@Rick19744 , @PatriciaV, and any other experts on K1. I was a limited partner in a real estate investment partnership. I'm trying to calculate my final partnership basis to input in Turbotax. My tax basis at the end of 2021 was zero. My final K1 for 2022 has the following values.
Part III:
1 Ordinary Business Income, -292 (I BELIEVE I SUBTRACT THIS FROM THE PRIOR YEAR BASIS SINCE IT IS NEGATIVE)
2 Net Rental Real Estate Income -26,503 (I BELIEVE SUBTRACT THIS FROM THE PRIOR YEAR BASIS SINCE IT IS NEGATIVE)
10 Net Section 1231 Gain 82,880 (I BELIEVE I ADD THIS TO THE BASIS)
19 Code A Distribution 53,967 (I DON'T INCLUDE THIS IN BASIS CALCULATION AS IT IS THE SALE PRICE)
20 Code V (Unrelated business taxable income) 43,345 (I'M NOT SURE IF THIS INFORMATION IS RELEVANT TO CALCULATING FINAL COST BASIS, AND--IF SO--IF I SHOULD ADD OR SUBTRACT IT)
20 Code Z (see statement) (I BELIEVE THIS INFO IS IRRELEVANT TO CALCULATING COST BASIS BUT LET ME KNOW IF I'M WRONG)
All other fields in Section III are empty
I know that the above 19 Code A Distribution figure of 53,967 will be my sale price. I have the dates of purchase and sale. I know that my final cost basis will be the prior year's tax basis adjusted for the above information. Here is my stab at making the calculations for the partnership basis:
Prior Year Basis 0
- 292 (Field 1 Ordinary Business Income)
-26,503 (Field 2 Net Rental Real Estate Income)
+82,880 (Field 10 Net Section 1231)
-43,345 (Field 20 Code V -- Unrelated business taxable income -- REALLY DON'T KNOW IF I SHOULD ADD OR SUBTRACT THIS ONE, OR IF IT SHOULD BE INCLUDED AT ALL)
This gives a final basis of 12,740, but I don't have a lot of confidence if I have included the correct fields or made the right decision to add vs. subtract.
I appreciate your guidance on this. I think I'm close to having the calculation but want to make sure I'm doing this right as it is my first time. Thank you.
