Actually you have done a pretty good job in your attempt, but I will add some commentary:
- While this may not be what you want to hear, but when you were gifted the interest 20 years ago, you should have been provided with the tax basis of that interest at the time of gift.
- Hopefully you have this, as if you don't, you really don't have complete information to determine your overall gain or loss.
- The information on the K-1 Part II line L is tax capital. This is generally, most of the time, not the same as your outside tax basis. This reporting was just recently mandated and people think this is their basis in the investment and it's not. This represents each partners tax basis of the assets in the partnership.
- Your selling price noted is correct; your liquidating distribution
- If your K-1 does not have any footnote regarding ordinary gain, leave this blank. Part III line 1 has already been reported and should adjust your tax basis; which we haven't determined if you have this schedule.
- Section 1250 gain is correct - line 9c
- I think your other responses to the TT questions are good
- The real key here is the question of your partnership basis. Let me know if you either have this or don't. If you don't, how many past year K-1's do you have?
- Or is this just not a significant number that it's not worth the effort of trying to determine a more accurate partnership tax basis?
*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.
