The examples have been so helpful, however when I crunch the numbers on a few of my K1's, I get a capital gain of -0- which seems odd. One such K1 is shown below:
Final K1 box checked
Part II
Box L
Beginning capital account -282
Current year net income 34,389
Withdrawals and Dist 34,107
Ending Capital Account 0
Part III
line 2 2,850 Net rental real estate income
line 9C 5,978 Unrecaptured section 1250 gain
line 10 31,789 Net section 1231 gain
line 18W 250 Other deductions (DEBT FINANCED DISTRIBUTION INT)
line 19A 34,107 Distributions
line 20N 1,302 BUSINESS INT EXPENSE INCL IN RENTAL REAL ESTATE INCOME
The final partnership cost basis = -282 + 2,850 + 31,789 -250 = 34107
But box 19A distributions which should be the sale price is also 34107
subtracting there is a net capital gain of -0-
Is this a common situation? Is there some underlying consideration that makes all these K1's have -0- capital gain?
(Some of the other K1's don't have an line 18W entry. but guessing that doesn't make a difference)
Many thanks!
