adding more information:
Sold commercial rental real estate for 110,400 6/15/2022
purchase price was 75,000 on 8/1/1998
higher of depreciation allowed or taken over the 25 years was 45,685
(depreciation was 1,923/year because land cost was included in error).
Doing the math for the K1 I show the following:
Sold for 110,400
Adjusted basis 29,315 (75,000 cost less 45,685 depreciation)
Sub-Total 81,085
selling cost 970
Gain 80,115
on the K1 I completed I listed in box 9c 45,865 unrecaptured 1250 gain
on the K1 I completed I listed in box 10 - net section 1231 gain 80,115
is that correct?
The second question:
when bringing that information into my personal 1040 return
Under the K1 information, I clicked disposed of property
Sale Price 110,400
Selling Expense 970
Partnership Basis 29,315
There are then 2 boxes
one says ordinary gain
the second says 1250 gain
under 1250 gain I put 45,685
for the ordinary gain do I list the complete gain on the transaction of 80,115 or subtract the 1250 gain and list 34,430 which is 80,115 less 45,685? In other words does Turbo Tax do the math for me where the tax is
1250 math 45,685 x .10* = 4,569 (*rate is 25% less 15% already accounted for in 1231 math)
1231 math 80,115 x .15 = 12,017
Total 16,586
or
is the math
1250 math 45,685 x .25 = 11,421
1231 math 34,430 x .15 = 5,165
Total 16,586
I'm trying to figure out the flow through the return so I'm not double counting the gain. I think I list the 80,115 but want to make sure.
Thanks
