I had a real estate partnership that was disposed in 2022 and I received a K1.
I had invested $25,000 and received a final distribution of $45,000 for a real net gain of 20k. But in the final K1 "Partner's capital account analysis" the beginning capital account is only $10,000 due to losses. Line 9a reported a gain of $35,000 (45k-10k) instead of the actual gain which is only $20k.
Using TT 2022 when I enter all the information schedule D shows as follows
Part 2 Line 10: 35K
Part 2 Line 12: 35K.
So the 35k gets double counted but one of the 35k gets offset in line 8 of 1040 due to passive allowed losses of -35k. But my question is why should I still pay capital gains on 35k? I should be paying only for 20K. How can I have the software correct this?
This is what I entered in TT 2022 K1.
Describe the Partnership: "This partnership ended in 2022."
Describe Partnership Disposal: "Complete disposition"
Tell Us About Your Sale: "Sold Partnership Interest"
Sale Information:
Sale Price: 45k (from final distribution)
Partnership Basis: 10k (even I made this 25K it did not make a difference).
