There is no set format for a Section 751 Statement. It's basically a letter providing the details required by the IRS:
- The transfer date
- The amount of gain or loss attributable to the Section 751 property (ordinary income/loss)
- The amount of gain or loss attributable to capital gain or loss on the sale of the partnership interest.
The statement should also include:
- Your name as it appears on your tax return
- Your SSN
- The tax form and year (ex: 2015 Form 1040)
- Name of Partnership interest that was sold (optional, but helpful)
If you have supporting documents that are required to be submitted to the IRS, you will need to mail in Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, within 3 business days after you have received acknowledgement that the IRS has accepted your electronically filed tax return. Include your name, address and social security number on the Form 8453. If you filed a joint return, the name and social security number of your spouse is also required.
Mail Form 8453 with supporting documents to:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
1. Print a copy of your completed Form 8949. At the bottom of Form 8453, check the box for Form 8949
2. In Forms Mode, click on Forms and type in Form 8453 to bring it up on the screen. Fill in the data then print it.
3. Using the example in the K-1 tax package, on a sheet of paper, type the 751 statement.
4. Mail these documents to the address above.
