schedule k section 1231 loss

I have a CA LLC that is declared to file 1120s corp sub-s returns.

The company purchased a residential house in 2019 to remodel for a business investment. The property sold february 2021 for a smallish profit, approx 16k. The 2 year time frame makes this a long term gain but it seems to just end up up in Sch K1, box 9, net section 1231 gain or loss with no long or short term classification. I was fully active in the all the aspects of the remodel.

 

The company historical business activity prior to the house investment was consulting. 

 

Is there a way to enter the transaction in Turbotax business  so that the gain reported on the sch K1 can end up as a long term capital gain when bringing it into my personal return, ie., schedule d long term. r

Business & farm

In short, Section 1231 gain is treated as long-term capital gain per I.R.C. §1231(a)(3)(A).

 

See https://www.law.cornell.edu/uscode/text/26/1231

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Business & farm

thanks, that was good info, I'll keep Cornel in the address book