Don't get hung up in the nomenclature.
Not sure what the various options are, but most likely you will just need to indicate you "sold" it.
As a result:
- TT will ask a number of questions.
- TT will need to know the "selling" price. This amount will be the liquidating distribution received upon liquidating the partnership.
- TT will need to know your tax basis in your partnership interest. Hopefully you have this.
- TT will need to know if any of the gain is subject to Section 751 recharacterization. This applies to what is known as hot assets, which includes your share of depreciation recapture.
- TT will need to know if any of the gain is related to unrecaptured Section 1250 property. This would be reported on the K-1 if applicable.
- Once the above is input into TT, TT will handle the rest.
*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.
