/advice! Thank you!
