I'm a 20% limited partner in an apartment building. On my K-1 it shows ending capital account as negative 257,000 and my share of liabilities as 395,000. The general partner is talking about selling the property for 4,200,000. I'm trying to understand what my tax liability will be? Is it 840,000 -(257000)=1,097,000 or ? Does the debt have any impact? I think I have to pay regular tax on depreciation recapture and capital gains on the rest. Will the final k-1 tell me how much depreciation has been taken or do I have to figure that out somehow.
