Thank you for responding.
As the bookkeeper, I provided a trial balance as of the effective date of the minority interests buyout to the tax preparer who prepared and filed a partial year 1065. The K1 from that return shows a small amount of basis, which I checked to previous records.
The problem I'm having is with my 1040. I entered all the other income information (e.g. W2s, 1099s, other K1s, etc) and took note of the tax due/refund. I then entered the proceeds of the buyout and the basis and took note of the tax due. The differential on tax due with capital gain & basis entered is somewhat higher than the 15% rate that I expected (it's closer to 20%) on the capital gain, given my taxable income.
These are the screens:
1. Select the Type of Partner: Limited Partner or Other LLC Manager
2. Describe the Partnership : Checked only "Disposed of a portion of my interest in partnership during 2018"
3. Tell Us About Your Sale : Checked "Sold Partnership Interest"
4. Enter Sales Dates : Entered Purchase Date and Sale Date, which are at least 5 years apart.
5. Enter Sale Information
- Entered the buyout proceeds under Sale Price
- Entered the amount of Partnership Basis under both Regular Gain or Loss and AMT Gain or Loss
- Tried entering the gain under both Ordinary Gain or 1250 Gain. Sale or similar result.
6. Entered the amounts in the respective boxes from the K1, including the buyout proceeds in box 19.
Your help will be greatly appreciated.
