Partnership tax gets complicated very quickly and TT is developed for the masses. A few follow-up questions:
- Based on the current facts, I am assuming that your K-1 reflects that the partnership is a PTP?
- Since this is a flow-through entity, you should be maintaining a basis schedule of your investment. Have you been maintaining your basis schedule?
- If bullet #2 is "no", then the alternative would be to use your K-1 section L as your tax basis.
- Assuming that your K-1 is marked "final"?
- If my assumption is correct in bullet #1, then you should only be determining the gain in one place.
- My preference is to handle this in the K-1 section, which is reflected in your facts
- Does the sales price you reflect in your facts agree to the distribution reflected on your K-1?
- What was the K-1 activity; ie: trade or business?
*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.
