Using turbotax business 2020 for a Limited Partnership return.
This question is about the "built-in gain" associated with a partner's contribution of property (mutual funds).
I read about Box 20, code W and box 19 code B and have a basic understanding of what goes on if the property is distributed to partners. It looks like the contributing partner must recognize the pre-contribution gain even if the property is not sold.
But what if the partnership sells the property for cash instead of distributing the property to partners? This is likely what I would do. The broker knows the true unrealized gain and the partnership could record the correct amount of cap gains income associated with the sale.
