Hello Forum,
I have a partner contribution of property (mutual funds) that has a built in gain/loss. I am not sure how to enter this in t-tax business.
I have property a cost basis C, value on date of contribution FMV, and built in gain/loss G. Where G, of course, is just FMV-C.
From research I understand that the "outside basis" or "partner's basis" is the actual cost basis: C.
The "partnerships basis" is FMV. The partner's "inside basis" is also FMV.
Question:
The turbotax step by step does not specify which value or basis, C or FMV to enter as contributed property.
If you open forms it takes you to "K1 worksheet". Here you see the value from step by step copied into "Capital" and "Basis" columns. These are both editable but no information on what basis (outside,inside?) should be used here.
For K1 M and N sections I check yes for built in gain and enter G as the partner's unrealized 704c gain.
I would like to know what values to use where... At the risk of sounding a bit too demanding, a step by step would be nice eg:
- Enter FMV in turbotax step by step
- Go to the K1 w/s form and change the basis to C
- Enter the gain G in K1-N
- Check the partners capital account increases by FMV
- you are done
Thank you, pdp
