Business & farm

This is a K-1 from either a partnership or an LLC taxed as a partnership.

My comments are as follows:

• You should be maintaining a tax basis schedule of your investment in this partnership.  This is your responsibility.  Without this, you have no way to compute your overall gain or loss, which is exactly the information that TT is requesting.
• Based on the limited details, I am not sure everything syncs the way I would expect it to.  It also appears that you are reflecting a negative $1 for line 5 and that doesn't make sense.
• You can ignore line 20V as you are not a tax-exempt entity so unrelated business income does not apply to you.
• Bottom line is you need to compute your tax basis from the beginning and then adjust it for the applicable lines on this final K-1.
• The withdrawals amount may or may not be what you actually received upon exiting this partnership.  You need to know exactly what that amount is as this becomes your selling price.
• Your tax basis figure, once determined, is your cost basis.
• The difference will be your overall gain or loss.  See bullet #9.
• You will include line 9c when asked by TT, but this has no bearing on your tax basis or overall gain or loss.  This is the 1250 gain you refer to in your facts.  TT will use this information when determining your overall tax rate.
• The ordinary gain may not be applicable to you, however, without seeing the actual K-1 and statements I can't be certain.  This relates to your share of Section 751 gain.  This essentially recharacterizes some of your overall gain as ordinary instead of capital.  This is a confusing area for those that do not understand this matter.
• I also agree that it may be best to gather up all your past K-1's, your final K-1 and meet with a tax professional who can help you determine your tax basis.  As stated earlier, without this you are not able to compute your overall gain or loss.