Regardless of which "disposition selection" you choose, you will get to the same result.
Keep in mind that you will need to update your tax basis by the final K-1 items EXCEPT for the distribution amount reflected in box 19.
- Determine your tax basis as noted above
- Enter the K-1 items into TT as you have noted
- TT will at some point ask for "selling price" or some other terminology and this will be your final liquidating distribution.
- TT will also ask about your tax basis and then enter this as well.
- I would expect the final K-1 to have a note regarding any Section 751 related to the disposition. This would be your share of any ordinary income recapture on depreciation related to tangible assets. If you do have this information, your overall gain will not change, just the character and how to show this on the return.
- Having a small gain is certainly not out of the question.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
