Hi,
Can anyone help to explain below question? Thank you very much.
I will check with CPA and Partnership to confirm that I received the correct documentations.
So far I just assume the K-1s which I had are correct and just use that numbers as example to ask your help:
"The capital account was $42,000 in 2017 year end, and $42,000 at the beginning of 2018 before the liquidity event, and capital account was $0 at the end of 2018 after liquidity event, but the cash I received was only $45,000. And after lawsuit 2021, I received court settlement $8,000. The original investment cash in 2013 in Partnership is $53,000( Which included Syndication fee $3000)".
And it was confirmed that this $8000 settlement "considered to be a partial collection of class member's interest in the original property".
If in this case, which amounts should I compare to report gain or loss? And if gain, is that capital gain?
Thanks again.
